What is Considered Full Coverage Auto Insurance in Arizona?

In Arizona, “full coverage” auto insurance typically refers to a policy that includes more than the state’s minimum liability requirements.

Having the right auto insurance is not just a legal necessity but also a crucial part of ensuring peace of mind on the open road.

Join us as we look into the intricacies of full coverage auto insurance in Arizona, where the minimum coverage laws are just the starting point.

An image of what's considered full coverage auto insurance in Arizona
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What is Considered Full Coverage Auto Insurance in Arizona?

In Arizona, the term “full coverage” commonly refers to a trio of insurance types: liability, collision, and comprehensive.

Yet, it’s important to note that insurance providers may offer variations of these policies.

Additionally, they might present extra services such as towing, which extend past the standard scope of full coverage.

Full coverage usually adds comprehensive and collision insurance to the liability coverage.

Note that, comprehensive insurance covers damage from non-collision events like theft or natural disasters, while collision insurance covers damages to your vehicle in the event of an accident, regardless of fault.

The average cost of full coverage car insurance in Arizona is about $224 per month.

However, rates can vary based on your driving history, the insurance company, and other factors.

Therefore, it’s always a good idea to compare quotes from different insurers to find the best rate for your needs.

Remember, the cheapest option may not always provide the best coverage, so consider your coverage needs carefully.

What are the Coverage types in Full Coverage Auto Insurance

The Minimum Liability Coverage

This is the basic requirement for auto insurance in Arizona.

Its main purpose is to ensure financial responsibility for any damage caused by you in a car accident.

The state-mandated minimums for liability coverage are as follows:

  • $25,000 for bodily injury or death of one person per accident
  • $50,000 for bodily injury or death of multiple people per accident
  • $15,000 for property damage

Additionally, Arizona mandates coverage for uninsured and underinsured motorists (UM/UIM), which protects you if the other driver lacks sufficient insurance.

The minimum coverage amounts for UM/UIM match those of liability insurance.

Remember, while these are the minimums, you have the option to increase your coverage limits.

However, remember that liability insurance only compensates the other party’s damages.

Your compensation is limited by the other driver’s insurance coverage, but purchasing additional coverage can provide you with greater financial protection in the event of an accident.

Comprehensive and Collision Insurance Coverage

Comprehensive and collision insurance are often bundled together in auto policies.

These coverages are designed to finance repairs or replacement of your vehicle, not to compensate for personal injuries.

They’re similar to having a safety net that allows you to replace your car or manage urgent repairs swiftly.

Typically, you’ll be responsible for a deductible before insurance kicks in.

Collision insurance ensures you receive funds to mend or replace your vehicle after an accident, irrespective of who was at fault.

Whether it’s a solo incident where you collide with an object, or a crash caused by another driver, collision insurance comes into play.

On the other hand, comprehensive insurance deals with vehicle damage from incidents other than collisions.

This includes situations like natural events causing damage, theft, or vandalism.

It’s the coverage that steps in when unexpected damages occur outside of driving mishaps.

Other Additional Coverages

In Arizona, full coverage insurance typically encompasses liability, UI/UIM, collision, and comprehensive insurance.

Beyond these, there are extra options available for broader protection:

  • Gap insurance: This covers the remaining balance of your auto loan or leases if your vehicle is totaled or stolen, and you owe more than its current value.
  • Rental car coverage: If you have full coverage, your policy might extend to rental vehicles. It’s essential to check with your insurer for the specifics of this extension.
  • Towing and roadside assistance: These services are often included in full coverage plans and can be an alternative to memberships like AAA.
  • OEM endorsement: Adding this to your policy ensures that repairs are made with original manufacturer parts.
  • Glass coverage: This can be particularly useful if you have a high deductible, as it may cover the cost of glass repairs or replacement.

How to Secure Affordable Full Coverage Auto Insurance in Arizona.

Seeking out cost-effective full-coverage car insurance is crucial, regardless of the policy you select.

Here are strategies to reduce your premiums and secure affordable full-coverage car insurance:

Shop for the best price: Before buying a policy, compare car insurance quotes. Ensure that the quotes are for identical coverage types and limits for a fair comparison. This practice alone could lead to substantial savings.

Opt for higher deductibles: Choosing a higher deductible can lead to savings. The deductible is the sum subtracted from an insurance payout. Deductible options for collision and comprehensive insurance often include amounts like $500 and $1,000.

According to an analysis by Forbes Advisor, drivers who raise their deductibles could save anywhere from 7% to 28% annually. However, a higher deductible also means receiving a smaller reimbursement from your insurer for collision or comprehensive claims.

Keep a solid credit record: Many insurers consider your credit when determining policy prices, using a credit-based insurance score. This score differs slightly from a regular credit score and is believed to predict claim frequency. Enhancing your overall credit can improve your insurance scores. Note that not all states permit the use of credit-based insurance scores by insurers.

Utilize discounts: Discounts are widely available for bundling policies and insuring multiple vehicles. Look for discounts for safe driving, academic achievement, vehicle safety features, and even for paperless billing or automatic electronic funds transfer (EFT) payments.

Conclusion

So what’s considered full coverage auto insurance in Arizona? The road to adequate protection is paved with a variety of coverage options.

From essential liability insurance to the comprehensive safety net of collision and comprehensive coverages, each policy component plays a pivotal role in shielding you from the financial potholes of unexpected events.

Remember, while Arizona sets the minimum coverage requirements, the true essence of “full coverage” is made to fit your unique driving needs and risk profile.

So, before you rev up your engine and head out onto the vast Arizona highways, take a moment to ensure your insurance policy is as ready for the journey as you are.

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