Arizona law requires drivers like you to have insurance on their vehicles. This legislation protects you and other people in case of an accident. However, not all auto insurance policies are made equal, carrying different levels of protection and coverage limits.
It’s crucial to understand what the required insurance is for Arizona. It will protect your family and pay for your medical and vehicle expenses if someone else is at fault.
Aside from personal reasons, there are consequences for not obtaining at least minimum car insurance coverage. They can step in to suspend your license and even throw you in jail for not having it in the state of Arizona.
We believe you can benefit from learning about minimum car insurance to see why states require it and whether it’s worth it to get more protection.
Why Do I Need Auto Insurance in Arizona?
Maintaining auto insurance is important to ensure that you don’t have to pay out of pocket for damages you cause to others in an accident. And if you have additional protection beyond minimum coverage, it will fund your own vehicle repairs and medical expenses.
The Arizona Motor Vehicle Department ensures every driver has protection. They go as far as to track the insurance status of every vehicle. Insurance providers notify the MDV of any updates in your insurance information, such as policy cancellations or non-renewals.
If your policy doesn’t renew or you cancel it, they will send a request to verify your insurance status. Fining you for a lapse of coverage, the state has the right to suspend your vehicle registration or driver’s license.
You can easily avoid legal trouble and receive financial compensastion from negligent drivers by purchasing auto insurance.
Minimum Arizona Car Insurance Requirements
Arizona is an at-fault state. This means that an at-fault driver must pay for medical and vehicle damages they cause the other driver.
As a result, everyone able to operate a motor vehicle must carry liability insurance coverage. It kicks in when an officer determines from the crash scene that you were at fault. When you least expect it, you could be responsible for someone else’s car damage and will have to pay for it.
The State minimum coverage for liability insurance is a baseline for all Arizona insurance companies. They must offer this coverage that helps pay in situations where you were texting and driver or another driver was not paying attention to the road.
- $15,000 for property damage liability coverage.
- $25,000 for bodily injury liability coverage for one person
- $50,000 for bodily injury liability for two or more people.
What Are Other Recommended Types of Auto Insurance?
While liability coverage is the only type of auto coverage that Arizona requires, there are various auto insurance types you should consider.
Each play a different role in protecting you, your passengers, and your property. Whether you’re on a budget, have teenage drivers, or have bad credit, it’s possible to obtain affordable insurance premiums with the coverage you need.
Underinsured and Uninsured Motorist Coverage
Underinsured and uninsured coverage protects you when an at fault driver who either doesn’t have insurance or has insufficient coverage. This also applies if you are the victim of a hit-and-run.
If you do choose to add underinsured or uninsured motorist coverage to your policy, the minimum coverage amounts are $25,000 and $50,000. This protection will pay for your damages when the negligent driver couldn’t.
While liability coverage ensures paying for damages you caused to another driver, it doesn’t pay for your own.
Collision insurance pays for repairs or the replacement of your vehicle in a crash where you are at-fault. This applies when you hit another vehicle or a stationary object.
While Arizona does not require it, collision coverage is typically required if you lease or finance your vehicle.
Medical Payments Coverage
Medical payments coverage provides protection to you and your passengers if you are involved in an accident. This coverage type can be utilized regardless of who is at fault. While this coverage can be used for actual medical expenses resulting from a crash, it can also be used for copays and deductibles of other insurance policies.
Is the Minimum Liability Coverage Enough?
This is a question that every individual driver will need to answer for themselves. Generally, the higher coverage limits and more types of coverage you add to your plan the higher your monthly premium will be.
One thing that’s important to remember: you will be responsible to pay out of pocket for any damages or medical expenses that exceed your policy limits.
Let’s say you are determined to be at fault in a crash where a $30,000 vehicle is totaled. The driver incurs $50,000 in medical expenses and you carried only the minimum liability coverage.
In this scenario, you would pay $15,000 out of pocket for the vehicle and $25,000 for the medical expenses. That’s a major hit to your finances, especially if you’re already struggling before the accident.
The lower your coverage levels, the more responsibility you may have in the event of a crash. And it can be detrimental to you and your family when you’re the at fault party.
Speak to Experienced Brokers about Minimum Coverage
It can be difficult to balance an affordable monthly payment with the protection you need in case of an accident.
Our team makes it our mission to help anybody get the car insurance they actually need. That means we provide the right amount of coverage without all the upsells and additives.
We’ve helped hundreds of families choose insurance plan that works for their situation and budget, whether that’s auto insurance, life insurance, or other types. Comparing with more than 40 different carriers, it’s easy to obtain the cheapest rates with us.
To speak with Lonny Britner and our empathetic team, call us today at (480)-672-0672.