Required auto insurance coverages in the state of Arizona include:

Bodily Injury Liability Insurance: When you are at fault in an accident, this type of auto insurance will pay for any medical expenses that other passengers or drivers incur as a result of the accident. This is very important insurance to have for drivers. If you aren’t properly insured, and the medical expenses exceed your coverage limits, you will be liable for medical bills over your policy limits. This can have a huge impact on your financial future.

Property Damage: If you are at fault in an accident, this type of auto insurance pays to replace or repair damaged property (whether a vehicle or physical property damage) that was caused by the accident. If you aren’t properly insured, and expenses exceed your coverage limits, this too can have an impact on your financial future.

How can having too little insurance hurt you financially?

If you do not have enough coverage on your Auto Insurance policy, and you are at fault in an accident where the medical expenses and property damage exceed your auto insurance limits, you can actually be sued, and the other party can try to recover damages in court. Just the cost of an ambulance ride to an emergency room where a surgery is required from an accident could easily exceed Arizona state minimum limits (25K/50K/15K). This is why we often recommend higher limits of liability on your auto insurance policies. It will cost you more than the state minimums will, but if you are a homeowner, have assets, or own a business, we recommend a minimum liability limit of 100K/300K/100K. This will cost you less than going out for coffee every day will, and it will provide you peace of mind for life!

Optional auto insurance coverages in the state of Arizona include:

Medical Payments: What happens if you need medical care, but the accident wasn’t your fault and the other driver is under insured? If you have medical payment coverage, regardless of fault, you can be covered for needed medical care when you are involved in an accident. This coverage can be applied to your health insurance co-pays, co-insurance, and deductibles. Our clients are grateful they have this coverage when they need help paying for Physical Therapy and Chiropractic visits and other medical expenses. This is an optional auto insurance coverage, it is not required by the state of Arizona.

Comprehensive (Other than Collision) Coverage: Was there damage to your car that wasn’t the fault of a collision? Did a tree limb fall and break something? Was your car stolen or vandalized? Did your car start on fire or was in a flood? Comprehensive Coverage can pay to repair or replace your damaged car from perils other than collision. This is optional coverage, it is not mandatory by the state of Arizona auto insurance requirements, but it can be a smart choice depending on your situation and where you house your vehicle.

Collision Coverage: If you have a newer car, or don’t have cash on hand to repair or replace a vehicle if you were to get in an accident, and it is your fault, Collision Coverage comes in very handy. This is optional coverage, it is not required in the state of Arizona, however if you have a loan on a car, your financial institution may require it.

Towing & Labor Coverage: Need a tow when your car breaks down or your battery leaves you stranded? Towing and labor coverage can be an inexpensive option to get the help you need when you need it most. This is optional coverage and auto insurance policy rates vary based on policy limits.

Rental Reimbursement: Will you need a rental car while your car is being repaired when it is in an accident? Not everyone has the cash on hand to pay for expensive car rental rates when a car takes longer than expected to repair. This optional coverage can help pay for the cost of a rental. Rates vary based on your requirements for a rental.

Full Glass Coverage: This is optional coverage, but many auto owners in Arizona are glad they have it, where rocks flying at you on the freeways are a common occurrence. There is no deductible required to fix or replace glass on a covered vehicle with Full Glass Coverage. We will warn you to be careful not to abuse this coverage by calling for minor chips or being careless with your vehicles windshield. The reason being, when you are looking for new insurance, many insurance carriers will review how many glass claims an insured has filed and your coverage could be limited or rejected in the future.

Rideshare Auto Insurance Coverage: If you drive for Uber or Lyft, make sure that you ask about this coverage.