Auto Insurance in AZ: Everything You Need to Know

Auto insurance is a legal requirement for all drivers in Arizona. Under state law, drivers must carry insurance that covers at least $15,000 for bodily injury per person, $30,000 for bodily injury per accident, and $10,000 for property damage per accident. However, these minimum requirements may not be enough to fully protect you in the event of an accident. In this article, we’ll go through the basics of auto insurance in Arizona, what to look for in a policy, and some frequently asked questions about auto insurance in AZ.

Auto Insurance Coverage in AZ

Auto insurance in AZ comes in different types of coverage. Let’s have a look at them:

Liability Insurance

Liability insurance is the minimum required coverage by Arizona state law. It covers the costs of damages or injuries you cause to another person or their property in an accident. It is important to note that liability insurance does not cover your own medical expenses or damages to your own vehicle.

While minimum liability insurance may be sufficient for some drivers, it is advisable to get higher coverage limits to protect your assets in case of a lawsuit. You can also consider getting an umbrella policy, which provides additional liability coverage.

Collision Coverage

Collision coverage pays for damages to your own vehicle resulting from a collision with another vehicle or object. It is not required by law in Arizona, but if you have a car loan or lease, your lender may require you to have collision coverage. Collision coverage comes with a deductible, which is the amount you have to pay out of pocket before the insurance kicks in.

Comprehensive Coverage

Comprehensive coverage provides protection against non-collision events like theft, vandalism, fire, and weather-related damages. It also comes with a deductible.

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage pays for damages and injuries caused by a driver who does not have enough insurance or no insurance at all. It is not required by law in Arizona, but it is highly recommended as there are many uninsured drivers on the road.

Now that you know the types of coverage available, let’s look at some of the factors that can affect your auto insurance premiums in Arizona.

Factors Affecting Auto Insurance Rates in AZ

The following factors may affect your auto insurance rates in Arizona:

Driving Record

Your driving record is one of the most important factors that insurers use to determine your rates. If you have a clean driving record, you are likely to pay lower premiums. On the other hand, if you have a history of accidents, tickets, or DUIs, your premiums may be higher.

Age and Gender

Younger drivers and males are statistically more likely to be involved in accidents, so they may pay higher rates than older drivers and females.

Location

Where you live can also affect your premiums. Areas with higher crime rates or traffic congestion may have higher premiums than less populated areas.

Type of Vehicle

The make and model of your vehicle can also affect your premiums. Sports cars, luxury cars, and SUVs are typically more expensive to insure than sedans or minivans due to their higher risk of theft or accidents.

Credit Score

Your credit score can also be a factor in determining your premiums. Insurers consider individuals with higher credit scores to be more responsible and less likely to file claims.

FAQ about Auto Insurance in AZ

1. Do I have to carry auto insurance in Arizona?

Yes, auto insurance is required by law in Arizona.

2. What is the minimum auto insurance coverage required in Arizona?

Arizona drivers must carry insurance that covers at least $15,000 for bodily injury per person, $30,000 for bodily injury per accident, and $10,000 for property damage per accident.

3. Should I get more than the minimum coverage?

While the minimum coverage may be sufficient for some drivers, it is advisable to get higher coverage limits to protect your assets in case of a lawsuit. You can also consider getting an umbrella policy, which provides additional liability coverage.

4. How can I save money on auto insurance in Arizona?

You can save money on auto insurance in Arizona by comparing quotes from different insurers, taking advantage of discounts such as safe driver, multi-policy, and multi-car discounts, and opting for higher deductibles.

5. What should I do if I am involved in an accident?

If you are involved in an accident, make sure to exchange insurance and contact information with the other driver, take pictures of the damages, and file a police report if necessary. Contact your insurance company as soon as possible to report the claim.

Auto insurance in AZ is a vital coverage that protects you against financial loss in case of an accident. By understanding the different types of coverage available, the factors that can affect your premiums, and taking advantage of discounts and cost-saving strategies, you can find a policy that meets your needs and budget.