When insuring your vehicles, the search for the best car insurance in Utah isn’t just about finding the lowest price. While affordability is important, other critical factors can make a world of difference in the quality of coverage and service you receive. When it comes to commercial auto insurance, the stakes are often higher, and the coverage needs are more complex.
According to TRIP, 37% of Utah’s major roads are in poor or mediocre condition. This costs motorists a staggering $1.8 billion annually, or an average of $803 per driver. This includes additional repairs, accelerated vehicle depreciation, increased fuel consumption, and tire wear. Moreover, traffic crashes in Utah imposed a total of $4.2 billion in economic costs in 2023 alone.
The risks associated with driving on these roads can significantly impact the bottom line for businesses that rely on vehicles for daily operations. With the right insurance coverage, companies can protect their assets against the financial burden of vehicle damage, accidents, and other road-related hazards. This ensures they remain resilient in the face of Utah’s challenging driving environment.
For businesses, the right commercial auto insurance can be the difference between a minor inconvenience and a significant financial setback. It’s important to work with a carrier that offers customizable and extensive coverage that aligns with your specific needs.
Continue reading to understand the steps to finding the best car insurance in Utah, with expert tips from Julie Cooper, a territory sales manager for Utah at Central Insurance.
Unique Risks on Utah Roads
Utah’s roads, like any state, come with common and unique risks. In rural areas, wildlife encounters, especially with deer, are frequent. Distracted driving is an issue everywhere but can be more common on less busy roads, where drivers may feel safer multitasking. Winter conditions add another layer of danger. Snow and ice make driving especially hazardous on rural roads that may not be as regularly maintained.
While these risks are more frequent in rural settings, urban roads face their own challenges. Road construction is on the rise, driven by Utah’s booming population and economic growth. As more people hit the road, Cooper advises residents to prepare for increased construction and changing traffic patterns, especially in high-density areas like Salt Lake City. The risks only grow when factors like distracted driving and bad weather, combine with heavy traffic.
Safe driving and regular vehicle maintenance are your best defenses. However, insurance is there to help protect you and your business from unexpected financial strain.
Learn More: Insuring Your Business in Utah.
Understanding Your Insurance Needs
Before choosing the best car insurance in Utah, it’s crucial to understand the distinct differences between personal and commercial auto insurance. Knowing your specific needs will help you select a policy that offers the right level of protection.
Utah law mandates that all auto liability insurance policies provide the following:
$25,000
per person for bodily injury
$65,000
per accident for bodily injury
$15,000
per accident for property damage
You must meet these minimums to avoid penalties or fees. However, in Cooper’s experience, they are usually inadequate in an accident, revealing the importance of auto insurance that goes beyond Utah’s minimums.
Did You Know? Utah’s no-fault law also requires you to buy a minimum of $3,000 in Personal Injury Protection (PIP) coverage. Utah is a no-fault state, meaning that if you’re injured in an auto accident, you would file a claim with your own insurance company to pay for related medical costs, regardless of fault.
Personal Auto Insurance
Personal auto insurance covers individuals who use their vehicles for personal, non-business-related activities. This type of coverage typically includes liability protection, collision coverage, and uninsured motorist protection. These components financially protect you if you’re involved in an accident, whether it’s your fault or caused by another driver.
Commercial Auto Insurance
On the other hand, commercial auto insurance is tailored for businesses that use vehicles in their operations. This type of insurance covers the vehicles and their drivers, passengers, and cargo.
Given the poor condition of many of Utah’s roads, the risk of vehicle damage and accidents is higher for commercial vehicles that spend more time on the road. Comprehensive commercial auto insurance goes beyond basic liability coverage, offering protection against a wider range of risks. This can include coverage for employee injuries sustained while driving a company vehicle, protection against damages caused by uninsured motorists, and even coverage for specialized equipment installed in your vehicles.
Did You Know? Central also offers a special Auto Dealers Insurance Policy for auto, motorcycle, truck, and equipment dealers or trailer dealerships. This policy provides additional coverage for customers’ vehicles while in your care, custody, or control.
For businesses, the stakes are higher, and the potential costs of an accident or vehicle breakdown can be greater. Cooper emphasizes choosing the right commercial auto insurance policy by finding coverage that aligns with your specific business needs and ensures adequate protection against the unique risks of operating vehicles in Utah.
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Five Best Car Insurance Coverage Types for Utah Businesses
Below, Cooper outlines the five coverages your comprehensive commercial auto insurance should include with real-world examples.
- Property Damage Liability Coverage:
This coverage is the foundation of any auto insurance policy, covering property damage you or your drivers may cause to others. Sufficient liability coverage is vital in Utah, where challenging driving conditions heighten the risk of accidents.Your business may consider another type of liability coverage: Hired and non-owner auto liability coverage. This policy applies when your business uses vehicles it doesn’t own for business purposes. This includes rented, leased, or employee-owned vehicles.
“If you send an employee out to get something for the job and they’re driving their own vehicle, your business still has an exposure because they’re completing work duties. That’s where this coverage can step in,” Cooper explains.
- Real World Example: When a company driver completes a backroad delivery, he swerves off the road to avoid hitting a black bear. The van is severely damaged when it comes into contact with another car. Without liability insurance, the cost of repairs for the van and the other vehicle would come out of pocket.
- Bodily Injury Liability Coverage:
This coverage pays for medical expenses, lost wages, and legal fees if your business is found responsible for injuries to other people in an accident. Accidents can lead to medical bills and lawsuits. This policy can help your business cover these costs without jeopardizing your financial stability.- Real World Example: If, in the above example, the other driver is found to have a minor injury due to the accident caused by the company driver, the business could be responsible for their medical bills.
- Comprehensive Auto Insurance:
While collision coverage can pay for damages to your vehicle in an accident, comprehensive auto coverage may protect against non-collision-related incidents. This includes theft, vandalism, or damage from wildlife.- Real-World Example: After parking a work van in Salt Lake City for a job, a contractor finds his windows smashed and valuable equipment stolen. Urban areas with high tourist traffic will experience higher theft rates, making comprehensive coverage crucial. This policy may help cover the cost of repairs and the stolen items.
- Uninsured/Underinsured Motorist Coverage:
Cooper highlights this coverage to protect your business from uninsured or underinsured drivers. It ensures you remain covered even if the other party lacks sufficient insurance. If another driver cannot fully compensate for the damages, this policy may help your business avoid bearing the full cost.- Real-World Example: An employee driver is rear-ended by another driver. The at-fault driver has the minimum liability insurance, which doesn’t fully cover the employee’s medical bills and car repairs. The policy would help cover the remaining expenses with UIM coverage, so the business is not left to payout of pocket.
- Specialized Coverages:
Depending on the nature of your business, you may also need specialized coverages. “Businesses that operate food trucks or similar mobile units should consider coverage for mobile equipment. This is to protect against damage or loss during transit or while operating on-site,” Cooper says. “Contractors might have mobile equipment that is permanently attached to their vehicles, which can be added to an inland marine policy.”Getting in touch with an insurance agent is a great way to better understand the coverage your business needs. An agent can help you determine what specializations you require. This is based on your class of business, territory, radius of operations, and the size, age, liability limit, and new cost of your vehicle(s).
Learn More: Four Tips to Protect Your Business Auto Insurance Rates
Finding the Best Car Insurance in Utah
When searching for the best car insurance in Utah, especially for commercial vehicles, it’s essential to look beyond price. Consider the overall experience a provider offers. Exceptional customer service can make all the difference when you’re dealing with routine inquiries or filing a claim after an accident.
While well-known carriers may seem like the obvious choice, lesser-known providers can often offer personalized service and specialized coverage that better meets your needs. Look for reviews, ask for referrals, and consider the company’s track record with claim processing. Cooper recommends prioritizing a provider with a strong a strong reputation for reliability to ensure they support you when it matters most.
Did You Know? An AM Best rating measures an insurance company’s financial strength and ability to meet its ongoing insurance policy and contract obligations.
Finding the right insurance provider is about aligning your needs with a company that values quality over quantity. They should deeply understands your business, your industry, and the challenges you face. Don’t just settle for the lowest price. Focus on finding a provider that offers great coverage, excellent customer service, and a reputation you can trust. Take the time to meet with an agent to evaluate different providers, ask the right questions, and ensure you get the protection your business needs.
The Central Difference
At Central Insurance, people come first. We provide best-in-class customer service to give you peace of mind during challenging times. Central supports our commercial auto policyholders with loss control resources to help you mitigate risks before they happen. We also offer 24/7 support and e-options for our insureds to report and pay claims easily via the myCentral website or mobile app.
“If you are new to Utah or starting a new business venture, Central can help you get set up with the right coverage and loss control programs,” Cooper says. “Agents who work with us have access to excellent tools and resources to assist our insureds.”
Our personal and commercial auto policies protect you in an accident, giving you confidence on the road. This allows you to focus on your recovery rather than the financial repercussions.
