Let’s examine the types of car insurance you can purchase to make deciding what you need more straightforward.
When choosing, or looking at yours, you will find there are multiple coverage types in one policy. You will also have to make sure that you meet your state’s specific minimum legal requirements.
This page will cover the following insurance options:
Average annual premium for minimum coverage in Arizona
Average annual premium for full coverage in Arizona
When you’re at fault or are legally responsible for an accident, you need liability insurance, of which there are the following 2 types:
Minimum insurance requirements in Arizona
Bodily Injury Liability Per Person
Bodily Injury Per Accident
Property Damage Liability
Coverage for Underinsured and Uninsured Drivers
Provided you’ve been hit by someone without liability insurance (or enough of it), this coverage kicks in. It kicks in for any expense related to the car accident. Also, it applies to a designated driver or a member of your family driving your car.
This coverage could protect you if you’re struck by an uninsured or underinsured driver as a pedestrian or in a hit-and-run. This insurance type may extend to property damage, but that might require separate coverage.
Depending on where you live, this insurance type might be mandatory.
This insurance type kicks in for fixing the damage your vehicle experiences in a collision and might even extend to potholes. Generally, collision coverage comes into play for the most standard multi-driver accidents.
Here are two crucial considerations:
- Collision insurance doesn’t cover another driver’s car.
- It also doesn’t extend to mechanical issues or problems to do with your vehicle’s age.
You likely shouldn’t buy this kind of coverage if your car is used and has lots of miles on it.
It’s not always a vehicular collision that causes damage to your car. Catastrophes such as fires, earthquakes, and floods are notorious for tearing automobiles apart. Furthermore, you might hit a deer, fall victim to vandals, or get hit by a falling object.
Regardless of the freak occurrence, comprehensive coverage will kick in when it happens.
While it might seem a little far-fetched to pay for this type of coverage, those with a newer and higher-priced car might want it. If anything, it’ll give you peace of mind knowing you won’t leave empty-handed in the ultimate worst-case scenario.
Medical payments coverage (MPC)
Anybody injured in your vehicle during an accident (i.e., you or your passengers) will be covered by MPC.
Usually, it extends to the following expenses:
- Medical payments
- Lost wages
- Funeral costs
MPC might come into play if you’re struck by a car as a pedestrian.
Note that MPC has a maximum limit for what your insurer will pay for medical expenses. Keep in mind that this coverage might already exist in your health insurance, so double-check.
Personal injury protection (PIP)
It doesn’t matter who caused the accident; PIP kicks in to cover you and your family’s injuries. Actually, it applies to anyone riding in your car. Those living in a no-fault state must possess this insurance type. Conversely, it’s not a requirement in at-fault states but is optional.
Note that this coverage generally extends to rehab expenses, lost wages, and funeral expenses.
While we’ve covered the bare-bones basics, ask your insurer about other coverage options if you’re seeking something higher end.