How Much Does Insurance Go Up After an Accident in Utah?

The moments after a car accident are filled with anxiety—not just about immediate concerns like vehicle damage or injuries, but also the looming financial impact. Depending on the circumstances of the collision, your insurance premiums will almost certainly increase. 

This financial consequence can add significant stress during an already difficult time, especially when you are trying to recover from the collision itself. What makes this situation particularly frustrating is the uncertainty: you do not know exactly how much your rates will jump or how long you will be paying these higher premiums. Our St. George car accident attorneys are here to explain the impacts of an accident.

What Are Utah’s Car Insurance Requirements?

Utah operates under a no-fault insurance system, which means your Personal Injury Protection (PIP) coverage pays for medical expenses regardless of who caused the accident. All Utah drivers must carry minimum insurance coverage that includes:

• $3,000 in PIP coverage
• $25,000 per person for bodily injury liability
• $65,000 per accident for bodily injury liability when multiple people are injured
• $15,000 per accident for property damage liability

These requirements apply to all Utah residents and non-residents whose vehicles have been in Utah for at least 90 out of the previous 365 days. Maintaining continuous coverage is mandatory throughout your vehicle’s registration period. 

Although these minimums satisfy Utah’s legal requirements, they may not provide adequate protection in serious accidents. You will be personally responsible for any remaining damages after these limits are exhausted, leaving you financially vulnerable. 

Will an Accident Always Raise Your Insurance Rates?

Unlike other states that follow a fault-based system, Utah does not automatically protect you from insurance rate increases if you were not at fault for the accident. Instead, your insurance company will assess your situation on a case-by-case basis and determine whether your monthly payment will go up and by how much.

If you have an excellent driving record with no previous incidents, you may experience minimal impact on your rates. Many insurance companies also offer accident forgiveness programs that protect you from the worst rate increases after your first accident.

Your insurance company’s policies also play an important role. Some insurers have more forgiving policies and may not increase rates for certain types of accidents where you clearly were not at fault. Your best approach is to contact your insurance provider to understand their policies regarding rate increases after an accident. 

How Much Will Your Monthly Payment Increase After an Accident?

The extent of your rate increase depends on numerous factors. For example, the severity of the accident has a major impact on potential rate hikes. Accidents involving injuries or fatalities typically result in higher increases than minor fender-benders with property damage only. Additionally, the terms of your specific insurance policy will determine the exact increase you will face.

Your driving experience and history can also influence this decision. New and young drivers face substantially higher increases than experienced drivers with clean records. If you have been accident-free for years, you will likely see smaller increases than someone with a history of previous accidents.

The specific circumstances of your accident matter as well. Some situations that may protect you from large rate increases include:

• Being rear-ended while legally stopped
• Having your lawfully parked vehicle damaged
• Being the victim of a hit-and-run, as long as it is reported within 24 hours
• Accidents where the other driver violated traffic laws and you did not
• Damage from falling objects, animals, or other non-collision sources
• Cases where you have received direct compensation from the at-fault party

Will Insurance Rate Increases Ever Go Down?

The good news is that accident-related premium increases are not permanent. After an accident, you will see premium changes reflected at your first policy renewal. These higher rates typically last for a few years before gradually decreasing, assuming you maintain a clean driving record during this period.

By the four-year mark after your accident, your rates should return to levels comparable to your pre-accident premiums. While the first year after an accident usually brings the steepest increases, rates generally improve with time. Most insurance companies stop considering accidents in their rate calculations after five years, even if you switch to a different insurer.

Are There Ways That You Can Minimize Insurance Rate Increases?

You can take several proactive steps to mitigate the financial impact of a car accident on your insurance rates. Shopping around for new insurance quotes may reveal better options with companies that penalize accidents less severely. Different insurers weigh accidents differently in their pricing algorithms, so obtaining multiple quotes and switching to the lowest-cost provider could help reduce your monthly premium.

If you prefer to stay with your current provider, consider adjusting your coverage. Increasing your deductible can lower your premium; however, this means you will face higher out-of-pocket costs if another accident occurs. Similarly, reducing certain aspects of your coverage might lower your monthly costs, though this approach carries its own risks.

Focus on maintaining an excellent driving record going forward. Each year of accident-free driving improves your record and helps offset previous incidents. Your credit score can also impact insurance rates; working to improve your credit may help reduce premiums over time, as insurers often view good credit as an indicator of responsible behavior.

What Should You Do After a Car Accident in Utah?

Taking the right steps immediately after a car accident can protect both your physical and financial well-being. Following proper procedures may also help minimize insurance complications.

After a car accident in Utah, you should:

• Ensure everyone’s safety and call 911.
• Move your vehicle to a safe location if possible.
• File a police report with the responding officers.
• Exchange information with all involved parties
• Document the scene with photos and videos.
• Ask any witnesses for their contact information.
• Seek medical attention, even for seemingly minor injuries.
• Avoid discussing fault or making statements that could be used against you.
• Keep detailed records of all accident-related expenses and communications.
• Contact a Utah car accident attorney who can represent your case.

A personal injury lawyer in St. George can provide invaluable support during this time. They can help you navigate the complex insurance claim process and advocate for fair compensation for your injuries and losses. They can also identify when insurance companies offer inadequate settlements and fight for your rights when disputes arise. If you’ve been involved in a car accident in Utah, contact a car accident attorney as soon as possible to discuss your legal options.