Auto Insurance Coverage In Arizona: What You Need To Know

Arizona requires drivers to have car insurance that meets or exceeds specific minimum coverage levels. These include bodily injury liability coverage, property damage liability coverage, uninsured motorist bodily injury coverage, and underinsured motorist bodily injury coverage. The minimum coverage limits for bodily injury are $25,000 per injured person and $50,000 for two or more injured persons in an accident. For property damage, the minimum coverage limit is $15,000. While these are the state-mandated minimums, drivers can choose higher coverage limits for more protection. Arizona operates as an at-fault state, meaning the driver deemed at fault in an accident is responsible for covering the damage through their insurance provider.

Bodily injury liability coverage

Arizona requires drivers to have proof of financial responsibility when operating a motor vehicle. Most drivers demonstrate this by purchasing an auto insurance policy.

Additionally, bodily injury liability insurance can cover legal fees if you are sued by someone affected by the accident, provided your policy includes a high enough liability insurance limit. The liability limits on your insurance policy will typically show three numbers, such as "100/300/100." The first number represents your per-person bodily injury liability coverage, the second number is your per-accident bodily injury liability coverage, and the third number is your per-accident property damage liability coverage.

It is important to note that bodily injury liability coverage does not pay for any repairs or property damage, nor does it cover your own medical expenses as the policyholder. To cover your own expenses in the event of an accident, you may need to add medical payments coverage and collision coverage to your policy.

The minimum bodily injury liability coverage in Arizona is $25,000 for one person sustaining bodily injury or death in an accident and $50,000 for two or more persons sustaining bodily injury or death in an accident. However, experts recommend having bodily injury limits of at least $100,000/$300,000 to adequately protect your financial assets.

In summary, bodily injury liability coverage is essential for drivers in Arizona to ensure they can cover the costs of injuries to others in the event of an accident and protect themselves from financial and legal repercussions.

Property damage liability coverage

In Arizona, drivers are required to have a minimum amount of liability coverage, which includes property damage liability. The minimum property damage liability coverage in Arizona is $15,000 per accident. This means that if you are at fault in an accident and cause property damage, your insurance will cover up to $15,000 of the repair costs. If the damage exceeds this amount, you will be responsible for the remaining costs.

It is important to note that liability insurance does not cover you or your vehicle. It only covers the other person and their property. To have coverage for damage to your own vehicle, you would need to purchase collision coverage.

Property damage liability insurance typically has a "per accident" limit and no deductible. This means that it will pay out after an accident, but only up to the amount stated in your policy. If you cause another accident, the coverage will pay out again up to the policy limit.

If you damage someone's property while driving, you should provide your insurance information to the property owner. They can then contact your insurance company to start the claims process. Your insurer will work with the other party to assess the damage and pay for repairs, up to your policy's property damage liability limit. As a result of the claim, you may see an increase in your insurance rates at your next policy renewal.

Given the high cost of repairs and the number of accidents in Arizona, it may be wise to consider purchasing more than the minimum property damage liability coverage. This will provide you with additional financial protection in the event of an accident.

Uninsured motorist coverage

If you have uninsured motorist coverage and the police locate the responsible party, your insurance company will use a process called subrogation to recover their costs from the responsible party or their insurer. This means you will not have to pay your insurance company back.

To make a claim for uninsured motorist coverage, the person making the claim must give written notice to their insurer of their intent to pursue the claim within three years of the accident. This time limit also applies to making a claim against the insurer of the underinsured driver.

Underinsured motorist coverage

In Arizona, underinsured motorist coverage is legally required. The minimum coverage is $25,000 per person and $50,000 per accident. This means that if you are in an accident with a driver who has the minimum coverage required in Arizona, and your medical bills exceed $25,000, you can recover $25,000 from the other driver’s insurance company and the remaining $25,000 from your own insurance company.

If you are pursuing compensation for an accident with an underinsured driver in Arizona, a personal injury lawyer can help you file the necessary paperwork with your insurance company and guide you through the legal process.

Collision and comprehensive coverage

Collision Coverage

Collision coverage pays for repairs to your vehicle if it is damaged in a collision with another vehicle or object, or if your vehicle overturns. This type of insurance covers collisions that are your fault, as well as those caused by another driver. It also covers collisions with objects other than vehicles, such as fences or poles.

Comprehensive Coverage

Comprehensive coverage, also known as "other than collision" (OTC) insurance, covers damage to your vehicle from things other than collisions. This includes theft, vandalism, disasters, floods, fire, impacts with animals, and riots. It also covers damage caused by falling objects, such as tree branches, and damage to your windshield from flying objects, such as rocks.

How Collision and Comprehensive Coverage Work

Both collision and comprehensive coverage have deductibles, which is the amount you have to pay out-of-pocket before your insurance company starts paying for repairs or replacements. The deductible is typically between $500 and $2,500, and the higher the deductible, the lower your monthly premium. These coverages pay up to the actual cash value (ACV) of your vehicle, which is calculated by your insurance adjuster. If your vehicle is totaled, the insurance company will declare it a total loss and pay you the ACV to help you replace it.

When to Get Collision and Comprehensive Coverage

If you lease or finance your vehicle, your lender will likely require you to have both collision and comprehensive coverage to protect their financial interests. Even if you own your vehicle outright, it's generally a good idea to have these coverages unless your car is old and not worth much. In that case, the cost of premiums may be more than the payout in the event of damage or theft.

Frequently asked questions