Smart Auto Insurance Blog

Salt Lake City, Utah has a new program called the “U Car Share” program where an individual can drive around town without owning a car.  The program allows you to “borrow” a car to run errands or get to a meeting at competitive prices.  Ten other cities are trying the program as well.  The article “Car Rentals by the Hour, A New Option For Getting Around Town” by Annie Cutler on abc4.com has more details.

Community leaders hope the “U Car Share” program will improve air quality, increase public transportation, and help traffic.  There are 20 cars at about 12 stalls throughout the city with numerous types of cars.  The cost includes a one-time membership fee, an hourly rate, and an additional $.50 per mile.  Gas and auto insurance costs are built into the price.  You will need to be 18 years of age in addition to having a valid drivers license.

Currently the membership fee is set at only $5 and an hourly rate of $4.95.  They intend on raising the membership fee to $25 after January 15th, but they hope the low introductory price will entice drivers to try out the program.  Many are hopeful that the program is a big success.

RateWatch recently released its fourth quarter 2008 report, which highlights the poor consumers in states with the greatest increase auto insurance rates. Believe it or not, during this recession premiums actually increased by 8% over the past year!

Highest auto insurance premium increases:

1. Washington, D.C. auto insurance rates increased by 10.5% in Q4.
2. Utah auto insurance rates followed close behind with a 10.2% increase.
3. Colorado auto insurance rates saw a less severe, but still significant 6.1% increase.
4. Delaware auto insurance rates went up by 5.6% in Vice President Joe Biden’s home state.
5. Wyoming auto insurance rates increased by 5.5% in the fourth quarter.

According to a recent press release, Esurance has now begun offering auto insurance coverage in Utah.  With the addition to Utah to its coverage footprint, Esurance now offers auto insurance in twenty-nine states, accounting for roughly 85% of US drivers.

Utah residents who purchase an auto insurance policy online from Esurance will receive a 5% discount on their first policy term.

Any time competition increases in an insurance marketplace such as Utah, it is good for customers, as more opportunities to shop for the best Utah auto insurance rates will result.  Anybody who is knowledgable about the auto insurance marketplace will tell you that there is tremendous price variance between companies even for similar coverage levels, and you can save a substantial amount of money by first shopping before you buy.