State Of Arizona Auto Insurance Requirements
Drivers who purchase Arizona auto insurance must be aware of the state's legal requirements before signing a contract. While it is rare to find an insurance agent who will not inform drivers of the requirements, it is not rare to be sold a policy with incomplete coverage. Drivers may choose to buy a policy with less-than-minimum allowances; by law, the agent is allowed to sell it. This is why it is important to be vigilant and keep up with the state requirements for Arizona auto insurance.
Minimum Requirement Specifications
In the state of Arizona, all drivers must currently carry a liability policy that covers bodily injury and property damage to another party involved in the accident. Drivers must have a policy that allows $15,000 per injured individual in an accident. The minimum total amount per incident is $30,000. In essence, this would cover two injured parties if their hospital bills each totaled the $15,000 allowance. Property damage must have an allowance of at least $10,000. When driving without insurance or with a policy that has less-than-sufficient coverage, drivers will be ticketed and face temporary suspension of their license and driving privileges. After several months, a reinstatement fee and process will happen, in which the driver will regain their license. After this, it will be necessary to have an assigned risk policy, which is much different from the state's requirements. Not only will the allowance amounts be higher, but the policy will cost almost double the amount of a regular policy.
Considerations For State Minimums
While it is acceptable in the eyes of the law to carry only the minimum amount of insurance, there are other factors to consider. One of the most important is an auto loan. Drivers who wish to purchase Arizona auto insurance after signing the loan papers for a new vehicle must read their contract thoroughly. In the contract, the bank will designate what type of insurance must be carried. Any lender's requirements will always include higher allowance amounts than the state minimum for a liability policy. They will also require a comprehensive policy that covers a wide range of potential damages. Failure to comply with the lender's requirements may result in repossession of the vehicle.
Additional Important Coverages
When buying Arizona auto insurance, it isn't necessary to purchase personal injury protection coverage or uninsured/underinsured driver coverage. Both of these are beneficial, as the rates of accidents that happen without them are high. In most states, they are high enough that this is mandatory. It is important to listen to insurance agents when they discuss the numbers involved in these policies. To be safe, it is also best to purchase higher allowance amounts than the state's minimum requirements. This is because Arizona determines accident judgments through tort law, meaning the driver who is found to be at fault will have to pay for all damages for other parties involved, as well as passengers in their vehicle. Uninsured/underinsured driver insurance will cover the damages in an accident that happens while a friend or family member is driving, assuming they don't have their own Arizona auto insurance policy. Any remaining damages that cannot be paid after insurance allowances are spent will become the sole responsibility of the driver at fault.
Before buying an Arizona auto insurance policy, obtain several quotes. Consumers will always find that identical policies will not be identical in price. Some may vary by several hundred dollars. The price, or premium amount, will be determined by the driver's age, their driving record and who underwrites the policy. Not all underwriters have the same individual rules relating to age and driving history.
