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.
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 from Utah and get in an accident while uninsured, you are responsible for 100% of the expenses. You are forced to pay this and your license is revoked until you do you. According to current laws, they can take away your license for upwards of six years. If you are insured and live in Michigan, you can only be liable for $500 in an accident, but if uninsured, you must pay all of it.
Perhaps the stiffest punishments are in Texas. In order to get a driver’s license in Texas, proof of insurance is required. If you are caught at any time uninsured you are hit with an initial fine of $350. On only the second offense you can be fined upwards of $1000 and your vehicle can be impounded for up to six months.
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 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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