Senate Bill 105
Utah Law previously only required Utah drivers to purchase liability coverage with a minimum limit of $25,000 per person and $65,000 per accident. These means that an individual’s personal injury claim cannot exceed more than $25,000.Senate Bill 105, proposed by Stephen Urquhart, increases the current state minimum of liability coverage from $25,000 to $50,000. This mandatory insurance increase applies to personal injury claims that are resolved by arbitration or mediation. Senator Urquhart and supporters feel that these changes are necessary and will have immediate affects for insurance companies, Utah residents and victims of Utah accidents. Deseret News reports that SB 105 is awaiting the governor’s signature as the bill was passed by both the House and the Senate on February 26, 2010.
Liability Coverage Issues
Several Utah residents were worried about how much the additional insurance coverage requirement is going increase their monthly auto insurance premiums. Personal injury attorney Kenneth L. Christensen addressed this issue in his February 2010 Newsletter of the Christensen Law Firm, PLLC.
“I have encountered far too many cases where the car accidents or motorcycle accidents have caused life-altering injuries but here was not enough insurance to provide proper compensation,” states Mr. Christensen.
If you are in an accident in Utah, the negligent driver’s liability insurance will be responsible for paying your damages. However, often times the injuries from a car, bicycle, or motorcycle accidents are serious and the at-fault driver’s insurance limits may be insufficient to cover all of the damages. At that point, your personal car insurance becomes applicable. He recommends that Utah Residents increase their auto insurance to at least $100,000 per person and $300,000 per accident in bodily insured, uninsured (UM), and underinsured (UIM) coverage. It is vital to have good insurance to financially protect yourself and your family.
On average, adding $100,000 per person and $300,000 per accident for UM motorist coverage and UIM motorist coverage to your policy only increases monthly premium by about $3.29.
A total of 8 motor-vehicle insurance related bills were proposed during the Utah 2010 Legislative session. They include:
- HB39 and HB39S01, Insurance Related Amendments
- SB 62: Motor Vehicle Insurance Coverage Amendments
- SB 70: Motor Vehicle Liability Amendments- Minor Driver Liability
- SB 105 and SB 105S01: Motor Vehicle Accident Arbitration Amendments
- SB 225: Motor Vehicle Insurance- Named Driver Exclusion
- SB 253: Uninsured Motorist Identification Database Program Amendments