Utah’s minimum car insurance requirements are increasing in 2025, and drivers in the state could see auto premium increases as a result. Utah’s mandatory requirements were already relatively close to the liability limits in most other states.
The Utah Legislature last updated the state requirements in 2008. The new limits take effect in January and will impact new and renewing policies.
The higher minimums will likely affect only drivers currently carrying state-minimum coverage, and not drivers who already have higher liability limits on their policies, said Betsy Stella, vice president of carrier management and operations at Insurify.
“Since the state will soon require drivers to carry higher bodily injury and property damage limits to meet state financial responsibility requirements, drivers can expect premiums for those coverages will be higher than they were for the old minimum limits,” she said.
Utah’s higher limits will add more liability protection to state-required standard policies. Here are the changes to Utah’s auto liability insurance requirements.
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Chase Gardner, data insights manager at Insurify, said the increase will probably affect rates but likely not by too much.
“Utah drivers with state-minimum coverage should see their rates increase by a few percentage points after policies reflect the new, higher liability limits, but it will hopefully have a much smaller effect than recent cost increases,” he said.
Utah’s overall average auto insurance premium is below the national average, according to Insurify’s auto insurance report. But its liability-only average rate is actually a little higher than the national average. Utah drivers pay an average of $183 per month for a full-coverage policy and $107 per month for liability-only, per Insurify data.
The national monthly averages are $204 for full coverage and $104 for liability-only coverage.
“The liability part of a full-coverage policy — which also includes collision and comprehensive coverage — adds up to about 50% of what the whole policy costs, but the liability coverage amount isn’t the only factor there,” Gardner said. “Numerous factors, like accident and crime rates and rising vehicle repair costs, affect what you pay for auto insurance. It’s those factors that are mostly behind the broader rate increases in the last several years.”
Insurify analysis predicted a nationwide average increase of 22% in auto insurance costs in 2024. Costs had already spiked 15% by the middle of the year, according to Insurify’s auto insurance report. Car insurance costs in Utah are rising just a little faster than the nationwide average, and Insurify analysts predict a 24% total increase in 2024 for Utah drivers.
The Insurance Information Institute (Triple-I) has several recommendations for lowering auto insurance costs for drivers feeling financial stress. Its top two pieces of advice are to shop around and to compare multiple car insurance quotes.
Triple-I also recommends drivers bundle insurance policies, consider what discounts they might be eligible for, maintain a good credit history, and raise their deductible — if they can set aside money in case of a claim. The organization also advises policyholders to reach out to their agents about the best ways to cut costs.
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