Making the Right Insurance Purchase
Starts With Understanding Coverage
Driving a car, a motorcycle or any other type of motorized vehicle is a risk. Auto insurance helps drivers manage that risk by covering at least a portion of the losses and medical expenses associated with accidents.
If you have ever purchased auto insurance without knowing what it was you actually purchased or what it would provide if you were actually involved in an accident — you're not alone. A large percentage of people buy the minimum amount of coverage required by Arizona law or make their purchases based solely on the recommendation of their insurance agent. Only later do many of these people realize that this was a mistake.
The key to making a smart auto insurance purchase is understanding your own needs and the types of insurance policies and coverage available, including:
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Liability and bodily injury coverage: If you purchase the minimum amount of coverage required by law, your insurer will pay up to $15,000 for each injury claim, but not more than $30,000 total for any one accident. In our experience, the 15/30 number is far too low. Consider purchasing at least $100,000 per injury claim and $300,000 per accident instead, or as much as you can comfortably afford.
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Medical payments coverage: This is an optional coverage also known by the names "Med-Pay" and "PIP" (personal injury protection). Again, we recommend purchasing as much of this coverage as you can comfortably afford, but do comparison shop because the rates, terms and amounts of coverage available vary widely between insurance companies.
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Uninsured and underinsured motorist coverage: This type of coverage protects you in the event that you are injured by a driver who has little or no insurance. Arizona law allows you to purchase an amount of
UM/UIM coverage equal to your liability and bodily injury coverage. Keep in mind, doubling your coverage this way will not double your insurance costs because additional UM/UIM coverage does not generally cost that much.
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Umbrella policy: You may also want to consider purchasing an insurance umbrella policy, which can protect your personal assets by extending coverage over and above the limits of stand-alone auto and
homeowners insurance policies.
Arizona Insurance Information Lawyers
Phoenix Area: 602-748-4391
Arizona Toll Free: 866-476-3054
Are you in good hands? Our clients are. Contact the attorneys at Plattner Verderame, P.C., in Phoenix, Arizona, for need-to-know information on purchasing auto insurance, knowledgeable legal advice and more.
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