Important Financial Update on Auto Insurance Policy Limits for Arizona Drivers

New Arizona Law in Auto Insurance will Likely result in premium Increases. On July 1st, 2020, the minimum limits for auto insurance policies increased to:

$25,000 for one person sustaining bodily injury or death in an accident,

$50,000 for two or more persons sustaining bodily injury or death in an accident, and

$15,000 for damage to others’ property,

People who reside and drive in Arizona should brace themselves for higher auto insurance premiums. A new law is increasing the minimum amount of coverage required and this will result in higher rates for most drivers.

Arizona Minimum Car Insurance Speak

Before July 1, 2020 car insurance was described as minimum coverage limits required by Arizona law are often referred to as a ratio: 15/30/10. Coverage of $15,000 is set for the injury of one person, $30,000 is set for the injury of two or more people, and $10,000 is set for car and property damage.

All new auto insurance policies issued on or after July 1, 2020 must be issued at limits of no less than 25/50/15, as stated above. All auto insurance policies renewing on or after July 1, 2020 that have the 15/30/10 limits will automatically be adjusted to the higher limits of 25/50/15.

If your current policy limits are below the new limits, your renewal premiums will likely increase to correspond to the increase in coverage.

If you have uninsured and/or underinsured coverages on your policy at the minimum 15/30 limits, your insurer will automatically increase these coverages to match the new minimum 25/50 limits and adjust your premiums accordingly. This is extremely important for you to carry uninsured and/or underinsured coverage because there may be an increase in drivers not carrying insurance but still operating their motor vehicles in Arizona due to this predicted increase of insurance premiums.

Please remember to inquire about adding Medical Payment Benefits to your auto insurance policies. This additional coverage is extremely cheap and incredibly beneficial if you are injured in an auto accident.

We advise every resident of Arizona to call and check on their auto insurance coverage to determine if in fact your premium as well as your coverage did increase. It’s much better to know these facts before you are involved in a car accident in Arizona. If your premiums di increase you may be able to save some money by bundling other insurance products. We especially advise you to check on what insuring your children who are still living at home with you.

Shopping For The Cheapest Coverage May Not Be In Your Best Interest.

Cheaper insurance rates typically equate to less coverage or higher deductibles for the same type of auto accident and the injuries you may suffer.

You can protect your personal expenses if you or a loved one are involved in a car collision by exploring several optional insurance plans, such as Medical Payments, Uninsured Motorist, Collision, and Comprehensive coverage.

Med Pay will compensate you for medical payment coverage for your as well as your passengers’ medical bills, irrespective of who is at fault in an accident. Uninsured Motorist coverage pays for your and your passengers’ medical bills and property damage if the driver at fault has insufficient liability insurance coverage or no insurance at all. Please note uninsured motorist coverage would cover you in the event of a hit-and-run accident.

Did You Know Car Insurance Rates Vary in Arizona?

All insurance companies utilize “local factors” that decide the cost of car insurance in a given area/city. Insurance companies gauge an area’s population, traffic congestion, and frequency of insurance claims, add in the costs of collision repairs and medical bills. This makes car insurance more expensive in big cities with dense traffic than in rural areas or small cities with light traffic generally.

Besides the above there are several other factors that insurance companies take into accord before determining what your insurance premiums will be. You may know some of them like Age, male or female, married or single, clean driving records, how many miles you commute to work or school, the age of your car new and used and even your credit score!

Can’t Find Car Insurance Because of Bad Driving History

US News reports If you have applied for car insurance and been denied by multiple companies, you may want to consider buying coverage through the Arizona Automobile Insurance Plan. This program automatically assigns applicants to an insurance company and provides them with the minimum limits of liability coverage. It is designed to help shoppers with a poor driving record or multiple insurance claims. These policies are typically much more expensive than those offered in the voluntary insurance market, though.

Please be aware Arizona is an at fault state meaning who ever is considered at fault will be paying the bills both medical and collision costs and even though you are not required to carry uninsured/underinsured we highly recommend that you purchase as much as you can afford. Insurance may be expensive but it is the best deal going the day you need it!

If You Or A Loved One Are Involved In A Car Collision Call Us Now 602-508-5511