Auto insurance is required for drivers in all 50 states. A policy is a must if you are in an accident or your car suffers damage through another event. However, many people become quite confused when they begin shopping for car insurance, because of the many terms and components involved in the policies. This article will help you make sense of the various auto insurance coverage options available in Arizona so you can make the best insurance choices for your needs.
Coverage for You
The first type of auto insurance coverage to consider is protection for you if you are injured in an accident. This type of coverage is called personal injury protection or PIP. Coverage will pay for medical expenses you incur and even make up for wages lost while you are out of work. However, many people already carry sufficient coverage through their health insurance and disability policies. If you are covered through these products, you may not need to pay much for PIP. The state of Arizona does not require you to add this component to your policy, so you can make the determination as to whether you need PIP.
Coverage for the Other Drivers
Bodily injury liability applies to the other people that might be affected in an accident. This coverage also applies to that person’s medical expenses and lost wages. It may also pay for “pain and suffering” that was incurred as a result of the accident. All 50 states require drivers to carry bodily injury liability as part of their auto insurance policy. In Arizona, the minimum amount required is $15,000 per person, up to $30,000 total.
Coverage for Property
In the event of an accident, there may also be damage to vehicles or other property like fences or structures. This is where property damage liability comes into play. This type of coverage is also required in all 50 states, since costs for such damage could get rather expensive. The minimum amount of coverage required in Arizona is $10,000.
Coverage for your Vehicle
Coverage for your car usually revolves around comprehensive and collision insurance. Comprehensive coverage protects your vehicle if it is stolen or damaged through a natural disaster. Collision covers you if your vehicle is damaged through colliding with another car or an object like a light pole. This coverage can drive up your insurance costs, and is often not pursued by those with older vehicles. Most states, including Arizona, do not require drivers to carry collision and comprehensive coverage.
Getting the right insurance coverage is the first step in driving responsibly. By considering coverage in each of these areas, you can rest assured you and your car are fully protected on the road.