Understanding Arizona's Auto Insurance Minimum Requirements

Arizona requires drivers to have car insurance that meets or exceeds certain minimum coverage levels. These include $25,000 per person/$50,000 per accident for bodily injury liability coverage, and $15,000 for property damage liability coverage. Drivers must also carry proof of insurance in their vehicles at all times and may face penalties such as fines, license suspension, and impounding of their vehicles if caught driving without insurance.

Bodily injury liability coverage

Arizona requires drivers to have car insurance that meets or exceeds certain minimum coverage levels. One of the most important components of this is Bodily Injury Liability Coverage. This type of insurance coverage pays for bodily injury to others for which you become legally responsible due to a car accident in which you were involved. It is important to note that this coverage does not pay for bodily injuries that you may sustain; separate medical payments coverage is needed for that.

The minimum requirements for Bodily Injury Liability Coverage in Arizona are as follows:

• For policies issued or renewed before July 1, 2020, the minimum coverage is $15,000 for bodily injury to or death of one person in any one accident.
• For policies issued or renewed on or after July 1, 2020, the minimum coverage increases to $25,000 for bodily injury to or death of one person in any one accident.
• Regardless of the policy issue or renewal date, the minimum coverage for bodily injury to or death of two or more persons in any one accident is $50,000.

It is important to review your policy to understand the specific details of your Bodily Injury Liability Coverage, as well as any exclusions or limitations that may apply. Additionally, while these are the minimum requirements, you may choose higher coverage limits to better protect yourself financially in the event of a serious accident.

Property damage liability coverage

Arizona's financial responsibility law requires drivers to carry a minimum of $15,000 for property damage liability coverage per accident. This coverage is intended to pay for damage to another person's property in an accident where you are at fault. This may include damage to the other driver's car, as well as damage to buildings, fences, and other property. It is important to note that property damage liability coverage does not cover damage to your own vehicle. If you want coverage for damage to your own car, you would need to purchase collision coverage.

While the minimum coverage limit for property damage liability in Arizona is $15,000, you may want to consider purchasing higher limits. Higher limits are usually available, but the availability and price may vary by insurer. By increasing your liability limits and adding optional coverages, you can create a more comprehensive insurance policy that better protects you in the event of an accident.

It is also important to keep in mind that Arizona's minimum coverage requirements may not be sufficient for all drivers. Most agents and government officials recommend getting more than the mandatory minimums to ensure you have adequate protection. Additionally, lenders and leasing companies typically require collision and comprehensive coverage to protect their financial interests in the vehicle.

In summary, property damage liability coverage is a crucial component of auto insurance in Arizona. By understanding the minimum requirements and considering your specific needs, you can make informed decisions about your insurance coverage and ensure you are adequately protected in the event of an accident.

Uninsured motorist coverage

Arizona requires drivers to have uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage. This insurance covers your medical bills and property damage expenses if you are in an accident with a motorist who does not have auto liability insurance or does not have sufficient insurance to cover the total amount of expenses.

Underinsured motorist coverage, on the other hand, protects you and your passengers if you are in an accident with a driver whose insurance coverage is insufficient to pay for your injuries. The minimum coverage limits for underinsured motorist coverage in Arizona are the same as for uninsured motorist coverage: $25,000 per person and $50,000 per accident.

While UM/UIM coverage is mandatory in Arizona, you can choose to purchase higher limits, depending on your insurance provider. It is worth considering increasing your coverage limits to ensure you are adequately protected in the event of a serious accident.

Underinsured motorist coverage

In Arizona, all drivers are required by law to carry liability insurance to cover bodily injury and property damage. The minimum coverage limits are $25,000 per person and $50,000 per accident for bodily injury, and $15,000 per accident for property damage. However, in many cases, these minimum coverage limits may not be sufficient to cover all the expenses incurred in an accident. This is where underinsured motorist coverage comes into play.

For example, let's say you are riding your bicycle in Arizona and are hit by a driver with the state minimum coverage. Your medical bills amount to $50,000, but the driver's policy limits will only allow you to recover $25,000. If you have underinsured motorist coverage, you can first recover the $25,000 from the other driver's insurance company, and then turn to your own insurance for the remaining $25,000. This ensures that you are not left with medical debt or uncompensated for your pain and suffering.

It is important to note that underinsured motorist coverage has certain time limits and requirements for making a claim. In Arizona, you must give written notice to your insurer within three years after the date of the accident that caused the bodily injury. Additionally, you must make a claim with the at-fault driver's insurer or take legal action within the prescribed time limits.

Medical payments coverage

MedPay covers the medical expenses of the policyholder, any named drivers, and their passengers, regardless of who is at fault for the accident. This includes hospital and ambulance expenses, nursing costs, and funeral expenses. It also covers the deductibles and copays of other insurance policies, such as health insurance or personal injury protection (PIP) car insurance. For example, if you have a high deductible on your health insurance, MedPay can help cover those out-of-pocket costs.

Even if you have health insurance, MedPay can be a worthwhile investment due to its low cost, typically less than $10 per month on average. It ensures that you can receive the medical treatment you need without the stress of immediate financial concerns.

While MedPay is not required, Arizona's financial responsibility law requires drivers to carry a minimum of $25,000 per person/$50,000 per accident in bodily injury liability coverage and $15,000 per accident in property damage liability coverage. This basic liability coverage helps pay for the other driver's medical bills and property damage when you are at fault in an accident. However, it does not cover your own medical expenses, which is where MedPay can come into play.

Frequently asked questions