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Seven Coverages you Can Add to Your Phoenix Auto Insurance Policy

Arizona is one of the southern states of the United States of America. Being a desert state, it is characterized by the vast stretches of sand and hot weather. It boasts of a multicultural population.

The state of Arizona enforces auto insurance by law. In other words, every vehicle driven or parked in the streets of Arizona must possess auto insurance. Now why do we need to insure our cars? In case there is an accident, the insurance pays for the damages caused and hence is an emblem of security. Before registering your vehicle, you need to have sufficient proofs of financial responsibility as per the needs of the state. It can be either a copy of a car insurance policy or a bond by an insurance company recognized by the state. It can also be the certificate or receipt of the deposit a sum of $40,000 in cash with the Department of Motor Vehicle or DMV of the state.

Phoenix is the capital of Arizona and has to function as per the laws of the state. The minimum liability in Arizona is divided as follows-

Bodily Injury- Every car owner and driver must have Bodily Injury coverage worth $15,000 for a single person and $30,000 for an entire accident. It pays for the injuries and damages you have caused. It however does not pay for your medical expenses. For that, you need to have Medical coverage.

Property Damage- Each and every car owner and driver need to have at least coverage worth $10,000. In case there is an accident and you are at fault, it pays for the damages you have done to the victim’s car. However, you need to have Collision coverage to protect your own car.

When it comes to big cities like Phoenix, the minimum liability is hardly sufficient. Listed below are some of the useful but optional policies you can add to your auto insurance in Phoenix.

Medical Payment Coverage- Medical Payment Coverage is usually included in the minimum liability coverage in some states. Arizona however makes it optional. Undoubtedly, this is one of the most important coverage you might want to opt for. The rates of this scheme are quite reasonable. Usually most applicants like to go for a $5,000 plan. It pays for the injuries you have incurred in an accident whether you are at fault or not. In cases of accidents, your health insurance stands a high chance of living gaps especially in the cases of co-pays, out of network services, deductibles, etc. However, your Medical Payment policy does not.

Collision Coverage- Collision coverage is quite a beneficial plan to add to your auto insurance in Phoenix. Here, the insurer is contract bound to take care of your vehicle. Usually, when your car is damaged by another party in an accident, it is the culprit’s Property Damage coverage to compensate for the damages your vehicle incurs as a result of the crash. However, your Collision coverage can be more helpful in such cases. Firstly, it assures to take care and financially protect your car irrespective of who is at fault in the accident. You can also get the repairs started on your car faster than the liability carrier since there is no scope for a detailed investigation. Secondly, the guilty party’s insurance will take the required time to investigate the accident, its occurrence, circumstances and its consequences, and will start by offering you a reduced percentage. Your insurance company will claim the amount from the other party’s agency. It is a no-loss situation for you and your insurer. Your company cannot raise the rates in this case unless you are more than 50% at fault.

Comprehensive Coverage- Comprehensive coverage is either offered along with Collision Coverage, or sold separately, according to the needs and the preferences of the applicant. This policy protects your car from theft, fire and non-traffic accidents. In places Phoenix where crime rates are high, this coverage turns out to be a real blessing.

The Uninsured Motorist Coverage- the Uninsured Motorist coverage comes to play when an accident leaves you injured and the guilty party has no insurance. You can then claim coverage from this policy. Statistics show that out of all the accidents recorded, as many 30% to 40% of them are caused by uninsured drivers. This coverage is optional but is highly recommended by the experts. You can make an Uninsured Motorist claim, till three years after the actual occurrence of the accident. Remember, that this claim only covers the expenses for the treatment of the injury you may have sustained as the result of the accident. In case of a liability claim, you are duty bound to give a statement while making a claim. Also, you need to cooperate with them, while they investigate the incident. In case of an UM claim, the company as per the contract gets direct access to your medical reports. Lastly, you must not forget, that making an UM claim makes your rates go up. Such things may only happen when you are more than 50% at fault in an accident or you change your insurance company before the expiration of the contract. The Arizonan laws protect the insured form unreasonable hike in the premium rates.

The Underinsured Motorist Coverage- the Underinsured Motorist Coverage or the UIM is another useful and highly recommended. It is usually offered by some insurance agencies and need not be purchased. If you are injured in an accident caused by a driver who does not have sufficient coverage, then through this policy you can recover the unpaid amount. This claim is pursued after the liability plan has been settled.

If you are planning to make a claim on your Phoenix auto insurance, you must remember that in Arizona, most insurance companies try to close filed claim as low and as quickly as possible. The Insurance Commission of Arizona makes the companies legally bound to conduct a thorough investigation and fairly evaluate each claim. However, it does not clearly mention the violations. The party at fault has limited obligation towards you and may or may not choose to act kindly or quickly. However, you can do your part by accumulating enough evidence like the witnesses of the accident, medical bills, repair bills, etc. These will at least make the process easier.

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