While every state requires auto insurance, they don’t all require the same level of financial responsibility. In the state of Arizona, auto liability insurance requirements include autos, motorcycles, mopeds, and golf carts. The minimum levels of auto insurance you must carry include:
- $15,000 bodily injury liability for one person
- $30,000 bodily injury liability for two or more persons
- $10,000 property damage liability
Bodily liability and property damage pay for any damage that you may cause to another person or property, such as street signs and fences.
While there are several other states with similar levels of coverage requirements, such as California, Delaware, and Louisiana, over 75% of states require higher auto insurance levels. Interestingly enough, Louisiana and Delaware also are among the top ten most expensive states for insurance, according to the Insurance Information Institute (III).
How Much Car Insurance Do You Need?
According to the Insurance Information Institute, a car accident can cost far more than the limits mandated by most states. Therefore, they recommend you carry at least $100,000 of bodily injury protection per person and $300,000 per accident (known as 100/300).
Even though there is no legal requirement to have additional insurance coverage, many drivers carry four other types of auto insurance coverage:
- Personal injury liability pays for your medical expenses and lost wages
- Collision covers you for damage you cause to your own car
- Comprehensive protects you against damage not caused by a collision, such as vandalism or acts of nature
- Uninsured or under-insured motorist coverage protects you when the person who hits you has no or low insurance coverage or you are the victim of a hit-and-run
Trying to determine the right amount of auto insurance for your vehicle can be difficult. It’s wise to speak with your insurance agent, who can help you determine if a higher liability limit would better suit your individual needs.
Are You Underinsured?
According to the National Highway Traffic Administration’s (NHTA) 2010 issue of “Traffic Safety Facts,” approximately 210 million licensed drivers in the United States had an estimated 5,419,000 crashes, based on police reports. These five million plus crashes killed 32,885 people and injured 2,239,000.
The state of Arizona accounted for over 100,000 of these accidents, which include 825 deaths and nearly 50,000 injuries, according to 2011 statistics from the Arizona Department of Transportation (AZDT). Additional interesting statistics include:
- Peak month for crashes: December
- Peak day for crashes: Friday
- Peak hour for all crashes: 5 p.m. to 6 p.m.
- One person was killed every 10.63 hours.
- Most common manner of collision: Rear end
So, what did these car accidents cost the people of Arizona? The AZDT notes that the statewide economic loss due to motor vehicle crashes was:
- Fatalities: $1,186,515,000
- Incapacitating injuries: $322,568,880
- Non-incapacitating injuries: $399,124,062
- Possible injuries: $352,568,916
- Property damage only: $632,182,842
Maricopa County leads the state with the highest cost of car crashes at a total of $1,626,556,464 for all fatalities, injuries, and property damage combined. Second place goes to Pima County at $332,283,258.
Whether or not the mandatory requirements for auto insurance in Scottsdale, AZ (or any city or state) are sufficient is debatable. However, you can ensure that you have sufficient coverage on your family and car. For more information about the right coverage for you, visit us online.