Arizona drivers must have proof of financial responsibility when operating a motor vehicle on Arizona highways. Most of us demonstrate our financial responsibility by purchasing an auto insurance policy. Young drivers tend to have less driving experience than older drivers, leading insurers to charge younger drivers higher rates. Misplaced or missing signs and the amount of rain and snow in certain areas can affect insurance premiums.
You can (and in some situations should) have more coverage to protect you if a serious crash causes injuries or significant damage to the vehicle from a car accident. Accidents caused by fault remain on your record for three to five years, so you can expect your insurance rates to be affected for at least three years. Insurers have found that customers with higher credit scores file fewer claims, which costs the insurance company in general less. Finding the minimum insurance that's right for you can save you thousands of dollars in fees, premiums and liability costs.
You can contact the customer service department of your insurance agent or company to find out about any possible changes in your premium. For more information on Arizona car insurance regulations, directly from the state, see the Arizona Department of Transportation's frequently asked questions about mandatory auto insurance and its vehicle insurance information portal. Remember that once the policy limits are exhausted, you are personally in financial distress, so higher insurance limits can help protect your personal assets in the event of a serious accident. This is because insurance companies believe that older people are more experienced drivers and are more financially stable.
For example, personal injury protection (PIP) or MedPay coverage can be used to pay medical bills for a car accident (this coverage is optional in Arizona), and collision coverage (also optional in Arizona) can pay for repairs (or replacement) of your damaged vehicle after a car accident. Arizona requires that every motor vehicle that drives on the state's roads be covered by liability insurance through a company authorized to do business in the state. If you simply have questions about Arizona's auto insurance rules, we hope we've answered them here. Uninsured motorist coverage (UM) and underinsured motorist coverage (UIM) pay your medical bills and property damage expenses if you are involved in an accident with a motorist who does not have any (uninsured) automotive liability insurance or with a motorist whose automotive liability coverage is not sufficient to pay the full amount of the expenses (underinsurance).
Of course, these penalties are likely to pale in comparison to the financial impact you could suffer if you were in a car accident and didn't have car insurance. Some of them include Noble, Root, Geico, Sfeco, Clearcover, CSAA, Auto Owners, ACCC Insurance, Travelers and QBE.