Utah Auto Insurance Laws and the Danger of Driving Uninsured
In Utah and the rest of the United States, car owners are required to continuously have their cars insured. Although the amount of coverage greatly differs, the normal amount required by Utah auto insurnace laws is $25,000/$50,000 (meaning up to $25,000 per victim with a cap of $50,000 for the entire accident) and $10,000 for property damages. Although these minimums are predominately universal, the DMV from each state sets their own standards.
When you are in an accident, as long as your policy is current and hasn't lapsed your insurance company covers the expenses of the accident up to your level of coverage. However, if the insured has a lapse in coverage due to non-payment or for any other reason the insurance company is not responsible and the driver is 100% liable for the expenses of the accident.
To make sure that vehicle owners stay insured the government is cracking down on those who do not have insurance. These punishments are set forth by each state's DMV, vary depending on the state. If you are in an accident and you have allowed your insurance to lapse, what could happen? The punishments can be very severe.
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.
If you live in Texas, proof of insurance is required at the time you get a drivers license. If you are caught without proper insurance coverage you will be slammed with an initial fee of $350. The second time you are caught you receive a fee of $1000 and your vehicle can be taken away for up to six months. If you do get in a wreck you are held responsible 100%, no exceptions.
In California the liability limits are much lower than most other states, yet they treat driving without insurance very harshly. If you are caught without current insurance, your driver's license will likely be taken away for up to a year. You car can be impounded and your registration will be suspended until you have proof of current insurance. Like other states, without insurance you are fully responsible for all damages in a wreck.
It is very important to have current and adequate Insurance. It is not worth the risk to go without insurance just to save a little money, because it is never worth it in the long run. Check with your insurance agent or with the authorities at your state's DMV to make sure you know the laws and regulations concerning the specific coverage minimums in your state.