Understanding Auto Insurance in Arizona

Auto insurance is something that everyone has to deal with at some point. In many states, it’s illegal to drive without being insured. This is to protect you and the other drivers that may be impacted by an accident. Having the appropriate level of insurance coverage can make sure that the vehicles and property involved in the accident can be replaced in full. This absolves you of liability and also covers the cost of any medical bills generated by the accident. As long as you weren’t impaired or guilty of any gross negligence, the insurance company will cover anything outlined in your auto insurance policy. This is why it’s very important to have a policy that’s been tailored specifically to your needs. Different drivers require different levels of coverage.

A professional insurance agent will understand this, and can help you choose the best policy for you. If you are purchasing the car through a finance company, they may require an increased level of coverage. This is to make sure that they can make their money back in case of an accident that totals the vehicle. Every state has its own set of requirements. Many of these are the same, but there are a few states that deviate from the norm. Arizona is one of these states. Most states have a zero-tolerance policy for driving without insurance. This is illegal, and no substitutions are accepted. In Arizona, a person has the option of showing proof of insurance, a bond, or proof that they have $40,000 dollars in cash ready on hand. All of these can be shown, and will be accepted as proof of personal financial responsibility in the event of an accident.

Like most other states, Arizona requires that a driver is able to show proof of two types of coverage. A qualified Arizona auto insurance agency can explain the minimum amounts required legally. Bodily injury coverage will be required to pay for any medical bills generated by an accident that is the policy holder’s fault. If the accident is the fault of the other driver, then their insurance policy will be required to pay. These policies will only pay up to the amount that has been specified. If costs exceed this amount, then the responsible party may have to pay for any additional charges. This can result in a civil lawsuit. Making sure that your policy can cover any situation is extremely important.

The second type of required coverage is the property damage. This is the portion of the policy that will pay to repair or replace the other person’s vehicle if an accident is your fault. It can also cover residual damage to anything else that may be hit in the process. Again, a good insurance agency can give you insight into the minimum coverage amounts. The minimum is rarely the best choice unless you hardly ever drive. The appropriate amount of coverage will be determined by the amount of driving that you do on a daily basis, and any requirements set forth by your finance company.

Another excellent addition to your auto insurance policy is the uninsured or underinsured motorist clause. This covers all of your expenses in the event that the other driver causes an accident and isn’t insured, or is grossly underinsured. This can save you from having to wait until the responsible party pays the difference to start paying medical bills or to replace your property. This is one addition that is a good idea regardless of the state that you live in. The best way to make sure that you’re getting the coverage you need is to find an insurance agent who’s licensed in Arizona. They can help you find the right coverage at the right price.

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