Utah is set to increase auto insurance minimum coverage limits for bodily injury, death, or property damage caused by a crash in 2025. 

The changes come from the passage of HB113, which was signed by Gov. Spencer James Cox on March 13, 2023. 

Starting Jan. 1, liability for bodily injury or death of one person will be raised from $25,000 to $30,000. The minimum coverage liability for injury or destruction of property will be raised from $15,000 to $25,000. 

The bill did not change the minimum required coverage of $65,000 to cover bodily injury liability for all people injured in a crash. 

State Farm recently released a notice explaining that any policyholders with minimums under the new requirements will automatically renew with the new minimums on Jan. 1. 

Rep. Marsha Judkins (R-61) introduced the bill in 2023 after multiple attempts to pass similar bills in previous sessions. 

She told a committee in 2023 that the bill was personally important to her following a serious crash her eldest daughter was in. 

“She was in the hospital for quite awhile,” Judkins said. “She will not fully recover but one of the things that was really pressing at the time was how was this going to be paid for?” 

Judkins said she was not at fault for the crash and was struck by another vehicle. 

“We didn’t know what their insurance status was or anything,” she said. “We would have been devastated, except for the person who hit her had really good automobile insurance.” 

After the crash, Judkins said she went home and checked her own automobile insurance. She found that it was higher than the state’s minimum but still low at $35,000 for bodily injury liability.

She said $35,000 would have been completely consumed within two days of her daughter at the hospital. 

Judkins said she raised her liability insurance to $255,000 and it increased her insurance by $15. 

“Medical insurance bills have raised by 250% in the past 20 years but lability rates have not,” Judkins said. 

Judkins also noted that its hard to replace a vehicle at the current $15,000 liability minimum. 

New research from the Specialty Equipment Market Association (SEMA) shows the 2024 average listing price is $25,251 for a used vehicle and $48,644 for a new vehicle. 

The cost of repairing a vehicle has also increased in recent years. 

The 2024 Enlytened Trends Report, released by Enlyte in January, detailed a trend of higher overall repair costs. The report provides detailed commentary from Mitchell International Claims Performance Director Ryan Mandell. 

“I would expect to see the average repairable claim cost at around $5,000 in the U.S… In 2024, those numbers will likely grow, potentially exceeding $5,500.”

Mandell said factors that are contributing to the claim cost increase are due largely to parts because the average number used in each repair has risen, making parts now represent a greater share of the total estimate. The number of parts used in each repair is growing by roughly 1% each year.

“Historically, it took four to five years to add one additional part per estimate,” he said. “It now takes about a year. That is significant, especially since the cost of a replacement part is around $275 — an extra $75 more than in 2020.

“Inflation is partly to blame for these rising costs, although it has slowed from where it once was in 2022 — particularly for aftermarket parts. At that time, we saw the top 150 commonly replaced parts increase in price by just about 17%. In 2023, prices stabilized, and the growth was closer to 10% for the top 150 parts. OEM part prices are obviously also impacted by by inflation, but not to the same degree.”

An increase in the number of vehicles equipped with advanced driver assistance systems (ADAS) also plays a part in repair costs and parts repairability, especially as they become standard on vehicles. At least one ADAS feature is available on most model year 2018 and newer vehicles, according to Mandell.

Mandell also notes in the report that 2023 saw a dramatic increase in the national average bodywork labor rate, which jumped from $55 an hour to $59.

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