Some Important Facts About Arizona Car Insurance
Before you can register a motor vehicle in Arizona, you must obtain liability coverage through an authorized Arizona car insurance company. The term 'motor vehicle' includes motorcycles, mopeds and even golf carts. The levels of liability are set by the Department of Transportation and cover you for Bodily Injury and for Property Damage, with minimum limits set per person and per accident. You can find out the limits that apply at the time you choose your coverage.
If you are not properly insured, you could have your vehicle registration or your driver licence (or both) suspended. To get these back, you will then have to pay fees and file proof of your liability coverage with the Motor Vehicle Division. If you are routinely stopped by a law enforcement officer, or if you're involved in an accident, you will need to show proof of your coverage.
It is important to note that insurers will advise the Motor Vehicle Division of any new policies, non-renewals and cancellations and MVD will then contact you to check any change in policy status. Problems with your liability coverage can be expensive and could mean you have to file for and carry a form SR-22 for three years.
You should understand that the Bodily Injury coverage applies to other persons injured in an accident that you have been involved in, not to injuries sustained by yourself. You need separate Medical Payments coverage for your own injuries. Likewise, Property Damage coverage does not pay for damage to your vehicle. For that you need to ensure you have Collision coverage.
Whilst Collision coverage will generally take care of collisions with other vehicles or damage sustained when your car overturns (whether or not you caused the accident), physical damage to your car is usually covered under a Comprehensive policy. This can apply to damage caused by vandalism, falling objects, such as tree branches, storm damage, or collisions with animals. Comprehensive coverage also insures you against theft of your car.
If you plan to drive into another state, with higher minimum limits, you will probably find that your coverage will be acceptable in the state you are visiting. The same applies to driving in Canada, where your policy should cover you, but in any case, check first. On the other hand, out-of-state insurance, i. E. From a company not authorized to do business in Arizona, is not acceptable within the state.
Underinsured and uninsured motorist coverage will pay for damage to your car in the event that the driver causing the damage is insufficiently insured, or has no liability coverage at all. Variations on these types of policies can cover personal injury for you and your passengers, so you should be clear on your requirements and what coverage you have.
There may be a time when you take your vehicle off the road for more than a brief period. Suppose you want to restore your car or you have a long term maintenance problem, then you can apply for de-insurance. If you simply do nothing, then your Arizona car insurance will eventually lapse and your registration will be suspended.