Car insurance is one of the necessary evils of life, and knowing how to shop for the right car insurance for your needs will ensure you enjoy complete coverage for the best price. There are a number of components to a car insurance policy and it is important to know what each one means and how it covers you in the event of an accident or damage to your vehicle. This article will cover the primary components of auto insurance, including specific requirements for the state of Arizona.
Bodily Injury and Personal Property Liability
This part of your auto insurance policy covers you if you injure another person or someone else’s property while driving your vehicle. Liability coverage is required in all 50 states, including Arizona. In fact, the minimum requirements according to Arizona state law are $15,000 per injured person for bodily injury liability and $10,000 for property damage. The state also requires that someone must be found at fault in the event of an accident, and the responsible party and his insurance company will be responsible for medical bills and repairs.
Personal Injury Protection
This component of your auto insurance policy covers you and your passengers in the event you are injured in an accident. However, some people find that their health and disability insurance cover them sufficiently in this area and they do not need to invest in personal injury protection or PIP. The state of Arizona does not require that you purchase PIP as part of your auto insurance policy.
Collision and Comprehensive
Collision insurance covers you in the event of any type of accident, even if your car runs into a utility pole or other inanimate object. Comprehensive coverage comes in handy if your car is stolen or involved in a natural disaster like a flood or tornado. Since collision and comprehensive coverage can raise insurance rates considerably, many people with older vehicles opt out of this coverage. However, keep in mind that if you rent a car, you may want to purchase collision and comprehensive from the rental company to protect you while you are driving their vehicle.
This coverage handles situations where the other motorist involved in the accident was not carrying a current policy. It also covers you in the unlikely event of a hit and run accident. While Arizona does not require drivers to carry uninsured motorist coverage, it can come in quite handy when you consider that many drivers on the road may not carry a current insurance policy.
Understanding the basics of your auto insurance policy is the first step to heading out on the road with the coverage you need. With this information under your belt, you can rest assured you and your vehicle are fully protected.