SALT LAKE CITY — One expense impacting many Utahns is car insurance. It’s an expense that has risen sharply over the past few years and it’s expected to go up again this year. As for why, there are many reasons.

Utah has seen a dramatic rise in its annual accident count since COVID. In 2020, the Utah Department of Public Safety recorded 51,629 crashes in the state. Last year, that number was 61,648 – 19.4% higher than 2020.

In the same time frame, car insurance costs have climbed by 54.8% according to the KSL Investigates analysis of numbers from the U.S. Bureau of Labor Statistics.

“So, there’s been more accidents,” said insurance expert Leslie Kasperowicz, executive editor at Insurance.com. “More people on the road.”

But more risk is just the tip of the iceberg.

Other factors

The cost of car repairs has shot up 40.2% over the past five years, according to the Bureau of Labor Statistics numbers. And the average price paid for a new car has gone up 26% based on data from Kelley Blue Book.

It’s a one-two punch that’s hitting claim costs hard.

The average cost for car repairs is 40.2% higher than in 2020. It’s one of several factors contributing to rising auto premiums. (KSL TV)

“So, insurance companies, they want to take in enough money to pay all of their claims,” Kasperowicz said.

Then there’s tariffs. The Trump administration recently slapped a 25% tariff on both imported cars and car parts made overseas. That’s on top of tariffs as high as 50% for imported steel and aluminum.

“And as the tariffs increase and the cost of importing those items goes up, eventually you’re going to see that trickle down into insurance rates,” Kasperowicz said.

Then there’s the weather.

Kasperowicz says an uptick in extreme events such as hurricanes, flooding, hailstorms, and wildfires is taking a toll on premiums.

“A lot of cars are damaged and lost in those events as well,” she said. “So, the increase in claim costs has been hurting insurance companies.”

Still, drivers can still save money.

Saving money

Kasperowicz says insurance companies can charge wildly different rates from each other. So, shop around and get multiple quotes every renewal time.

Raising your deductible will also save you money, if you can stomach the higher out-of-pocket cost if there is a claim.

And check for discounts such as safe drivers, students, first responders and others.

“People kind of assume that the car insurance company is going to catch those discounts and give them to you automatically, but that’s not always the case,” Kasperowicz explained.

Many insurance companies offer a driver monitoring program to save money. Often that means using an app or device that tracks data like speed, braking and mileage. But for some drivers, that spurs privacy concerns.

Kasperowicz says before you sign up, go to the carrier’s website and learn exactly which data points are tracked and how that info gets used.

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