Understanding Insurance Coverage

Most people do not know what insurance coverage they have until they need it. And, agents don't sell it in a way that is understandable so you can compare apples and apples when shopping for coverage. The following will hopefully provide a general overview:

Arizona is a mandatory automobile insurance law. It sets forth the minimum amount of insurance someone needs to buy to comply with the law before you can register your vehicle. The minimum insurance limit is 15-30-10. This means $15,000 per person to a maximum amount of $30,000 per accident for a liability claim, and $10,000 per accident for a property damage claim. Many insurance agents tell buyers that this is "full" coverage, because it meets Arizona's state minimum. Agents do this to try and show a more competitive premium pricing between companies. But, it is not "full" coverage.

Each person's circumstances is different so the amount of coverage needed should be evaluated for your individual circumstances. However, the types of coverage needed are similar. First, buy liability, uninsured, underinsured motorist coverage in the same amounts. Don't insure the person you hit in the accident better then yourself. For example, if you buy liability coverage of 15-30, the Arizona minimum, then buy uninsured and underinsured motorist coverage in the same amount. If you can afford more, and have assets to protect, buy more then the Arizona minimum amount. If you do not buy uninsured motorist and underinsured motorist coverage you have not insured yourself only the other person involved in the accident.

If you can afford additional coverage add comprehensive insurance (in case the car is stolen or there is a break in), medical payments coverage (but anything over $5,000 may be reimbursable to your insurance company when you make a claim), and glass, towing and rental. Adding all of this is getting you closer to full coverage. When you look at quotes from different companies, make sure you are comparing similar coverages.

At Pfarr & Rethore we welcome the opportunity to review your insurance coverage to see if you have purchased full coverage. Please contact us at 602.424.5547 or fill out our online contact form.