Utah Auto Insurance Coverage Prices
Utah Auto Insurance rates have increased by the biggest margin ever in the last five years. There has been an annual increase of 8 percent from the year 2007 leaving Utah with the second highest jump in the country.
In 2007 the average rate was $1,810 this has increased to $1,954 for the year of 2008. The auto insurance industry in Utah has not experienced an increase in rates like this since 2003.
These changes in rate prices did not occur all at once. There was an average of only a $5 change in premium prices in the first quarter. Unfortunately this was followed by steep increases the following three quarters.
Utah is in among the top 10 states to see the most dramatic rate increase in auto insurance last year. Washington was affected the most in a rate increase on average of 10.5 percent. Utah followed closely with an increase of 10.2 percent.
Many consumers are having a hard time adjusting to these high increases. The year of 2008 has been difficult financially for many people as some are without jobs and many are struggling just to pay their bills.
Unfortunately this has resulted in some drivers allowing their auto insurance policy to illegal lapse because of lack of payment. When they are financially able to get coverage again, they will then be charged even higher rates because of there previous lapse. Those consumers that find themselves having to file bankruptcy will also see an extra large increase in their insurance premium.
Insurance providers use the driver’s credit information to calculate the rate that they are going to charge. If a driver has open and closed a number of bank or credit accounts, or has a record of being late on making payments will be seen as a higher risk to the provider and therefore will be charged a higher premium.
