How Utah’s No-Fault Insurance Law Offers Protections

Posted on June 18, 2021

Under Utah’s no-fault insurance law, every motor vehicle must have minimum coverage that will help pay for the cost of damages in an accident, regardless of who was at fault. Although the coverage is minimal, it will pay up to set limits for bodily injury and property damage that will give immediate relief in the aftermath of the accident, until liability of the at-fault party is established.

These laws require that all motorists carry proof of insurance, and penalties for operating an uninsured vehicle include fines and license suspension. These laws are rigorously enforced using data collected by Insure-Rite, Inc., a company that partners with the Utah DMV to gather insurance policy information from insurance companies and compare it against a database of registered vehicles in Utah. If there are any discrepancies, the DMV will revoke the vehicle’s registration in order to get the motorist off the road.

What is Personal injury protection (PIP)

Also known as a mandatory minimum, PIP insurance will provide limited coverage for medical costs, lost income and other related expenses in an accident, regardless of who was at fault. PIP insurance also covers other passengers in the vehicle, pedestrians or bicyclists. In Utah, PIP insurance is not required for motorcycles, trailers or semi-trailers.

In Utah, PIP liability coverage is 25/65/15 and benefits include:

  • the first $3,000 in medical expenses for each injured person
  • the lesser amount of $250 per week or 85% of lost income
  • $20 per day for household services
  • $1,500 in funeral benefits
  • $3,000 in death benefits

These benefits are minimal, and many motorists purchase additional coverage amounts, which can vary depending on how much added protection there is, the individual’s driving history and what city they live in.

Tort Threshold in Utah

As is the case in many PIP states, there is a tort threshold for claims. This means that if the injured party files a claim against an at-fault party, they cannot sue for some damages such as pain and suffering unless the accident caused death, dismemberment or disfiguration, a permanent disability or medical expenses in excess of $3,000.

For residents of Salt Lake City and throughout the state, it is important to have aggressive and professional Salt Lake City personal injury attorneys to guide you through the challenges of recovering damages from insurance companies, and if necessary, filing a tort claim after a serious accident in order to receive just compensation for the injuries suffered.