The Arizona July 1 Car Insurance Gain is Going to Cause Everyone Some Pain
Paying for car insurance (or any insurance for that matter) is a little like buying a funeral plot. It’s something you’re going to need someday, but you hope that someday isn’t anytime soon.
If you’re one of those people who buys the minimum car insurance allowed by law, the pain of buying insurance is about to get more intense. That’s because the state’s minimum required auto insurance limits are increasing on July 1.
As you might expect, more coverage costs more money.
Previously, Arizona drivers were required to carry auto insurance with minimum coverage limits of $15,000/$30,000/$10,000. As of July 1, 2020, Arizona drivers will need auto insurance with minimum coverage limits of $25,000/$50,000/$15,000.
Arizona’s Department of Insurance says that all new policies will have the higher limits starting July 1, and policies with lower limits will be automatically adjusted when they renew.1
There are some good reasons behind the state’s law change. In 2018, 127,056 crashes were reported in Arizona, resulting in economic losses of more than $19 billion. And although the number of crashes has been approximately steady from 2016 to 2018, there has been a significant increase since 2009, when only 107,149 crashes were reported.2
It’s clear that our roads have gotten more dangerous, possibly due to more distractions like smartphones. At the same time, healthcare costs are rising, and new cars are getting sophisticated tech features that can increase repair costs.
If the damages from a crash exceed your insurance limits, you could be on the hook for the remaining costs. Arizona’s new insurance limits give all drivers extra protection, and that’s something to celebrate.
That said, none of us are going to celebrate being stuck with a higher premium payment.
Here are some ideas to take control of your auto insurance costs:
- Use an agency (like ours) that shops rates with many carriers.
- Bundle your auto insurance with other coverage.
- Take advantage of all available discounts.
- Tell your agent how many miles you’re currently driving – this may have dropped because of COVID-19.
- If your insurance still isn’t affordable, call your agent to brainstorm options. You need coverage, and there may be coverage adjustments that make sense.
The new Arizona law will prompt many people to review their coverage, and that’s a good thing. Make it a habit by taking time to review your coverage every year.
1. Arizona Department of Insurance Consumer Alert: https://insurance.az.gov/consumer-alert-will-your-auto-insurance-coverage-limits-change-july-1-2020
2. 2018 Motor Vehicle Crash Facts for the State of Arizona, prepared by The Arizona Department of Transportation: https://azdot.gov/sites/default/files/news/2018-Crash-Facts.pdf
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