Arizona is a fault insurance state this means that it operates under the fault auto insurance model. Many states operate under a no fault system which stops policyholders from taking a case to court unless there are extreme circumstances involved, however this is not the case in Arizona, this model provides several options for drivers involved in auto accidents.
- They can make a claim with their insurance company.
- They can make a claim with the insurance company of the driver at fault.
- They can bring a personal injury claim to the driver at fault.
Arizona auto insurance minimum requirements
Auto insurance in Arizona is mandatory for all residents of the state. There are also minimum requirements. Drivers are held responsible to ensure that their policy from https://arizona-insurance.website/arizona-auto-insurance-quotes/ meets these requirements.
- Bodily Injury Liability
The minimum coverage states $15,000 per person, $30,000 per accident when there is more than one injured party and $10,000 for property damage. The point of this is to offer the policy holder some protection if they have been found to be at fault for an accident in which another individual, a group of individuals or any property was damaged. Therefore, this will enable the at fault driver to cover the cost of any medical bills, compensation and also property repairs. This is the very basic insurance that is necessary, however it won’t actually provide any protection to drivers themselves if they were at fault. There is the possibility to add further coverage options such as ‘collision coverage’ which will ensure that drivers can make repairs to their vehicles even if the fault of a collision was theirs. There is also the option to add comprehensive coverage to an auto insurance policy. The benefit of this is that if a vehicle is damaged but a collision was not involved e.g. by extreme weather or vandalism the policy holder will be financially protected against these events.
Financial Responsibility Requirement
The financial responsibility requirement is put in place by the State and details that all drivers must take financial responsibility for their vehicles. The easiest way to do this is to purchase insurance and presenting the evidence of this to the Department of Motor Vehicles (DMV), however there is also another option available. This option is referred to as self-insurance and involved purchasing a bond of at least $40,000 and presenting the proof of this to the DMV.