Are You and Your Family Covered?
There are many types of automobile insurance coverage available in Arizona. However, Arizona requires drivers to carry car insurance with at least $25,000 per person/$50,000 per incident bodily injury coverage and $15,000 property damage liability coverage. The required coverage is there essentially to provide financial protection to other people on the road in the event you cause an accident or harm to others.
Understanding Comprehensive Auto Insurance Coverage in Arizona
When I meet with potential clients I ask them what insurance coverage they have. Their response, more often than not, is they have “full coverage”. Well, what does that mean? In many cases it means they have the minimum insurance required by Arizona law. Unfortunately, in many situations, the minimum insurance required by Arizona law is not sufficient or cannot even be used to compensate my clients for their injuries and damages.
There are many variations of coverages across many different insurance companies. The suggested coverages I will be discussing should not be considered all inclusive and are just suggestions of possible additional coverages that may be worth checking into for you and your family.
Types of Coverage to Consider: Comprehensive Auto Insurance Coverage in Arizona
A common issue we see is that the insurance company for the person that caused the collision may not accept liability for weeks or months after the collision. This means they will not put my client in a rental, they will not remove the vehicle from the tow yard and they will not evaluate or begin fixing the vehicle. This can cause a variety of issues for my clients if they only have the state minimum coverage. One coverage that can be added to your policy is Rental Coverage. This coverage helps to pay for a rental car while your vehicle is being repaired or for a period of time while you look for a replacement vehicle if your vehicle is totaled. Another coverage that can be helpful is Collision Coverage. This coverage pays for your vehicle to be fixed or for the replacement value of your vehicle if your car collides with an object, including another vehicle. Your insurance will pay to repair the damage even if the collision is your fault. If the collision is determined to be the other driver’s fault and they have insurance coverage, your insurance carrier will subrogate or in other words, they will request reimbursement for what they paid to fix or replace your vehicle as well as anything they may have paid for a rental vehicle.
Protecting Your Finances with Comprehensive Auto Insurance Coverage in Arizona
Another common issue we see is that our client’s vehicle is damaged beyond repair and is considered a total loss. Sometimes, our clients owe more on the vehicle than the vehicle is worth. Unfortunately, if that is the case, people may have to make payments toward a vehicle they no longer own or are able to use. It may be worth looking into Gap Coverage when purchasing a vehicle. As we all know, when you drive your vehicle off the lot, the car depreciates in value. Gap coverage helps to pay off your car loan if your car is totaled and you owe more than your car’s value. This coverage will basically pay the difference between the total loss value and what you still owe on your vehicle.
In Arizona we have a high number of drivers that are uninsured. This means, if you were injured by an uninsured driver and you only have the State minimum coverage you may have no means of compensation for your injuries. Generally, when the other driver does not have insurance, they do not have assets from which we could use to satisfy a judgment. Therefore, it can be helpful to have Uninsured Motorist Coverage. UIM coverage applies if you were in a collision that was someone else’s fault and they do not have liability insurance. If you have this coverage, you can submit a claim through your own insurance company for the damages you sustained in the collision up to your policy limit.
Maximizing Your Protection: Comprehensive Auto Insurance Coverage in Arizona
There are also many times when my clients’ damages exceed or are greater than the policy limits of the negligent driver. If you carry the State minimum coverage, there may be no additional means of recovery to compensate you for your injuries. However, if you have Underinsured Motorist Coverage you have the ability to submit a claim to your insurance company for your damages in excess of the negligent driver’s insurance policy up to your underinsured motorist limits.
An important thing to know about Uninsured and Underinsured coverage is that they are considered no fault coverage meaning that you are not at fault for those incidents and those claims are not due to your fault. In Arizona, your insurance carrier is not able to raise your rates for making a UM or UIM claim under your policy. They may have other reasons to raise your rates at any time, but they cannot use those claims as a reason to raise your rates.
One last possible coverage I like to recommend is Medical Payment Coverage. This coverage helps to pay for you and your passenger’s medical expenses if you are injured in a crash regardless of who is at fault for the crash.
Keep in mind that not all insurance coverages are equal. Just because the coverage with one carriers is for the same amount of coverage as another carrier, does not mean it is the same coverage. Unfortunately, I read insurance policies almost daily, so I have a good idea of what exclusions each of the carriers build into their policies. Though, I do find some surprises from time to time when reading through the policies. So please, read through your policy and ask your agent questions until you understand what the policy covers and what your policy excludes
It is important that if you or a loved one have been injured in a car accident that you consult with an experienced Car Accident Lawyer that can explain your rights as well as what to expect during the process.
