Posted On: January 4, 2009, 7:21 pm CST

Posted By: does not go high enough.

Dec. 31--After the confetti settles from tonight's New Year's eve celebrations, Utahns will face a few changes as a dozen new state laws take effect.

One in particular, Sen. Sheldon Killpack's SB149, mandates increased motor vehicle liability insurance coverage -- from $50,000 to $65,000 -- for bodily injury of two or more people.

As a result, premiums are expected to rise, but to what extent will vary according to carrier and type of coverage.

While those well-off likely won't see much difference, the working poor will feel the pain and the ranks of the uninsured will increase, predicts Gary Thorup, an attorney for Property Casualty Insurance Association of America.

"There are currently people who are marginally paying for their insurance," Thorup said. "As those rates go up, obviously wallets will be stretched even further. If it's the choice of feeding my family and taking the chance of being uninsured, I will probably opt for the first."

The bill's backers pushed for higher coverage requirements to pay for hefty medical costs incurred in serious accidents.

Paul McGarrell, an agent with Farmers Insurance, maintains that the bump to $65,000 does not go high enough.

"Medical bills being what they are, it's still not a lot of coverage," McGarrell said. "So when people are badly hurt, the bills can go way beyond that."

However, as a company, Farmers Insurance lobbied against SB149.

"Farmers

opposed it because of the large number who drive uninsured," McGarrell said. "They felt it would increase that number and that having some coverage is better than none."

With the plummeting economy, people are shopping harder for rates, McGarrell added, and more are dropping collision and comprehensive coverage and opting for liability only.