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May 08

Arizona Auto Insurance Laws, Minimums, Requirements

the state of Arizona?

-Arizona requires that every motor vehicle operated on its highways be covered by liability insurance through a company that is authorized top do business in Arizona. 
-In the state of Arizona, golf carts, motorcycles, and mopeds are all considered motor vehicles and must carry at least the minimum levels of liability insurance. 
-In the state of Arizona, minimum levels of liability insurance are $15,000 bodily injury for one person and $30,000 for two or more persons, and $10,000 property damage liability.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Arizona, your policy must include minimum liability coverage of: 
15,000 bodily injury liability for one person in an accident,
$30,000 for bodily injury to two or more persons in an accident,
and 
$10,000 property damage in an personal injury accident

What are the Rental Car Insurance Requirements?

In the state of Arizona, every motor vehicle on its highways must be covered by insurance. Most insurance policies cover car rentals as well as most credit cards. If your insurance policy or credit card does not cover car rentals, you must purchase the minimum liability coverage from the car rental company.  

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

In the state of Arizona, all automobile insurance companies must offer uninsured motorists (UM) and underinsured motorist coverage (UIM) to every policyholder. Uninsured/Underinsured coverage provide protection when an at-fault driver does not carry enough insurance coverage, or does not have any insurance at all. While this type of insurance coverage is not required by Arizona law, it is recommended. If you elect not to carry Uninsured/Underinsured Motorists coverage, Arizona law requires that the insurance company provide a declaration page indicating that you have elected not to carry these coverages.  

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Arizona, exclusion from coverage of a driver in a household is permitted. This means Arizona car insurance companies may exclude certain driver’s from your household if not specifically listed on the application. In Arizona, this is called “Household,” “Family,” or “Intra-Family” Exclusion. 

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

In the state of Arizona if a driver’s insurance lapses or cancels, the driver must either pay the premium in order for the policy to be reinstated or if the policy cancels, the uninsured must obtain a new auto insurance policy immediately in order to operate a motor vehicle in the state. If the driver feels that his policy has been cancelled unfairly, the state allows 10 days within receipt of the cancellation or non-renewal notice to write to the Director of Insurance, State of Arizona, Department of Insurance, 2910 North 44th Street, Suite 210, Phoenix, Arizona, 85018, stating the objection to the insurer’s action. 

If a driver has tried several insures and cannot find coverage as a result of a lapse or cancellation, the driver may be insured through the Arizona Automobile Insurance Plan. Driver’s can apply for coverage through the plan by contacting any licensed property and casualty agent or producer. For general information on the Arizona Automobile Insurance Plan, call or write to: Western Association of Automobile Insurance Plans, P.O. Box 7917, San Francisco, CA 94120-7917–(800) 227-4659, or visit their official website.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Arizona, auto insurance companies are permitted to use Personal Credit History to select applicants and to determine rates. Arizona auto insurance companies use credit score to assess one’s risk of losses.  

Is the state a No Fault or Tort state? What does either mean to the policy owner?

Arizona is a Tort state. This means that the driver who is at fault in the accident must pay the victims medical expenses and the victim has the ability to file a court claim against the driver found to be responsible for the accident for any additional and related damages including pain and suffering and lost wages. Because Arizona is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums.  

What is the average auto insurance premium in the state of Arizona? As of what year?

As of 2006, Arizona’s resident’s average insurance premium was approximately $913, the 14th most expensive in the nation. This was down 1.7% from the previous year. The national average was $817. 

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