Rising Car Insurance Costs in Utah Driven by More Accidents and Higher Repair Bills

Utah has experienced a significant increase in car insurance costs in recent years, driven by a rise in vehicle accidents and higher claim expenses. The Utah Department of Public Safety reported a 19.4% increase in annual crashes from 2020 to 2022, contributing to the surge in insurance claims. Concurrently, car insurance prices in the state have increased by over 54%.

 Rising repair costs are a major factor, with auto repair expenses climbing 40.2% over the past five years, coupled with a 26% rise in average new car prices, intensifying insurers' claim payouts. Tariffs imposed on imported vehicles and parts, including a 25% tariff on imported cars and parts and up to 50% on steel and aluminum, further inflate costs that eventually affect insurance premiums. Additionally, recent trends in severe weather events, including hurricanes, flooding, hailstorms, and wildfires, have led to more vehicle damage claims, adding pressure on insurance rates.

Despite these upward pressures, consumers have opportunities to mitigate costs by comparing quotes from different insurers, increasing deductibles, and seeking available discounts such as those for safe driving, students, or first responders. Some insurers also offer driver monitoring programs that can reduce premiums based on driving behavior data; however, such programs raise privacy considerations that consumers should review carefully before participation. Overall, the convergence of higher accident frequency, escalating repair and vehicle costs, tariffs, and weather-related damages are key contributors to the rising car insurance premiums in Utah.