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Arizona Auto Insurance Rules and Regulations

Drivers in the state of Arizona are legally required to carry auto insurance according to state law. Based on Arizona auto insurance rules and requirements, auto owners in the state have to make sure they are in compliance with the law and keep their coverage active and up to date. There are certain areas of auto insurance which are mandatory for policy holders in the state, and others that are only optional but highly recommended in many circumstances. To save money on an Arizona car insurance policy, you can look for discount savings or other ways to cut costs. A good understanding of what is required and what's merely optional can help you to make informed choices on your policy based on your individual needs and your budget.

Liability Auto Insurance in AZ

Like many other states across the country, Arizona is a financial responsibility state as it pertains to auto insurance. What this means to you as a driver is that you must be able to demonstrate the ability to deal with the costs of an at fault accident in order to legally drive on state roads. There are multiple ways to go about meeting this responsibility. Drivers have the option of getting a certificate of insurance, bond, or certificate or cash in the amount of $40,000 to satisfy this obligation [1]. For the few among us who can come up with that kind of cash, these self insurance options can be an attractive alternative. But for the rest of us, the best way to go about getting into compliance with state law is to purchase and maintain liability insurance meeting minimum state guidelines.

Arizona uses split form liability insurance, which is divided into three separate sections, each dealing with specific expenses associated with liability claims. Each of the three section of an Arizona liability policy has its own deductible and limit of coverage. The state mandates minimum limits, but drivers are free to purchase additional protection. Many do buy much more than just the minimum, because the majority of car accident liability claims far exceed those minimums. The state calls for at least a 15/30/10 policy [1], each number representing in thousands of dollars the amount of coverage drivers must carry for the three respective parts of a liability plan.

The first number is the minimum for single accident single victim bodily injury liability protection. The second is for multiple victim liability. These parts of the plan pay for medical and other associated expenses for the driver and other passengers of the other vehicles involved in an accident, as well as any pedestrians or bicyclists that may have been injured in the crash. The third and final number represents the minimum limit of coverage available for property damage liability. This money pays for damages to the other cars and for any other property loss that may occur outside the covered driver's own vehicle. As with all parts of a liability policy, this portion includes no coverage for the covered driver or car. To insure your own vehicle or to provide coverage for yourself as a driver against injuries, you need to add additional optional areas of coverage in addition to your AZ liability auto policy.

Optional Areas of Car Coverage

There are many different optional areas of coverage available to add to a policy. Chief among them are collision and comprehensive insurance. Collision insures your car up to its market value against physical damage due to accidents while comprehensive does the same for non accident claims like theft, vandalism and other areas. The value of comprehensive and collision insurance are very high when your car is new, but decline as the car ages and depreciates. Eventually there comes a point when it no longer makes sense financially to carry collision and comprehensive on an AZ policy.

Other optional endorsements include uninsured and underinsured motorist protection, medical payments coverage, rental reimbursement, and glass replacement. Each driver must decide on an individual basis what to include in a policy and what to leave out. Our free quote site makes it easy to do just that by giving you a way to price out plans based on different options from the comfort of your own home.

Savings Opportunities for Arizona Drivers

To save money on Arizona car insurance, drivers must make sound choices on their policies and take advantage of available discounts, which can range from accident free to non smoker or multi policy discounts. When you are in the market for a policy, do not hesitate to ask for any discount you think you qualify for. If one provider is unwilling to work with you on price, there is likely to be another more willing to lend a helping hand.

[1] http://www.id.state.az.us/consumerautofaq.html#A_2 Retrieved 2010-03-28.

 

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