What Happens When You Have a Gap in Car Insurance Coverage?

There are many reasons you might have a gap in your car insurance coverage for an extended period. Perhaps you moved out of the country for a while or decided to go without a personal vehicle for a few years. Whatever the reason, it’s important to understand the potential consequences of having a gap in your car insurance in Salt Lake City and how to handle it.

What Happens if You Have a Gap in Car Insurance Coverage in Utah?

First and foremost, be aware that driving without car insurance is illegal in most states, including Utah. If you have a gap in coverage and get behind the wheel, you could face fines (usually between $400 and $1000 in Utah), license suspension, or possibly time in jail, depending on the case circumstances.

Not to mention, if you were to get into an accident during this gap period, you would be personally responsible for covering any costs, injuries, or other damages.

Moreover, a gap in car insurance coverage might result in higher rates when you decide to purchase a policy again. Utah insurance companies view a lapse in coverage as a risk, which can mean pricier premiums to compensate for that perceived risk.

However, there are plenty of innocent reasons to have a coverage gap, and insurance companies tend to understand that. If you had a gap because of fraud, license suspension, or unpaid premiums, these are scenarios when having a gap will affect your premium.

But keep in mind that the gap isn’t so much causing the increase in premiums as it is the reason for the lapse in coverage in the first place.

How Much Car Insurance Do You Need in Utah?

In Utah, the minimum requirements are: 

• $25,000 bodily injury liability per person
• $65,000 bodily injury liability per accident 
• $15,000 property damage liability per accident

In addition to basic coverage, drivers must also carry personal injury protection (PIP) coverage, as Utah is a no-fault state. PIP covers your medical expenses, lost income from not being able to work, and other costs, regardless of who was at fault for a car accident in Utah.

Is the minimum enough car insurance?

The bare minimum might suffice in a very minor incident, but car accidents can easily exceed the minimum insurance coverage in Utah. Many drivers choose to add more coverage for this reason.

Do You Have Adequate Utah Car Insurance?

One thing is for sure: whether you have questions about gaps in coverage or finding the right policy for you, the team at Salt Lake City Insurance is here to help! Call us today to get all of the information you need.