If you drive a golf cart, moped, or any other motorized vehicle on Arizona roads, the state requires you to have liability insurance in case you hurt someone or damage property. The Grand Canyon State has minimum requirements for insurance coverage. Still, you can choose from different extra insurance coverages that will protect you financially better if you get hurt in a car accident, damage your car, or are at fault in an accident.
This article tells you what kinds of car insurance are required in Arizona and which ones are more cost-effective for you. We’ll also look at the average cost of auto insurance in Arizona.
If you own a vehicle in Arizona having proper insurance coverage is essential. You’ll often hear terms like “full coverage” insurance mentioned when talking to agents or getting quotes. But what exactly does full coverage entail in AZ?
This comprehensive guide will explain everything you need to know about full coverage car insurance in Arizona. We’ll cover
- What full coverage includes
- Average cost of full coverage
- Whether full coverage is required
- When full coverage makes sense
- Tips for finding the best full coverage rates
What Does Full Coverage Car Insurance Include?
Full coverage is an informal term used by insurance companies and agents. There is no single standardized definition. But in general, full coverage insurance includes:
- Liability coverage
- Comprehensive coverage
- Collision coverage
- Uninsured/Underinsured Motorist coverage
Some insurers may also consider extras like roadside assistance and rental reimbursement as part of a full coverage policy. Let’s look at what each of these common components covers
Liability Insurance
Liability insurance is required by all drivers in Arizona. It covers injuries or property damage you cause to others when you are at fault in an accident.
Minimum liability limits in AZ are:
- $25,000 bodily injury per person
- $50,000 bodily injury per accident
- $15,000 property damage
Liability coverage does NOT pay for your own vehicle repairs or medical bills. It only covers the other party’s expenses.
Comprehensive Coverage
Comprehensive insurance covers damage to your vehicle from non-collision incidents like:
- Theft
- Vandalism
- Hail or wind
- Fire
- Falling objects
- Flood
- Animal collisions
It basically protects against anything other than a crash.
Collision Coverage
Collision insurance pays to repair or replace your vehicle after an accident with another car, object or as a result of rollover. It covers damage from crashes even if you’re not at fault.
Uninsured/Underinsured Motorist
UM/UIM pays for your injuries or vehicle repairs if you’re hit by a driver who has no insurance or not enough coverage. Arizona requires uninsured motorist bodily injury coverage.
Is Full Coverage Required in Arizona?
No, full coverage car insurance is not required by state law in Arizona. You are only mandated to carry liability insurance at a minimum.
However, if you have an auto loan or lease, the lender will likely require you to purchase comprehensive and collision coverage as well. This gives them protection in case the vehicle is totaled or stolen.
Full coverage may also be required by rental car companies, certain employers, or other entities that have a financial interest in the vehicle. But as the owner, the choice to add comprehensive and collision is up to you.
How Much Does Full Coverage Insurance Cost?
Full coverage insurance costs more than a basic liability policy because you are getting more protections. However, the exact cost depends on factors like:
- Age and driving record
- Type of vehicle
- Location
- Claims history
- Chosen coverage limits and deductibles
On average, full coverage insurance in Arizona costs around $2,111 per year. Liability-only minimum coverage averages just $720 annually.
Here’s how premiums break down by coverage type for full coverage in AZ, on average:
- Liability: $815
- Collision: $382
- Comprehensive: $187
- Uninsured Motorist: $727
Of course, your actual rates could be higher or lower than these averages based on your specific risk profile. Getting quotes from multiple insurers is the best way to find the lowest rate tailored to you.
Should You Get Full Coverage or Minimum Coverage?
Should you pay extra for full coverage or just stick with liability insurance? Here are some guidelines on when each option makes sense:
Consider Minimum Coverage If:
- You have an older vehicle with low value
- You can afford repairs/replacement yourself
- Vehicle is a secondary or recreational one
Consider Full Coverage If:
- Your vehicle is new or has high value
- You have an auto loan or lease
- You need your vehicle daily and couldn’t be without it
- You can’t easily afford repairs/replacement
Ultimately, it depends on your finances, assets, and risk tolerance. Full coverage provides more protection but costs more upfront.
Tips for Finding the Best Full Coverage Rates
If you decide full coverage is right for you, here are some tips for getting the lowest rates in Arizona:
- Compare quotes from at least 3 different insurers
- Ask about all available discounts
- Consider raising deductibles to lower premiums
- Maintain good credit and driving record
- Drop collision/comprehensive on older vehicles worth less than $3,000
- Review policy annually to make sure you have optimal limits and deductibles
- Check for new rate deals every 3 years
The time spent shopping and comparing can save you hundreds per year on premiums. Make sure you get quotes specific to your situation.
Weighing the Pros and Cons of Full Coverage
Full coverage provides expansive protection for your vehicle and assets, but at a higher cost. Evaluate the trade-offs and make the best decision for your situation. With the right policy, you can drive Arizona roads worry-free!
Arizona Auto Insurance Requirements
Arizona law requires that any motorized vehicle driven on roadways in the state be covered by liability insurance. The law covers all motorized vehicles, including cars, pickup trucks, SUVs, motorcycles, mopeds, golf carts and vans.
Arizona law requires that any motorized vehicle driven on roadways in the state be covered by liability insurance. The law covers all motorized vehicles, including cars, pickup trucks, SUVs, motorcycles, mopeds, golf carts and vans.
Arizona requires all cars to have at least $25,000 in bodily injury coverage for the death or injury of one person and $50,000 for the death or injury of two or more people in the same accident. You must also have property damage liability coverage of at least $15,000 per accident.
It might take more than these minimums to pay for all the costs that come up after an accident, like medical bills, lost wages, property damage, and other things. If your insurance isn’t enough, the people who were hurt could sue you and the court could make you pay more.
Types Of Auto Insurance Coverages Suggested For Arizona
Purchasing an auto policy that goes beyond minimum coverage requirements is a good idea. Higher coverage limits protect you from paying a large amount of money if you cause an accident. A full policy also protects you if you get hurt by another driver whose insurance isn’t enough to pay for all of your medical bills and other costs related to the accident.
Here are some types of optional auto insurance recommended in Arizona:
This coverage pays for injuries or damages resulting from an accident that’s your fault. It pays for the medical bills or funeral costs of people you hurt or kill, as well as the repair or replacement of property you damage. However, it doesn’t cover your medical bills or damage to your vehicle.
Arizona requires a minimum amount of insurance to cover injuries and damage to property. You can buy more liability insurance to protect yourself in case of a bad accident. Most of the time, “full coverage” insurance means bodily injury insurance that will pay up to $100,000 per person and $300,000 for multiple people in the same accident, plus $50,000 for property damage.
This extra insurance covers your passengers’ medical bills if the driver who caused the accident doesn’t have insurance or doesn’t have enough insurance.
This extra coverage pays for your medical bills and the bills of other people riding in your car, even if you were at fault for the accident.
This extra insurance covers damage to your car that happens when you hit another car, when it flips over, or in other collision-related ways.
This extra coverage will pay for damage to your car that wasn’t caused by an accident, like theft, vandalism, or a hail storm. If you lease your car or are paying off a loan on it, the lender may require you to get collision and comprehensive insurance.
Understanding Auto Insurance: What’s ‘Full Coverage’ Car Insurance?
FAQ
What is considered full coverage insurance in AZ?
What exactly does full coverage insurance cover?
How much car insurance should I have in Arizona?
What is full coverage deductible?
What is full coverage car insurance in Arizona?
Full coverage car insurance is the best choice for most drivers in Arizona. Full coverage quotes include not only liability coverage, but also comprehensive and collision coverages. Comprehensive coverage pays for damage from incidents beyond your control, such as hail or theft.
How much does full coverage insurance cost in Arizona?
Costs for full coverage insurance with 100/300/100 limits and a $1,000 deductible in Arizona average $1,420 annually ($118 a month), compared to the national average of $1,296 annually ($108 a month).
What is a full-coverage car insurance policy in Arizona?
In Arizona, a full-coverage auto policy provides at least the state’s minimum for liability coverage (both bodily injury and property damage), as well as collision and comprehensive coverage. What are Arizona’s minimum car insurance requirements? Every state has its own auto insurance coverage requirements.
Which insurance company offers the cheapest full coverage in Arizona?
QBE offers the cheapest full coverage in Arizona, with an average rate of $1,167 per year according to NerdWallet’s August 2024 analysis. Full coverage in Arizona costs an average of $2,092 per year, or $174 per month. If you want the cheapest policy possible, get minimum coverage.