SALT LAKE CITY — Car insurance is becoming more expensive for many drivers in Utah. The cost has gone up sharply in recent years. Experts say it will likely increase again this year. But why is this happening?
One major reason is that accidents have increased. Since COVID-19 began, the number of crashes in Utah has risen significantly. In 2020, there were 51,629 crashes reported by the Utah Department of Public Safety. Last year, that number jumped to 61,648 — almost 20% more.
At the same time, car insurance prices have climbed. According to the U.S. Bureau of Labor Statistics, insurance costs rose by nearly 55% over the past few years.
Insurance expert Leslie Kasperowicz, executive editor at Insurance.com, explained, “There are more accidents because more people are on the road.”
But rising accidents are not the only problem.
Other Factors Driving Costs Up
The price to repair cars has grown by 40% in five years. Also, the average cost of a new car has increased by 26%, according to Kelley Blue Book data. These two factors make insurance claims more expensive.
“Insurance companies need to collect enough money to cover these higher claims,” Kasperowicz said.
Tariffs on imported cars and parts are also adding to costs. The previous U.S. administration placed a 25% tariff on imported cars and parts, plus tariffs up to 50% on steel and aluminum. These tariffs increase the price of parts, which eventually leads to higher insurance rates.
Weather is another concern. Extreme events like hurricanes, flooding, hailstorms, and wildfires have become more common. These disasters cause damage to many vehicles, increasing the cost of claims and driving up premiums.
How Drivers Can Save on Insurance
Despite rising costs, there are ways to reduce your insurance bill.
Kasperowicz recommends shopping around for quotes. Different companies charge very different rates, so getting multiple offers can save money.
Raising your deductible — the amount you pay out of pocket before insurance covers the rest — can lower premiums, but it means paying more if you have a claim.
Look for discounts for safe drivers, students, first responders, and more. “Many people assume insurance companies will apply these discounts automatically, but that is not always true,” Kasperowicz warned.
Some insurers also offer driver monitoring programs. These use apps or devices to track driving habits like speed, braking, and mileage. While these programs can lower rates, they raise privacy concerns. Kasperowicz advises drivers to carefully review what data is collected and how it is used before signing up.
