Arizona Car Insurance Basics
November 22, 2008
This is a very quick overview, hopefully in plain English, of coverage options you can choose for your Arizona auto insurance policy. You may want to read this as you look at your policy to make sure you have the coverage you want.
Bodily Injury Liability - This protects you if you’re at-fault for an accident, or someone you let drive your car is at-fault for an accident, and physically injure someone else. Simply stated, you hit someone and they’re hurt. This coverage will pay for the other person’s injuries, up to your policy limits. It will also pay for your legal defense if they sue you. This coverage is required by Arizona law and does not cover the driver of your car.
Property Damage Liability - This is similar to Bodily Injury Liability above but instead of paying if you injure someone, it pays when you damage things from your at-fault accident. This pays for the damage you cause to another person’s car, house, motorcycle, wall, light pole, etc. This is required by Arizona law and does not cover damage to your vehicle.
Uninsured Motorist - This pays you and/or passengers when someone hits you and is at-fault for the accident and they have NO insurance or it is a hit and run accident. This is for your Bodily Injury claims only and does not cover your car.
Underinsured Motorist - Similar to Uninsured Motorist above, this pays you and/or passengers when someone hits you and is at-fault for the accident and they don’t have enough Bodily Injury Liability coverage to pay for your damages. This is for Bodily Injury claims only and does not cover your car.
Medical payments - This pays for reasonable medical and funeral expenses up to the policy limit regardless of fault. It covers you and any persons in, entering, or exiting your vehicle. Basically, someone gets hurt in your car, regardless of fault, the policy will pay for their medical bills up to the policy limit.
Collision Coverage - This pays for damages to your car, truck, motorcycle, etc. from collisions. If you run into a car, a tree, a house, etc. then this is usually the coverage triggered to repair your car. You have to pay the deductible and the insurance will cover the rest up to the actual cash value of the car. You can increase your deductible and lower your premium. Or, you can lower your deductible and increase your premium.
Comprehensive (aka Other than Collision) Coverage - This pays for damages that are not caused by a collision: hail, wind, fire, theft, falling objects, vandalism, collision with an animal, acts of God, and others perils. You pay the deductible and the insurance will pay the rest up to the actual cash value of the car. You can increase your deductible and lower your premium. Or, you can lower your deductible and increase your premium.
Full Glass Coverage Option - This is an option to add to your Comprehensive coverage that eliminates you paying the deductible for a "glass only" claim.
Rental Reimbursement - This pays for a rental car when your car is damaged and covered by a collision or comprehensive claim. The insurance company will pay for a rental car while your vehicle is being repaired up to the policy limits.
Towing/ Emergency Road Service - In the event your vehicle becomes disabled, the insurance company will pay to have your vehicle towed up to policy limits.
As I said originally, this is a very breif description of policy coverage options. I simply want to provide an easy to read, plain English answer to common questions. If any of this doesn’t make sense or you have more questions, leave a comment or give our office a call.
Now for the legal disclaimer - All coverage descriptions here are not intended to, and do not, describe, summarize or represent the actual language, terms or conditions of any auto insurance policy you may purchase. The auto insurance policy you purchase will define and describe the coverage, terms and conditions of your policy. Each insurance company is different and each state’s coverage options are different. Always Read Your Policy and discuss with your agent .
My Favorite Veteran
November 11, 2008
Today is Veteran’s Day. Despite what you see advertised, Veterans Day is more than a reason for every retail store to hold a sale. It’s the day we’re to remember and celebrate the people that serve our country.
Most people won’t notice today’s meaning and will simply become irritated because they can’t get their mail. It’s an important day to me because it always reminds me of my grandfather. He retired from the Air Force with over 30 years of service. Listening to his stories of what he did before he shipped off to serve during World War II, what happened during the war, and his travel and life after the war are some of my favorite memories.
He passed away a few months after my son was born. He was the greatest guy I ever knew.