Recommended Arizona Car Insurance Coverages

car insurance

Car insurance coverages vary in Arizona depending on how much you want to pay, but there are specific minimum coverages required. These can cover property damage, uninsured motorist coverage, medical payments coverage and more.

In the event of an accident, $5,000 is the amount advised for medical payments coverage. If you were to pay more, the money would be reimbursable to the insurance company. You must be insured for liability in Arizona in the amounts of at least $15,000 per person, or $30,000 per crash.

Liability insurance is required to show “financial responsibility” that can stem from an accident. Financial responsibility is proving you can pay if you are involved in an accident where you are at fault. All that is needed is proof of having car insurance in the state. Otherwise, the DMV says you can be forced to pay $250 or have your license suspended for up to three months the first time you fail to show proof.

The property damage minimum is $10,000 in Arizona for car coverage in an auto accident. However, as most cars are worth much more than ten thousand dollars today, we recommend having $25,000 to $50,000.

If you have important and more expensive assets, it is recommended to have more coverage. This way, you are adequately protected. It is possible to obtain high limits, even at $500,000, as well as what is known as an umbrella policy. The umbrella policy is a term for having more insurance, or additional liability, and can be cheaper to have than you think.

You also need to have uninsured and underinsured motorist coverage, which can cover medical expenses and lost money when you are involved in an accident with an uninsured driver or vehicle. Many people choose not to insure at a rate of up to 10.6% of drivers in Arizona as of 2012. The national average is higher at 12.6%, or about one out of every seven people. This average is steadily growing, so it is important to have your own insurance.

Ultimately, what kinds of coverage to have and the limits of that coverage are a personal decision based on your needs and the amount you can afford to pay for insurance.  Remember to shop around, check lots of different auto insurance companies and ask for rate quotes that include uninsured and underinsured motorist coverage to see if it is affordable for you.

Sources:

https://www.azdot.gov/mvd/VehicleServices/insurance-information

http://www.dmv.org/insurance/uninsured-motorist-coverage.php

http://www.iii.org/fact-statistic/uninsured-motorists

https://www.geico.com/information/aboutinsurance/umbrella/