Curently in the Utah and also in the rest of the United States, all car owners are required to have their cars insured continuously. And though the insurance coverage amount will be greatly differs, the average amount required by the Utah auto insurance laws is about $25,000/$50,000 (meaning up to $25,000 per victim with a cap of $50,000 for the entire accident) and also $10,000 for any property damages. It seems that these minimums are predominately universal, however the DMV from each state can always set their own standards on this.
When you are in an unfortunate situation and have an accident with your car, as long as your policy is current and valid of course, and hasn’t lapsed, the insurance company will cover all the expenses of the accident depend to your level of coverage. However, we must know that if the insured has a lapse in coverage due to non-payment or for any other reasons the insurance company is not responsible for this and the driver, it’s you, is 100% liable for the expenses of the accident.
To make sure that vehicle owners stay insured the government is cracking down on those who do not have insurance. These punishments are set forth by each state’s DMV, vary depending on the state. If you are in an accident and you have allowed your insurance to lapse, what could happen? The punishments can be very severe.
If you live in Utah, you are forced to pay 100% of the damages, and your driver’s license is suspended until you do so. Your driver’s license can be revoked for up to six years! In Michigan, one with insurance is only liable for up to $500, while those who do not have insurance are required to pay for the damages in full.
If you live in Texas, proof of insurance is required at the time you get a drivers license. If you are caught without proper insurance coverage you will be slammed with an initial fee of $350. The second time you are caught you receive a fee of $1000 and your vehicle can be taken away for up to six months. If you do get in a wreck you are held responsible 100%, no exceptions.
In California the liability limits are much lower than most other states, yet they treat driving without insurance very harshly. If you are caught without current insurance, your driver’s license will likely be taken away for up to a year. You car can be impounded and your registration will be suspended until you have proof of current insurance. Like other states, without insurance you are fully responsible for all damages in a wreck.
It is crucial that you have enough insurance, and that you don’t let it lapse. It is too much of a gamble to go without insurance, because sooner or later you will end up paying for it much more than the cost of coverage. Call your Insurance Agent to make sure your insurance is current and valid. Before buying a car, check with them to make sure that you have adequate insurance that you will be able to afford the monthly payments.