In a world of name-your-price and click-to-buy insurance policies, it’s tempting to take a hands-off approach to your car insurance. And while we try to make it as simple as possible for you, it is also important that you’re informed about what it is you’re buying.
One term that requires some clarification is “full coverage,” because within the insurance world it doesn’t actually have a specific meaning. In Arizona, like most states, the only coverage you’re required to carry is liability insurance, which would cover any damage you inflict on somebody else or their property while driving.
The Arizona liability insurance requirement is law, and it applies to any vehicle registered in the State of Arizona.
If you’re financing your car, the company holding the loan will probably require that you purchase Physical Damage coverage for the car, in the form of Comprehensive and Collision.
Collision would cover damage to your car from colliding with another car or object, while Comprehensive, sometimes called “Other Than Collision” coverage for obvious reasons, would cover everything else– things like theft, colliding with an animal, fire and vandalism. Usually when we hear people say they need full coverage, this is what they mean.
However in addition to those very basic auto insurance coverages, there are lots of optional perks that you can add to your policy– things like Rental Car Reimbursement, Towing and Labor Coverage (sometimes called Roadside Assistance), full glass (which waives your Comprehensive deductible in the event of a glass claim), Medical Payments and Un/Under-Insured Motorists Coverage.
In addition to the multiple types of coverage available, they all have varying coverage limits to choose from. Take some time before you get an insurance quote to research what each of these coverages mean, and to decide what limits you’re comfortable carrying. And as always, you’re welcome to give your local independent agent a call if you’re a bit confused.
Thanks for reading, peace out.