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.
Many consumers are having a hard time adjusting to these high increases. The year of 2008 has been difficult financially for many people as some are without jobs and many are struggling just to pay their bills.
With the struggle to just pay the necessities, unfortunately there are drivers that let their auto insurance lapse because of lack of payment. When they are able to have the funds to reinstate their policy, they will see an extra increase in their rate of coverage because of the previous nonpayment and illegal lack of coverage. Rates will also increase dramatically if they have to file for bankruptcy.
Insurance providers use the driver's credit information to calculate the rate that they are going to charge. If a driver has open and closed a number of bank or credit accounts, or has a record of being late on making payments will be seen as a higher risk to the provider and therefore will be charged a higher premium.
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.
Many consumers are having a hard time adjusting to these high increases. The year of 2008 has been difficult financially for many people as some are without jobs and many are struggling just to pay their bills.
With the struggle to just pay the necessities, unfortunately there are drivers that let their auto insurance lapse because of lack of payment. When they are able to have the funds to reinstate their policy, they will see an extra increase in their rate of coverage because of the previous nonpayment and illegal lack of coverage. Rates will also increase dramatically if they have to file for bankruptcy.
Insurance providers use the driver's credit information to calculate the rate that they are going to charge. If a driver has open and closed a number of bank or credit accounts, or has a record of being late on making payments will be seen as a higher risk to the provider and therefore will be charged a higher premium.
About the Author:
Steve Turner has a lot of skill with helping drivers to locate sufficient Utah Auto Insurance coverage. Utah Auto Insurance Coverage Steve Turner works with a variety of insurance companiess and can therefore provide you with the best Utah Auto Insurance coverage at the most affordable price. Utah Auto Insurance Prices
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