A State’s Car Insurance Regulations

As with every state, regarding a vehicle, AZ car insurance is mandatory. There is a choice, you can have a regular insurance policy, a bond, certificate of deposit or cash in the amount of $40,000. All must be registered with the Department of Motor Vehicles.

Arizona requirements are 15/30/10 regarding liability. That is $15,000 for one person’s bodily injury, $30,000 for two or more and $10,000 property damage. With today’s high medical and replacement or repair of a vehicle costs, it is obvious that this is not enough to cover a serious accident. Therefore, it is your best interest to have more coverage than required.

Law requires this insurance coverage to be obtained from a company that is authorized to do business in the state. In addition, this liability insurance includes golf carts, motorcycles and mopeds. Prices on the premiums depend on a statewide pool of automobile accidents and insurance company losses that they had to pay to settle claims.

It is possible to lower the cost of your insurance through a variety of discounts available. They include a good driving discount and combining auto insurance with homeowner insurance. Others are having more than one automobile, good student, nonsmokers and passive restraint (air bags or seat belts). Having higher deductibles also lowers the premium.

As a rule, traveling out of state your insurance coverage is valid. However, you should be aware that if you travel to Mexico you must have separate liability coverage from a Mexican insurer. If going within 25-50 miles of the border the Arizona insurance may have some limited coverage but does not meet Mexico requirements. If you are in an accident, while in Mexico, you could wind up with a heavy fine and possibly spending some time in their jail.

Each insurance company is required to report to the state when someone lets their insurance policy lapse, this suspends the registration and license. Of course, anyone caught driving without the insurance incurs fines and, if this happens a number of times can lose the car. If your vehicle is inoperable or is in storage for a time it is possible to get the insurance. This form is filed with the state informing them that the vehicle will not be driven on the highway so does not need insurance. This is noted in your license registration record.

In driving on any highway, in any country, it is the responsibility of the car’s owner to have insurance for liability in case there is an accident and someone is injured. AZ car insurance is no different. Having insurance is a protection, both for yourself and for anyone else involved in an accident.

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