Car insurance (also known as auto insurance) is an essential part of owning a vehicle. It is your financial safety net when you find yourself in a car accident. Even if you’re a careful and skilled driver, you’re still likely to find yourself in an accident at some point in your life. A study found that the average person will be involved in not just one car accident but multiple during their lifetime.
Regardless of whose fault an accident is, you don’t want the headache of dealing with the sudden financial impact of a car accident on your own. Additionally, in the state of Utah, if you are operating a vehicle without insurance, your vehicle’s registration and your driver’s license may be suspended and you’ll be liable for large fines. All of these negative consequences can be avoided with auto insurance. Auto insurance can cover repair expenses and even medical bills. It can also help when your car breaks down.
Choosing and buying insurance can be stressful. There are many local auto insurance options available in Utah, and each car insurance company has different prices and options. Having a local insurance agent help you, who knows the ends and outs of auto insurance, will help you quickly find the best policies for you. At Ipsen Insurance, we’re dedicated to helping you find an affordable car insurance policy that’s right for you.
Types of Car Insurance
There are many types of car insurance and they all depend on what coverage options you want to include in your policy. You are responsible for which optional coverage options you want to include. While most insurance includes specific coverage, there is a degree of flexibility to them. You can opt to combine many into a single insurance plan. Here are some of the most popular types of car insurance policies that we can help you with:
Uninsured Motorist Coverage or Underinsured Motorist Insurance
This part of your auto insurance policy will cover any medical or vehicular repair in case you get involved in an accident with an uninsured driver. It will protect you if the other party doesn’t have enough insurance to cover all the costs. Many drivers encounter an “uninsured motorist” or an “underinsured driver” who has limited coverage limits. By getting this type of coverage, you ensure that you will be covered financially even if the person who hits you doesn’t have auto insurance.
Those who work for a rideshare service are often required to have this insurance. Services like Lyft or Uber may offer some level of coverage but they often opt for the cheapest car insurance for their drivers, which may not cover rideshare drivers in all circumstances such as when they’re waiting for a passenger. Since rideshare drivers spend so much time on the road it increases their risk of accidents so this additional insurance is often required.
Collision Insurance and Comprehensive Coverage
With collision coverage, the insurer provides the driver with the money for repair costs if the car collides with an object or another motor vehicle. It pays for the repair costs of vehicles as well as the fence, sign, or other object that the driver’s vehicle has damaged. It’s insurance that applies even if the holder is the one at fault. It’s often a part of insurance plans for cars still under loan.
Comprehensive insurance will cover everything outside of the control of the policyholder. A lot of other factors can do significant damage to the vehicle. Here are some examples:
- Accidents involving animals
- Extreme weather conditions
Personal Injury Protection and Medical Payment Insurance
PIP coverage handles personal injury costs, including losses in future earnings. It covers medical expenses and can cover funeral costs in the case of death. If an injury from a car accident prevents you from working or taking care of your family for a period of time, your insurance provider will provide you with money to keep you and your family afloat. PIP applies regardless of who is at fault.
Medical payment insurance will cover the policy holder’s medical expenses and are claimable no matter who is at fault. The coverage may also extend to passengers injured during the accident.
Some insurance plans include roadside insurance, giving access to free help. It pays for towing and labor. You can contact the company’s partner shops to help with a battery jump or any other minor repairs if the car breaks down. It includes help with flat tires and transport to the nearest repair shop.
Over time, the car’s value decreases with continuous use. At times, this decrease happens at a faster rate compared to the regular loan payments. Gap insurance helps cover the difference as extra protection. It is usually insurance required when you are leasing a vehicle. The dealer will purchase the gap insurance, and part of the payment is in the leasing cost.
Other dealers offer a car replacement insurance payment which acts similar to gap insurance. The insurance will pay for the value of a new car in case the other gets totaled.
With liability insurance, the insurance company covers the cost of any damages or loss that occurred in an accident. Nearly all states require that this insurance be included in any policy. It covers both property damage and physical injuries if you are the one at fault in an accident. Liability Insurance coverage extends to a certain financial limit. Afterward, the holder will be responsible for the remaining balance.
Rental Reimbursement Insurance
Pays for the rental costs while the car is undergoing any repair. It is included in a policy that covers repair costs as well.
Full Glass Insurance/Coverage
Some policies have coverage to repair and replace any glass damaged during the car’s use. It will pay for all associated costs fully.
Since none of us is perfect, it’s possible that a car accident may be our fault or at least a courtroom may rule that an accident is our fault. If this is the case then your car insurance premium will increase. But, if you qualify, accident forgiveness will keep your car insurance rate from skyrocketing after your first accident, keeping your auto insurance premium at its current rate.
Utah Required Coverage
All fifty states require insurance or some form of financial responsibility. In Utah, all Utah car insurance plans must follow the minimum coverage required by state laws. Each Utah driver must have a policy that meets the following minimum coverage requirements:
- Uninsured and underinsured: The insurance will cover a part of the damage caused by motorists who don’t have enough to pay for damages. It will protect against motorists who don’t have insurance to pay for the damages. In Utah, the minimum is $25,000 per person and $65,000 per accident.
- Personal injury protection (PIP): The insurance must have a minimum that covers the medical expenses. It will apply no matter who is at fault for the accident. The PIP in Utah is at least $3,000 per accident.
- Liability: The insurance must cover the expenses of injuries and property damage. In Utah, the minimum for property damage is $15,000 per accident. In the case of bodily injury, the state-mandated minimum for bodily injury liability is at least $25,000 per person and $65,000 per accident.
All our insurance plans at Ipsen take into consideration this minimum. We follow all regulations in Utah and offer you the best packages that make sure you have the right coverage.
What factors affect car insurance rates?
There are many factors that affect how much drivers will have to pay for car insurance. An inexperienced or young driver, such as someone who just received their learner’s permit will have higher rates. If you have a speeding ticket or multiple on your driving record that can result in higher insurance rates. Since the odds of these drivers being in a car accident is higher they are likely to pay more for car insurance.
Finding the Best Auto Insurance in Utah
Even similar policies may have differences depending on the preferences of the policyholder. Knowing the types of insurance will help you decide what you want to include in your policy. It pays to have additional protection to give you peace of mind. You’ll drive better knowing that you and your family will have coverage in any unexpected event.
Ipsen Insurance is a trusted local car insurance broker helping Utah residents find personal and commercial auto insurance. A car insurance agent at Ipsen Insurance will help you create a customized insurance plan tailored to your circumstances and preferences. Don’t let searching for car insurance stress you out. Our car insurance agents will answer any questions you have, sort through the dozens of insurance companies and policies out there, and look for auto insurance discounts for you. Contact us today to get a car insurance quote and to learn more about our services.