Liability Vs. Full Coverage in Arizona

The world of auto insurance can be very confusing sometimes. Most people recognize a need for it, but not all can understand what they should buy regarding insurance.

Knowing all these subtleties can prevent unwarranted costs and put you on the right track to making better policy choices. 

This guide sheds light on the two most common types of insurance coverage an Arizona driver needs to know: liability and full coverage.

Knowing Your Liability Coverage in Arizona

Arizona runs a fault-based system when it comes to car accidents. As in other fault-based states, drivers are mandated to carry minimum liability coverage. This means you will be held financially responsible for damages incurred by third-party individuals if you cause an accident.

Arizona law requires all drivers to maintain basic liability insurance, with minimum coverage limits of $25,000 for bodily injury per person injured in the accident, $50,000 for total injuries per accident (where there is more than one victim), and $15,000 for property damage.

Liability insurance will help pay for damages if you hit someone’s car or hurt another person. Still, it will not cover repairs to your vehicle or your medical bills after an accident. 

Diving into Full Coverage Insurance

Full coverage auto insurance is generally misunderstood. It is not a magic force field that protects against all possible expenses, but it does offer complete protection compared to liability only. It usually has both collision and comprehensive insurance, which covers damages to your vehicle in many scenarios, such as hitting another car or a tree falling on it.

The costs differ depending on your car’s value, driving history, and the deductible you want to carry. Although this coverage is not required by Arizona law, obtaining it will make you feel secure and protected financially. 

Choosing the Correct Insurance Policy for Your Car

Choosing the right insurance coverage is a matter of assessing your car’s value and your pocket. Liability coverage might be enough on an older car that does not have much market value, especially if you could replace it with little financial impact.

Full coverage becomes important when the stakes are high—for example if you have invested in a pricier or financed vehicle, potential out-of-pocket repair costs or loan requirements could put a serious dent in your wallet after an accident, full coverage provides that essential financial security buffer needed to protect yourself from hefty expenses.

More Insurance Coverage Choices Explained

If you have legally met the requirements of Arizona with just basic liability insurance and do not feel that comprehensive insurance is an option, then collision coverage is one viable option. This will cover repairs or replacement of your vehicle should you collide with another vehicle or object, regardless of fault.

One more coverage you might consider is Personal Injury Protection, also called PIP. It pays for medical expenses for you and your passengers without regard to fault—a very valuable benefit at the moment of need. Also worthy of being on your radar is uninsured and underinsured motorist coverage, which protects against situations where the other party is liable but has either too little or no insurance at all.

“In consideration of the increased costs of car accidents and health care, having the right protection can help safeguard not only your pocket but also the continuation of care. Its peace of mind is beyond description,” says Arizona personal injury lawyer Jeffrey L. Phillips of Phillips Law Group Injury Lawyers.

Navigating After an Accident

If you are injured in an accident caused by the negligence of another, then dealing with the aftermath—especially the insurance companies—can be downright complicated.

This is where an experienced attorney in personal injury law becomes indispensable. They guide you through the tedious process of making claims and act as a strong advocate to ensure you get the compensation that rightly belongs to you.