Thursday, December 4, 2008

Utah Auto Insurance Laws and the Danger of Driving Uninsured

By Steve Turner

Car owners in Utah and the rest of the United States are required to always have their vehicles insured. You can decide how much coverage you have, but there is always a minimum set in each state. Utah Auto Insurance Laws require a minimum of $25,000/$50,000 $10,000 meaning each person in the vehicle is covered up to $25,000 with a maximum compensation for the whole car of $50,000. $10,000 is the maximum amount of property damage that will be covered.

If you get in a car wreck, as long as your policy is still valid, your insurance company covers the damages up to the amount of coverage you have. But if for any reason your insurance is not valid, the insurance company will not assume any responsibility in the accident

Because of the problems that occur when an uninsured driver gets in a wreck, the government goes to great lengths to make sure drivers have valid insurance. There are stiff fines and punishments in almost every state for driving uninsured, even if you haven't been in a wreck. What could happen if you are caught without insurance? It is different for every state.

If you are a resident of Utah, you are forced to pay 100% of the damages, and your license is revoked until you do so. You license can be taken away for up to six years while you are paying for damages. Can you go six years without driving? If you live in Michigan and get in a wreck while insured, you are only liable for $500 in damages. But if you are not insured, you are required to pay for all of it, no matter how much it is.

The laws are probably the strictest in Texas. You cannot have a driver's license until you can prove that you have insurance. If at any time you are caught without insurance you will have an initial warning fine of up to $350. It gets worse if you are caught more than once. On the second time, you are fined at least $1000 and they can take your car for up to six months.

The limits of coverage are much lower in California, but this doesn't mean you can drive without insurance. If you are caught driving without insurance your driver's license will probably be taken away for at least a year. They also revoke registration on the car until it can be proved that you have insurance. Just like in all other states, you are responsible for paying for all of the expenses of the wreck if you are uninsured.

It is crucial that you have enough insurance, and that you don't let it lapse. It is too much of a gamble to go without insurance, because sooner or later you will end up paying for it much more than the cost of coverage. Call your Insurance Agent to make sure your insurance is current and valid. Before buying a car, check with them to make sure that you have adequate insurance that you will be able to afford the monthly payments.

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Satria Sudeki said...

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K said...

I think that auto insurance is a necessity. There are a lot of things that could happen that are out of your control and that you may need insurance for.