Opinion
Understanding Utah’s New Car Insurance Laws
If you drive in Utah, your insurance policy just got an update, whether you realized it or not. Recent legislative changes have altered the landscape of mandatory auto coverage, impacting everything from liability limits to penalties for non-compliance.
This guide cuts through the legal jargon to explain exactly what Utah drivers need to know about the new car insurance laws and how to ensure your policy protects you and stays legal.
What specific legislative changes or bills prompted the new car insurance laws in Utah?
The new Utah car insurance laws 2024 were prompted by House Bill 113 (2023). Lawmakers raised concerns that the old insurance minimums no longer matched real-world accident costs.
Medical expenses, labor and vehicle prices have skyrocketed for years, yet the state’s minimum wage has remained the same. That left many drivers underinsured, even when they followed the law. HB 113 addressed this gap by increasing the liability limits that every driver must carry.
What are the new minimum liability and property damage coverage limits required by the state?
Under the revised Utah auto insurance requirements, drivers must now carry higher liability protection to cover bodily injury and property damage. Here are the updated minimum coverage limits for Utah:
- Bodily injury liability per person increased to $30,000 from $25,000 for injuries or death in a single accident.
- Bodily injury liability per accident remains the same at $65,000 for all injuries or deaths in a single accident.
- Property damage liability arising from a single accident was increased to $25,000 from $15,000.
- The total maximum for all property damage, injuries or deaths caused by a single accident was raised to $90,000 from $80,000.
When did these new insurance laws officially go into effect, and what is the deadline for updating existing policies?
The law officially took effect on January 1, 2025. Drivers were not required to take immediate action because most insurance companies automatically adjust policies when they renew. That means the practical deadline for updating your coverage is the date your current policy expires.
Your insurer should have already raised your limits if your policy was renewed after January 1st. If your renewal date has not arrived yet, your insurer will update the coverage during your insurance renewal.
However, the responsibility still falls on you to confirm your policy reflects the new minimums. According to the insurance experts at Quality 1st Insurance, a quick check now can prevent a major compliance issue later, particularly if your full coverage car insurance policy does not yet meet the updated requirements.
Does Utah’s status as a No-Fault state remain unchanged, and how does the new law affect Personal Injury Protection (PIP)?
Utah remains a no-fault state. That means your own insurance pays for your initial medical expenses after an accident, regardless of who caused it.
Recent Utah No-Fault changes reaffirm this system, ensuring that medical coverage continues to flow through your own insurer first. To support that structure, drivers must continue to carry Personal Injury Protection, or PIP. The required minimum stays at $3,000.
The new law does not change the PIP coverage Utah amount, but the increased liability limits still matter. If injuries exceed PIP limits and meet certain legal thresholds, the injured party can pursue a liability claim against the at-fault driver. Higher limits reduce the odds of major financial exposure once PIP is exhausted.
What are the penalties for Utah drivers who fail to comply with the new required minimum coverages?
Driving without insurance or allowing it to lapse is a Class B misdemeanor. Penalties include fines of at least $400 for a first offense and $1,000 for a second or subsequent offense within three years.
Drivers may also face suspension of their license and vehicle registration. In some cases, they may be required to carry proof of insurance in Utah, in the form of an SR-22 certificate, for up to three years if they have a prior violation or judgment.
If you get into an accident without adequate coverage, the financial fallout can be even more severe. You may be held personally responsible for medical bills, repairs and legal judgments that exceed your policy limits. The new insurance minimums are designed to prevent exactly that situation.
Conclusion
The new updates to Utah car insurance laws 2024 aim to keep drivers safer and better protected. All drivers should comply to avoid penalties and to remain fully safeguarded.
