You don't have to have "Auto Insurance" in Utah?

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Just another one of those “did you know” articles… in the State of Utah it’s not a requirement that you purchase or maintain automobile insurance. Did you know that?

Be careful, though, there are other responsibilities that you have to meet if you opt-out of insurance.

Utah Code 41-12a-301 (2)(a) says “every resident owner of a motor vehicle shall maintain owner’s or operator’s security in effect at any time that the motor vehicle is operated on a highway or on a quasi-public road or parking area within the state”.

What is “owner’s or operator’s security”? For that we turn to 41-12a-103 (9) which says:

41-12a-103. Definitions.
(9) “Owner’s or operator’s security,” “owner’s security,” or “operator’s security” means any of the following:
(a) an insurance policy or combination of policies conforming to Section 31A-22-302, which is issued by an insurer authorized to do business in Utah;
(b) an insurance policy or combination of policies issued or renewed prior to January 1, 2009 that:
(i) conformed to the minimum coverage limits of Section 31A-22-304 prior to January 1, 2009; and
(ii) conform to the current requirements other than the minimum coverage limits of policies issued in accordance with Section 31A-22-302;
(c) a surety bond issued by an insurer authorized to do a surety business in Utah in which the surety is subject to the minimum coverage limits and other requirements of policies conforming to Section 31A-22-302, which names the department as a creditor under the bond for the use of persons entitled to the proceeds of the bond;
(d) a deposit with the state treasurer of cash or securities complying with Section 41-12a-406;
(e) maintaining a certificate of self-funded coverage under Section 41-12a-407; or
(f) a policy conforming to Section 31A-22-302 issued by the Risk Management Fund created in Section 63A-4-201.

At first you may think that (e) is applicable, but to maintain a certificate of self-funded coverage, you have to have at least 24 vehicles in your fleet. That’s probably not you.

(c) and (d) are what will let you “get away” with not having auto insurance. Basically, these sub-sections require that you have a “surety bond” issued, or deposit the “minimum coverage limits” with the state treasurer.

We’re not offering legal or insurance advice, we’re just pointing out interesting tidbits in codified law so that you can make your own informed decisions.

41.12a.301

2.(a) every resident owner of a motor vehicle shall maintain owner’s or operator’s security in effect at any time that the motor vehicle is operated on a highway or on a quasi-public road or parking area within the state

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