Auto Insurance Coverage
Coverage
Regarding Injuries:
Liability coverage -
When you are at fault for an accident, your insurance company pays
for the other person's injuries and damages, up to the limits of coverage
you bought. Arizona statute requires that any vehicle driven on the
road be covered by a liability policy, the minimum amount being $15,000
per person, $30,000 per incident (your insurance company will pay up
to $15,000 for each injury claim, but not more than $30,000 total,
for all claims combined). It is recommended that you carry at least
$100,000 per person, $300,000 per collision.
Uninsured motorist coverage -
When you are injured by a driver who doesn't have any insurance coverage,
your own insurance company will pay for your injuries and damages.
In Arizona, your uninsured coverage will equal the amount of your liability
coverage, unless you sign a document waiving or reducing the coverage.
Underinsured motorist
coverage - When you are injured
by a driver who has auto insurance, but the fair value of your claim
is more than the at-fault driver's insurance coverage, your own insurance
company will pay the difference. In Arizona, your underinsured coverage
will equal the amount of your liability coverage, unless you sign
a document waiving or reducing the coverage.
Medical payments coverage -
When you or anyone in your household, plus any passengers in your vehicle,
are injured in an automobile accident, no matter who is at fault, this
coverage will pay all reasonable and necessary medical bills. If you
weren't at fault for the accident, this is in addition to what you
collect from the at-fault driver's insurance company.
NOTE:
Your Uninsured, Underinsured and Med-Pay coverage is "portable" meaning
that even if you are not in your own car, the insurance still applies.
Coverage
Regarding Vehicles:
Property Damage - Pays for damage you cause to someone else's vehicle.
The minimum amount required by law is $10,000.
Comprehensive - Pays for damage to your vehicle caused by anything
other than a collision, or for theft of your motor vehicle. A general
rule of thumb is that you must carry comprehensive and collision coverage
if you are still making car payments. If your vehicle is totally paid
off, then the coverage is discretionary.
Collision - Covers when your vehicle is damaged in an accident
with another vehicle.
Towing - Provides for towing of your vehicle in situations of
breakdown or automobile accident. This is similar to a motor club coverage;
however, it is often much less expensive through your auto insurance
carrier.
Car Rental - Provides for an amount to be paid toward a rental car
for a specific number of days if your vehicle is damaged and undriveable,
or is in a body shop due to a motor vehicle accident. It is recommended
that you obtain at least $25 per day coverage. If you are in need of
a vehicle larger than a compact, then you should increase your rental
car coverage to a minimum of $40 per day. Rental car coverage also
has a maximum total payout offered by the insurance carriers. Please
be sure to contract for a large enough total payout to cover a minimum
of a 30-day repair time.
Gap - Pays the difference on your auto loan between the total
loss fair market value of your vehicle and the total amount that you
still owe on your auto loan. The difference between what you owe and
what your car is worth is considered the gap referred to in this coverage. |
