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.
According to a recent study auto insurance rates rose from $1,810 in 2007 to $1,954 in 2008. There has not been a raise like this in price since 2003.
These changes in rate prices did not occur all at once. There was an average of only a $5 change in premium prices in the first quarter. Unfortunately this was followed by steep increases the following three quarters.
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.
These rate increases in 2008 have come at a bad time for many consumers. Unfortunately there are many without jobs right now, or those that are struggling to just get their bills paid.
Because of these financial difficulties there have been a high number of drivers who have let their insurance policies lapse because of lack of payment. When they are able to reinstate their policy their coverage rates will be higher. Add to this the fact that for those that need to file bankruptcy will now see a higher rate of coverage as well.
Part of the calculation of the insurance premium that will be charge to the driver is based on their credit information. Insurance providers will evaluate the risk that they will be taking by insuring the driver. This is done by seeing how timely they make their credit card payments and if they have opened and closed a number of bank or credit accounts.
According to a recent study auto insurance rates rose from $1,810 in 2007 to $1,954 in 2008. There has not been a raise like this in price since 2003.
These changes in rate prices did not occur all at once. There was an average of only a $5 change in premium prices in the first quarter. Unfortunately this was followed by steep increases the following three quarters.
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.
These rate increases in 2008 have come at a bad time for many consumers. Unfortunately there are many without jobs right now, or those that are struggling to just get their bills paid.
Because of these financial difficulties there have been a high number of drivers who have let their insurance policies lapse because of lack of payment. When they are able to reinstate their policy their coverage rates will be higher. Add to this the fact that for those that need to file bankruptcy will now see a higher rate of coverage as well.
Part of the calculation of the insurance premium that will be charge to the driver is based on their credit information. Insurance providers will evaluate the risk that they will be taking by insuring the driver. This is done by seeing how timely they make their credit card payments and if they have opened and closed a number of bank or credit accounts.
About the Author:
Steve Turner has a lot of experience with helping drivers to locate sufficient Utah Auto Insurance coverage. Utah Auto Insurance Coverage Steve Turner works with a variety of insurance providers and can therefore provide drivers with the best Utah Auto Insurance coverage at the most affordable price. Utah Auto Insurance Prices
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