Auto Insurance in Cottonwood, AZ
Automobile liability insurance is required for motorists in Arizona. Proof of financial responsibility is needed when registering a vehicle. This is critical for protecting people and property in case of an accident. It is important to have a basic understanding of car insurance.
We represent insurance products from over 40 of the best carriers in the market.
So if you accidentally hit a tree, get into a fender bender or bump into another car, you can rest easy knowing that you have an automobile insurance policy that’s got your back.
Even the most cautious drivers are sometimes involved in a motor vehicle accident. Unfortunately, the consequences are often significant damage to property, severe injuries, and even death.
State Required Minimum Liability Coverage
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Each motor vehicle driven must have liability insurance from a licensed insurance company.
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This also applies to motorcycles, mopeds and golf carts.
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The mandated minimums are summarized as 15/30/10.
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Bodily injury coverage for one person of $15,000
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Bodily injury coverage for multiple people of $30,000
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Coverage for damage to property of $10,000
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Liability coverage is intended for injuries and property damage to others when you are found to be liable in an accident.
This coverage does not pay for your injuries or property losses.
State Required Minimum Liability Coverage
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Each motor vehicle driven must have liability insurance from a licensed insurance company.
-
This also applies to motorcycles, mopeds and golf carts.
-
The mandated minimums are summarized as 15/30/10.
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Bodily injury coverage for one person of $15,000
-
Bodily injury coverage for multiple people of $30,000
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Coverage for damage to property of $10,000
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Liability coverage is intended for injuries and property damage to others when you are found to be liable in an accident.
This coverage does not pay for your injuries or property losses.
New Minimums for Liability Insurance in Arizona In 2020
The Arizona Legislature decided that it was finally time to increase the minimum requirements for auto liability coverage. Governor Ducey agreed as he signed the first such increase since 1972! The new minimum coverage amounts for bodily injury coverage will be $25,000 per person and $50,000 per accident. The minimum for property damage liability was also increased to $15,000.
Governor Ducey had vetoed a similar measure for increase last year. The primary concern at that time was that those with low incomes would struggle to afford the rising policy premiums.
Possible Sources of Auto Insurance
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Direct from an insurer: In addition to having their insurance products sold through agents, many insurance companies sell direct to consumers. Quotes are generally available over the phone or online. A potential drawback is not having the service and support from a local agent.
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Through captive insurance agents: A captive agent represents a specific insurance company, typically a larger regional or national carrier. A potential drawback is that they may not always have competitive rates due to limited policy options.
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Through independent agents: An independent agent may be the “best of both worlds.” They are able to consider multiple carriers that are competing to find a policy that is a great value. Also, you still have the customer service and support from a local agent.
Advantages of Purchasing Through an Independent Insurance Agency
Policy pricing may vary considerably among the many insurers in the market. An independent agent will find you a policy that provides excellent coverage at a great value. They also will save you the time of obtaining multiple quotes and may identify money-saving discounts. These agencies are also likely to offer other products such as home insurance, business insurance, and others.
What are Deductibles?
Collision and comprehensive policies are used to cover damages you incur. These policies may have deductible amounts that the insured must pay before the insurer does. Common deductible amounts range from $500 to $1000. If your vehicle was in a minor “fender bender” that costs $300 to repair, you would simply pay for this “out-of-pocket”. Those seeking to reduce their insurance premium may consider selecting a higher deductible amount.
Penalties for Operating Without Insurance
As we discussed, the law requires all drivers to maintain the 15/30/10 minimums of liability insurance. During a traffic stop or the scene of an accident, law enforcement may ask you to show proof of coverage. Penalties typically include fines and temporarily suspending your driver’s license and vehicle registration. After the suspension period, the driver must obtain an SR-22 certificate. An SR-22 is essentially higher risk insurance that must be secured to restore driving privileges. Insurance companies are required to notify the state when an auto policy is canceled or otherwise terminated. This will likely trigger an inquiry regarding the status of the driver’s mandatory coverage.
Costs of Car Insurance
When you obtain a car insurance quote from a carrier, they may review a host of factors to determine your premium. In 2017, the average annual premium in Arizona was $843.92. Some of the variables potentially considered include:
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The types of coverage chosen: The least expensive option is the state minimum 15/30/10 coverage.
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Amount of the deductible chosen
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Recent driving record and claims history: Those with infractions on their driving record or a history of insurance claims are likely to pay more.
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The value of the vehicle that you are covering.
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Demographic information such as your age, gender, and marital status: for example, teenage males are more likely to drive in a reckless manner.
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Your credit history may be a factor. Data shows a correlation between poor credit and the likelihood of filing an insurance claim.
Possible Discounts Available
Discounted insurance rates are available from most carriers. One of the most commonly available is for those who “bundle” insurance policies. Bundling is when you purchase multiple products from the same company such as home insurance or life insurance. Those who are 65 years of age or older may receive senior discounts. Other discounts may be available to military members or those who complete a defensive driving course.
Actual Cash Value vs. Replacement Cost Value
This is a consideration for drivers with “full coverage” insurance when their vehicle is “totaled.” In this situation, the insurer will typically provide you compensation based on the market value to obtain another vehicle. When the policy is based on actual cash value, the calculation is based on the replacement cost minus depreciation.
Some companies now offer “full replacement cost” or “guaranteed new vehicle replacement” programs that ensure you can buy the newest model. Expect to pay slightly higher premiums for these policies.
Understanding the Comprehensive Loss Underwriting Exchange (C.L.U.E)
The CLUE is a central database that shows any history of insurance claims filed in the prior seven years. Insurers will consider your claims history when determining rates.
Arizona’s Automobile Insurance Plan (AZAIP) For High-Risk Drivers
The AZAIP was formed in 1952 to assist drivers having difficulty obtaining auto insurance due to being considered as “high-risk.” All insurance companies doing business in Arizona must participate in the plan to some extent. This allows for the policies issued to high-risk drivers to be spread among all the carriers in the market.
Understanding Rental Car Insurance
In years past, the majority of credit card providers offered automobile insurance coverage to their cardholders. Today, many credit cards no longer offer this benefit. Your existing liability insurance coverage will generally apply to any vehicle that you are legally driving. The area of concern is coverage for the rental car if damaged, stolen, etc.
It is critical when renting a vehicle that you check the details of your individual policy or consult with your agent. In many cases, it may be necessary to buy loss protection coverage from the rental car company.