Insurance

Utah teens driving on their learner’s permits with a licensed adult supervising them do not need to have their own insurance policies. Once they start driving on their own, however, teens need insurance, so you will want to explore options to keep these costs reasonable.

Saving Money on Car Insurance

Because the risk of a crash is significantly higher for young drivers, particularly during the first year of driving, your teen’s insurance rate likely will be higher than your own. Here are a few strategies to help you reduce insurance costs both now and once you add your teen driver.

  • Raise deductibles to lower premiums. Ask your auto insurance representative how much you could save by increasing your deductible. If you file a claim after raising your deductible, you’ll pay a larger share of the costs.
  • Investigate discounts. Many insurers offer discounts for students with a “B” or higher grade average and for teens who complete driver education or defensive driving courses.
  • Share vehicles. How you classify your new driver—as the main or an occasional driver of one vehicle, for example, will affect auto insurance premiums, so consider sharing vehicles.
  • Just say “no” to sports cars and SUVs. TThe kind of car your teen drives can impact safety. Many experts agree that mid-sized sedans are the best choice for teens. Small cars don’t offer as much protection in crashes, sporty cars may encourage speeding or recklessness, and SUVs and pick-up trucks are more difficult to maneuver and more likely to have roll-over crashes.
  • Practice, practice, practice. Now is the time to drive a lot with your teen under varied conditions so there will be fewer surprises (and potential crashes) when you’re no longer in the vehicle.
  • Be involved. Research shows that teens with more involved parents get fewer tickets and engage in less risky driving. Avoiding tickets and crashes will help keep your insurance rates down. A parent-teen driving agreement can help you set rules and stay involved.

Car Insurance Requirements in Utah

All Utah drivers are required to carry bodily injury and property damage liability insurance to help pay for damages they cause in an auto accident. The minimum amounts drivers are required to carry are: $25,000 per person and $65,000 for two or more persons for bodily injury liability and $15,000 for property damage liability. Typically this is shown on your policy as 25/65/15. Utah’s no-fault law also requires you buy a minimum of $3,000 in Personal Injury Protection (PIP) coverage. PIP is a broad term for the coverage that will pay for your medical expenses in case of a crash.