Tips for Utahns to save money on rising car insurance premiums

by Cristina Flores, KUTV

Wed, January 31, 2024 at 9:01 PM Updated Wed, January 31, 2024 at 10:42 PM

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- topics:
- Car insurance
- Premiums
- Utah
- Costs
- Coverage
- Savings
- Technology
- Rates
SALT LAKE CITY (KUTV) — Insurance premiums for vehicles surged in 2023 and show no signs of going down in the new year.

According to an analysis by Bankrate.com, the average cost of a full-coverage policy in the U.S. rose from $2,014 in January 2023 to $2,395 by the end of the year.

Courtney Peterson, like many others, expressed dissatisfaction with her latest car insurance bill, saying, "It was like 47 or 49 dollars a month," she said of the monthly increase.

Peterson is not alone in feeling the pinch. Utah Insurance Commissioner John Pike noticed a spike in his car insurance bill and said given the rate increases of last year, car insurance rates are unlikely to go down in 2024.

This increase can be attributed to various factors, including high-tech cars.

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• Why your gas bill is going up so much this winter "It seems most of our cars have sensors, cameras, or radar," noted Pike, emphasizing that while these technologies make cars safer, they significantly contribute to higher installation, repair, and replacement costs in case of a crash.

The rising costs extend beyond vehicle repairs, with the expenses associated with healthcare and treating injuries resulting from crashes also on the uptick.

For those eager to trim down their insurance bills, a careful review of both the bill and coverage is recommended.

In Utah, drivers are mandated to have insurance covering property damage, bodily injury for the other party, and personal injury for individuals in the insured vehicle.

One strategy to lower monthly payments is opting for a high-deductible plan, but experts caution that drivers must be financially prepared to cover the deductible in the event of a crash.

"It's up to the person to decide how much do they have in their savings that they can tap into in the event of an accident," said Pike.

Reconsidering optional coverages like collision and comprehensive coverage, which respectively cover damage in a crash and non-collision scenarios like theft, could be a viable money-saving option. However, it's crucial to weigh the potential costs against the benefits. Do you have the money to buy a new car if it's stolen? Or to fix a repair that's not caused by a crash?

Opting out of collision and comprehensive coverage could make sense if you have the money to absorb that risk and if your car is old. But if your car is newer and if it's stolen, replacing it could be impossible for some.

If you are still making payments on your car, opting out of collision and comprehensive insurance isn't possible as most lenders require coverage.

For those motivated to maximize savings, telematics - allowing insurance companies to monitor driving habits - could lead to lower premiums.

Finally, reach out to insurance agents to explore potential discounts for good driving records or bundling policies.

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