Utah Auto Insurance rates have increased by the biggest margin ever in the last five years. There has been an annual increase of 8 percent from the year 2007 leaving Utah with the second highest jump in the country.
Rates have risen from 2007 of $1,810 to $1,954 in 2008. Since the year of 2003 there has not been this dramatic of an increase in auto insurance costs.
The rate increases did not happen all at once. The first quarter saw only an average of $5 increase in premium prices. The following three quarters did have a steep level of increases resulting in the dramatic overall changes.
Utah is not the only state that is seeing such dramatic increases in the cost of auto insurance coverage. Utah has seen an increase of rates of 10.2 percent; however Washington’s rates have risen by 10.5 percent.
Many consumers are having a hard time adjusting to these high increases. The year of 2008 has been difficult financially for many people as some are without jobs and many are struggling just to pay their bills.
Unfortunately this has resulted in some drivers allowing their auto insurance policy to illegal lapse because of lack of payment. When they are financially able to get coverage again, they will then be charged even higher rates because of there previous lapse. Those consumers that find themselves having to file bankruptcy will also see an extra large increase in their insurance premium.
Insurance providers use the driver’s credit information to calculate the rate that they are going to charge. If a driver has open and closed a number of bank or credit accounts, or has a record of being late on making payments will be seen as a higher risk to the provider and therefore will be charged a higher premium.
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