Utah House raises auto-insurance minimums for property damage, keeps modest bodily-injury increase

Representative Janice Judkins, sponsor of House Bill 113, told the House that the proposal would raise the state’s minimum auto liability limits and better reflect current vehicle and repair costs. “These are limits that have not been raised since 1993,” Judkins said, and the bill raises property-damage minimums from $15,000 to $30,000 and bodily injury per-person limits from $25,000 to $30,000.

Judkins said the change was prompted in part by a family car crash and by state safety data: she cited Utah Highway Safety figures that show about 360 serious-injury crashes and roughly 26,000 injuries from crashes per year. She also cited testimony from insurance-industry witnesses saying the change would have a very small effect on premiums: “they said that raising … would only raise your rates by point 2%,” Judkins said (testimony in committee and on the floor).

Opponents warned the House that even small increases can matter for low-income or younger drivers. Representative Musselman said he was uneasy about the state setting minimums and warned it could set a precedent: “I am uncomfortable in reaching down to make and setting this precedent,” he said. Representative Shipp cautioned that the cost increase could hit young drivers and students for whom “every little bit counts.” Supporters, including Representatives Brammer and Ward, argued inflation has eroded the real value of the 1993 limits and that modest higher minimums protect crash victims.

Judkins reiterated that the sponsor’s intent was to protect injured parties while imposing only a small premium increase: she said earlier, and again on the floor, that the expected change in the average premium would be minimal and that the raised limits would better cover property damage and serious injuries.

After debate, the House approved the substitute and final passage of House Bill 113 by a vote of 53 yes and 21 no. The bill will be transmitted to the Utah Senate for further consideration.