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Car Insurance in Arizona

Car insurance in Arizona is a concern shared by all drivers. As a financial responsibility state, Arizona is a state with auto insurance requirements on the law books, but one that offers self insurance alternatives for individuals and companies meeting eligibility requirements. These options include a bond or a certificate of deposit in the amount of $40,000. Most drivers do not have the level of financial resources needed to come up with that kind of cash, so self insurance is not a realistic option for the vast majority in the state. Auto insurance is the only remaining choice.

But Arizona auto insurance does more than just fulfill state law. On behalf of covered drivers, it provides a blanket of coverage that protects their cars and their families in a multitude of situations. Beginning with mandatory auto liability insurance and moving to other optional areas of protection, auto coverage for state drivers protects them in a variety of ways.

AZ Auto Liability Insurance Requirements

Liability insurance is a required element of every car insurance policy sold in the state of Arizona. Every Arizona driver must be covered with liability protection. Bodily injury and property damage liability are covered by these Arizona liability policies. Arizona uses the split limit liability form. In this type of liability insurance, the limits of coverage included in the policy are divided into three parts. Each limit takes care of a specific type of expense, and comes with its own deductible. Drivers in Arizona who opt for auto liability insurance to comply with financial responsibility requirements must carry liability protection of at least 15/30/10 [1].

Bodily injury per person is represented by the first number, meaning Arizona drivers must have at least $15,000 in protection for the bodily injury related expenses of a single victim. Single accident limits for bodily injury must be at least $30,000. Single accident limits are put into place for situations when multiple victims are injured and require medical attention. Property damage liability minimums are $10,000.

Importance of Liability Insurance

Auto liability insurance is important because it protects the insured driver from directly having to take on the financial expenses related to the bodily injury and property damages sustained by the other cars involved in an accident. An adequate liability policy will protect you as an insured driver from personally incurring financial damage as a result of this type of accident. On the other hand, inadequate coverage may leave you exposed to financial trouble in these situations.

Most insurance experts nationwide recommend that drivers carry more than the minimum required levels of auto insurance on their auto liability policies. $100,000 per person and $300,000 per accident are common recommendations as baselines for liability insurance among industry professionals. There are two reasons for this. The first reason is that the cost of medical care has climbed so much, and along with it the cost of new cars and auto repair. The second reason is much like the first. People these days tend to be sue happy. In the aftermath of auto accidents, victims who are severely injured or who miss significant time at work are often encouraged by their families or lawyers to seek punitive damages in civil court to cover these costs and their pain and suffering. Often these situations turn into a chase for as much money as the plaintiffs can get their hands on.

It is extremely important to have enough auto liability insurance protection to withstand this type of civil assault. Some people do not realize that their personal assets are exposed in these cases. If you do not have the kind of cash or insurance necessary to settle a judgment does not mean you will not be responsible for the remainder of it. Wage garnishment and seizure of goods are two possible outcomes when these judgments are passed down. Needless to say, it is preferable to pay a little more for adequate auto liability insurance than to have to pay out of pocket for large civil judgments in the wake of an at fault injury accident.

Optional Arizona Car Insurance Endorsements

In addition to liability coverage, there are multiple optional parts drivers could choose to quote in their Arizona auto insurance policies. Collision and comprehensive are required of drivers who finance or lease their vehicles by many lien holders. Uninsured and underinsured motorist protection put coverage into place for dealing with the expenses that an at fault uninsured driver normally would have to cover if he was insured. And medical payments coverage provides protection for the insured driver and any passengers for their medical expenses if they get injured in an auto accident in the covered vehicle. Each endorsement adds a measure of value to an Arizona car insurance policy.

[1] Retrieved 2010-05-14.


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