When purchasing car insurance in Arizona, drivers have several coverage options to choose from beyond the state-mandated minimum liability insurance. Understanding these different types of coverage is essential for selecting a policy that offers the best protection for your unique situation. Here’s an overview of the key car insurance coverage options available in Arizona.
Liability Coverage
Liability coverage is required by law in Arizona and pays for damages you cause to others in an at-fault accident. Arizona mandates minimum liability limits of $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 for property damage (25/50/15). However, most insurers and financial experts recommend purchasing higher limits for better protection.
Collision Coverage
Collision coverage pays to repair or replace your own vehicle if it’s damaged in a collision with another car or object, regardless of who is at fault. If you have a loan or lease on your vehicle, your lender likely requires this coverage. Collision insurance includes a deductible, which is the amount you’ll pay out of pocket before insurance kicks in.
Comprehensive Coverage
Comprehensive coverage, sometimes called “other than collision,” protects your vehicle from non-collision related incidents like theft, vandalism, hitting an animal, or damage from weather events. Like collision coverage, comprehensive typically comes with a deductible and may be required by a lender.
Uninsured/Underinsured Motorist Coverage
Uninsured motorist (UM) coverage protects you if you’re hit by a driver who doesn’t have insurance, while underinsured motorist (UIM) coverage steps in when an at-fault driver’s liability limits are too low to cover your damages. In Arizona, UM/UIM coverage is not mandatory but is recommended as many drivers carry low limits.
Medical Payments Coverage
Medical payments (MedPay) coverage helps pay for medical and funeral expenses for you and your passengers after an accident, regardless of fault. It kicks in before health insurance and has no deductible. While optional in Arizona, this coverage provides extra peace of mind.
Rental Car Coverage
Rental reimbursement coverage helps pay for a rental car if your vehicle is in the shop due to a covered loss. This is optional but can be valuable if you depend on your vehicle and don’t have access to a backup car.
Roadside Assistance
Roadside assistance coverage pays for emergency services like towing, jump-starts, lockout service, and flat tire changes. Plans and coverage limits vary, so check with your insurer for specifics.
Choosing the Best Coverage
The right mix of car insurance coverage depends on factors like your vehicle, assets, risk tolerance, and budget. When selecting coverage, consider:
- Purchasing liability limits above the state minimum to protect your assets in case of a serious at-fault accident
- Choosing appropriate collision and comprehensive deductibles based on your savings
- Adding UM/UIM coverage if you want protection from uninsured drivers
- Opting for MedPay if you want extra coverage for medical bills
- Dropping collision and comprehensive on older, low-value vehicles to save on premiums
- Bundling coverage like rental car and roadside assistance if you don’t have access to backup transportation
An independent insurance agent can help you compare options from multiple insurers and craft a custom policy that fits your needs and budget. They can also help you take advantage of available discounts to reduce your premiums while still maintaining adequate protection on the road.