Driving without insurance is extremely risky and can have severe financial and legal consequences. In this blog post, we will discuss the importance of maintaining auto insurance coverage, particularly for Idaho, Utah, and Wyoming residents. We will also explain why having at least 300K in liability coverage is recommended and consider an umbrella policy for added protection.
State Requirements for Auto Insurance
All states except New Hampshire require auto insurance; even New Hampshire has certain circumstances where coverage is necessary. In Idaho, Utah, and Wyoming, drivers are required to have a minimum level of coverage that includes:
- Bodily Injury Liability
- Property Damage Liability
Each state has its specific minimum requirements, but it’s essential to remember that these minimums may not be enough to cover the financial burden in the event of an accident.
Consequences of Driving Without Insurance
Driving without insurance in Idaho, Utah, or Wyoming can result in severe penalties, including:
- License suspension
- Vehicle impoundment
- Possible jail time
In addition to legal penalties, driving without insurance can label you as a high-risk driver, increasing insurance premiums. For example, a study conducted in Utah showed that drivers with a lapse in coverage faced a 42% increase in their insurance rates.
The Importance of Sufficient Coverage
While the minimum coverage may be legally required, it’s often not enough to cover the financial burden of an accident. Consumer groups and Page Insurance recommend having at least 300K in liability coverage (combined single limit) to protect yourself in case of a severe accident.
In a recent case in Idaho, a driver with only the minimum coverage caused a multi-car accident, resulting in over $500,000 in damages and medical expenses. The at-fault driver’s insurance only covered $25,000, leaving them financially responsible for the remaining costs.
The Surprising Benefits of Higher Coverage
Higher coverage levels can sometimes lead to lower premiums. Insurance companies consider past and requested coverage levels when determining rates and product offerings. You may qualify for better products at lower rates by selecting higher coverage.
For example, a driver in Wyoming who increased their liability coverage from the state minimum to 300K saw their premium decrease by 15% due to qualifying for a better insurance product.
Umbrella Policies: Extra Protection When You Need It
When 300K in liability coverage may not be enough, consider adding an umbrella policy to your insurance plan. Umbrella policies provide additional liability protection beyond your auto and home insurance limits, offering extra security in case of a significant accident or lawsuit.
We’re Here to Help
Driving without insurance or insufficient coverage in Idaho, Utah, or Wyoming is not worth the risk. By maintaining at least 300K in liability coverage and considering an umbrella policy, you can protect yourself from costly legal and financial consequences. At Page Insurance, we’re here to help you find the right coverage for your needs. Contact us today to discuss your options and ensure you’re adequately protected on the road.