Utah’s Department of Insurance recently issued Bulletin 2025-8, clarifying new changes to Utah Code § 41-12a-301 — and this update is important for every Utah driver to understand.
What Changed
Under the updated law, every Utah vehicle that is registered or operated on a highway must carry full “owner’s or operator’s security” — which means liability insurance.
In simple terms:
If your vehicle has active Utah license plates, you must have liability insurance — not just comprehensive (“comp-only”) coverage.
Previously, many Utah drivers kept vehicles registered but only carried comp-only insurance (for example, when storing a car for winter or not driving it regularly). That’s no longer allowed.
You Can’t Keep Plates on a “Comp-Only” Vehicle
The Utah State Tax Commission has determined that a comprehensive-only policy no longer meets the financial responsibility requirement for any registered vehicle.
If you want to drop to comp-only coverage, you must:
- Cancel the vehicle’s registration (plates) with the DMV, and
- Keep the vehicle off public roads and parking areas.
Otherwise, you’re considered uninsured under Utah law.
What Happens If You Don’t Comply
Simple, your insurance
- Your driver’s license can be suspended, and
- You may be required to file an SR-22 to reinstate your license — which comes with significant costs and higher insurance premiums.
These are serious penalties, so make sure your coverage is current and compliant.
Seasonal and Recreational Vehicles
Even seasonal vehicles like RVs, motorcycles, or ATVs must now maintain liability coverage for the entire time they’re registered — not just during their active use period.
If you plan to store your vehicle for the season, you must surrender your plates before switching to comp-only coverage.
💡 What Utah Drivers Should Do
- Review your current policy and vehicle registration status.
- If you have a stored or non-operational vehicle, talk to your insurance agent about the right way to pause liability and cancel registration.
- Always maintain liability insurance on any vehicle with Utah plates.
🏁 PCRG Insurance’s Takeaway
At PCRG Insurance, our job is to make sure you stay protected and compliant with new laws. This Utah rule change may seem small, but ignoring it can result in license suspension and major financial headaches.
If you’re unsure whether your current coverage meets the new requirements, our team is happy to review your policies and guide you through the safest options for your vehicles.
📞 Contact us today at 425-243-5193 or info@pcrginsurance.com to make sure you’re up to date and protected under Utah’s new law.