Is Car Insurance Cheaper In Utah?
Is auto insurance more affordable in Utah?
In a word, NO.
You may have noticed insurance across the board and especially auto insurance has gone up markedly the past few months. Folks are feeling the pinch as an insurance policy that used to cost maybe $100 a month is now closer to $200.
According to Leif Olsen at Wallethub.com, "The average cost of car insurance in Utah is $140 per month, or $1,677 per year, which is more expensive than the national average of $117 per month."
So what gives?
According to Nerdwallet, "Everything has gotten more expensive since 2021. Gas prices passed $4 per gallon for the first time in 15 years and peaked at more than $5 per gallon. Food prices climbed 11.4% in 2022 compared to 2021. And auto insurance rates have increased 17.1% over the past year, according to the U.S. Bureau of Labor Statistics’ consumer price index."
Nerdwallet also points to the fact that cars are becoming more and more advanced.
"Part of that increase is because cars have become more advanced, with features like backup cameras and anti-lock brakes. And more advanced cars mean more expensive car repairs: Vehicle repair costs were up almost 20% this May compared to the previous year, according to the consumer price index."
“It seems so much worse because it is much worse than we've seen in a long time,” says Douglas Heller, director of insurance at the Consumer Federation of America. After the pandemic caused a spike in inflation, insurers had to reassess their pricing.
Here are some tips to help you save (courtesy LibertyMutual.com):
1. Increase your deductible
Depending on your insurance provider, paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in, in the event of an incident) is typically a quick and easy way you can make your car insurance payments less expensive.
You may be able to do this directly online or through your insurance company's mobile app. Keep in mind you need to be prepared to pay the deductible amount yourself if you get into an accident. Make sure you have enough savings set aside to cover your deductibles to be safe.
2. Double check what discounts you qualify for
Research what discounts are offered by your insurance company to make sure you're getting the best price on your car insurance.
Common discounts to lower your auto insurance1
- Buying your policy online
- Enrolling in preferred payment options such as automatic payment
- Bundling you car insurance with your home insurance or multiple vehicles
- Participating in a safe driving program like RightTrack®
- Having advanced safety and anti-theft features in your car
- Having an energy efficient car
- Being a good student or being away at school for teens or young drivers
- Being an active, retired, or reserved member of the military
Some companies may even offer discounts for things like parking in a garage (especially if you live in a high-theft area) or how much you drive.
3. Shop around for car insurance
Be sure to get several quotes online, or even from a local insurance agent.
Keep in mind that the cheapest insurance isn't always the best. Focus on the coverage you need and make sure you're getting quotes that reflect that. If you think a cheap car insurance quote is too good to be true, it likely is.
If you find a good deal, you'll want to learn more about how to switch car insurance companies.
4. Maintain a good driving record
Safe drivers always save with Liberty Mutual. In addition to protecting yourself and others on the road, it pays to drive safe.
Always avoid speeding, getting into accidents, and other driving incidents. Not only do you prevent expensive speeding tickets or other moving violation costs, you also help keep your insurance rates lower by proving you're a less risky driver.
Additionally, if you have a claims-free or violation-free history, you can receive additional discounts.
5. Sign up for a safe driving program
Don't have the best driving record or got into an accident recently? There's always room to improve. Regardless of your driving record, you can demonstrate your safe driving habits with a safe driving program.
6. Take an accident prevention course
Driving courses are not just for new drivers. Liberty Mutual offers a discount to policy holders in certain states who complete a qualified accident prevention driver course. Some courses can even be completed online.
7. Explore payment options
If you can be flexible with your payment methods, you could save on your car insurance premium.
Liberty Mutual offers a discount if you pay for your policy with one or two annual payments. You can also save if you elect to pay with a preferred method, such as linking a bank account.
Another option is to go paperless for your account statements and communication - you'll save on your policy and help the environment. It's a win-win.
8. Improve your credit score
What does my credit score have to do with my car insurance? In some states, a credit check may be part of your risk assessment by insurance companies.
Sometimes people with higher credit scores get lower insurance rates because it correlates to making responsible decisions when driving.
If you want to start improving your credit score, be sure to pay your bills on time every month, decrease your credit utilization rate (the amount you spend compared to your total line of credit amount), and make sure the information on your credit report is accurate – you can dispute anything that is not correct.
9. Do you work from home or only drive a few miles a day?
If you work from home, use public transportation to get to work, or have a short commute (lucky you!), you may qualify for low mileage discounts.
10. Review your current policy
If you've had the same policy for a few years, or maybe several, it might be time to review and see if your coverage needs have changed.
One thing to consider is the older your vehicle is, the less it costs to replace in the event of an accident. This means you might be able to lower your limits associated with vehicle repair, like comprehensive and collision.
If you've paid off or owe a minimal amount on any loans you have on your vehicle, you may not need gap insurance. If you lease or finance your vehicle, you're likely required to have a certain level of comprehensive and collision coverage. If you own your car, you may be able to lower or opt out of those coverages.
You might even qualify for additional discounts since you started your policy. If you turned older than 25, got married, or purchased a home, be sure your policy reflects that information - these are all factors that might help you save on your premium.
11. Research insurance costs before deciding on what car you want
One of the factors that affects your insurance rate is the vehicle you drive, as some are more expensive to insure than others. Think: a speedy sports car versus a safety-first minivan.
If you're in the market for a new vehicle, it's important to consider how much it will cost to insure the vehicle you buy. And it's helpful to know that it's not always the cheapest vehicles that are the cheapest to insure.
When choosing your vehicle, keep in mind that the more expensive it might be to repair, the more likely it is that your insurance rate might reflect that. So, adding features like upgraded trim, cutting-edge audio systems, and extra technology could add up.
Vehicles that tend to have the lowest insurance rates on average2
- Subaru Outback
- Jeep Wrangler
- Honda CR-V
- Subaru Forester
- Ford Escape
- Ford F-150
12. Look into ways you can save with teen drivers
Adding a teen driver to your policy will most likely make your insurance more expensive. Luckily, there are some ways to prevent your costs from increasing too drastically.
Lots of insurance companies offer discounts for teens who get good grades, are away at school, or choose a higher deductible.
13. Bundle your policies
Combining your home and auto policies to one insurance carrier is one of the easiest ways to lower your insurance rate.
Regardless of whether you own or rent your home, you can bundle it with your auto policy to save. In addition to a discount, you'll save time when you only have one account to manage with one login, less payments to keep track of, and more.
LOOK: Here are 25 ways you could start saving money today
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