Arizona Car Insurance Requirements, Laws and Coverage
Arizona car insurance requires the car drivers to show financial responsibility. Every car driver must carry an insurance liability. If you don’t want to meet the car insurance requirement, you need to own a self insurance certificate.
The motor vehicle owners in Arizona must purchase the liability insurance. The liability insurance will pay for the legal fees if the third party sues you. The three types of liability insurance that drivers in Arizona must purchase are bodily injury coverage, property damage coverage and combined bodily injury and property damage coverage. The minimum requirement for the bodily injury coverage is $15,000 per person. For multiple persons that are involved in the accident, you need to purchase at least $30,000 of bodily injury. The minimum requirement for the property damage is $10,000. The liability limit for the combined bodily injury and property damage insurance is $40,000.
Though you are only required to purchase liability insurance, you should also purchase other optional coverages such as underinsured motorist coverage, comprehensive coverage and collision insurance. The uninsured motorist insurance offers coverage for the medical costs and lost wages for a policy holder if he was hit by a car that is not covered. Uninsured motorist insurance will also pay for the damages if the other party don’t possess enough insurance coverage.
The comprehensive insurance pays for all kinds of losses including flood, fire and vandalism. With a comprehensive insurance, you will be protected from physical damage.
The collision insurance pays for the damage cost of the motor vehicle. This type of insurance is often necessary for people that borrow a loan. People that rent their cars from a rental company will also be required to buy the collision insurance. It will pay for damages caused by collision with another motor vehicle that is fixed or movable. You can opt to purchase collision coverage with deductible. The deductible is the amount which you are paying for the damage cost in case of an accident. If the value of your vehicle is lower than the book value, it is recommended that you don’t buy the collision insurance. On the contrary, if your vehicle has a higher book value, you need to buy collision coverage. It is not worth it to buy collision coverage for vehicle that has a lesser value than the blue book value. This is because the cost of purchasing a new car is cheaper than the repair cost.
If possible, you should buy more coverage so that you are secured. If you only buy insurance to meet the minimum requirement, you will have to pay for the remaining balance that is not covered. The damage cost and medical fees that are incurred during an accident can be very expensive so it is recommended that you buy a higher coverage. Before finalizing a deal, you must read your policy and make sure you understand the terms. In addition, you should shop around different insurance company to prevent paying too much. By shopping around, you will find an insurance company that offer the cheapest car insurance rate.
Arizona Department of Insurance
- 2910 N. 44th St. Suite 210, Phoenix, AZ. 85018-7269
- Phone: (602) 364-2499
- www.id.state.az.us
Arizona Department of Transportation
- PO Box 2100, Phoenix AZ 85001-2100
- Phone: (602) 255-0072
- www.dot.state.az.us
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