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Why The Arizona Minimum Auto Liability
May Not Be Enough!
In Arizona, you are required to carry auto liability insurance (or post a bond) and provide proof of insurance before you can license your vehicle or renew your driver's license. If you are caught driving without insurance, you may have to pay a large fine and have your driver's license suspended.
However, the minimum liability coverage may not be adequate to protect you and your assets should you be involved in an "at-fault" accident. Motortrend Magazine reported in April, 2005, the average new car price is over $28,000. But Arizona only requires $10,000 minimum for property damage. And medical costs from a serious accident can easily run $100,000 or more. The minimum bodily injury limits in Arizona are $15,000 per person and a total of $30,000 per accident.
Consider the following scenario:
It's a typical Tucson afternoon, 5 p.m. and a brilliant sun setting
in the west. You look toward the sun before pulling into an intersection.
But the bright sun obstructs your view of an oncoming 2006 Ford Excursion.
The resulting accident injures all 3 passengers in the vehicle, and
causes $25,000 damage to the Excursion. The medical expenses for each
passenger $20,000, a total of $60,000 for all 3. Under a policy with
only minimum coverage, the insurance company will pay $30,000 total
for the injuries and $10,000 for the property damage, leaving a total
of $45,000 ($30,000 bodily injury and $15,000 property damage.)
Minimum
Liability Example |
|||
| Accident Scenario | Insurance Pays | You Pay | |
| Bodily Injury | 3 People With $20,000 each | $30,000 | $30,000 |
| Property Damage | $25,000 | $10,000 | $15,000 |
| Total | $85,000 | $40,000 | $45,000 |
Who is responsible for the unpaid $45,000? You are. You could lose your home, business or any other assets you might have. What if you don't own any assets of value? You may be forced to file bankruptcy which will adversely affect your credit for the next 10 years. It may affect your ability to get certain jobs.
While increasing your minimum coverage limits will increase your premiums, it may not be a significant amount. And you will have "peace of mind" knowing your assets are protected.
For a review of your current auto insurance or to request a quote, click here to complete the request form or simply call me at the numbers below. Along with your auto insurance review, I will send you a copy of my "Survivors Checklist", a checklist of everything your family needs to know in the event of your death.