As of July 1 of this year, the state of Arizona introduced new auto insurance minimums. These rules require drivers to carry higher liability coverage than in the past. Learn more about the increases and how they affect you in the guide below.

What Are the Increases?

Before July 1, 2020, drivers were expected to carry $15,000 worth of bodily injury coverage per person. This is money that would go towards the other party's medical costs should you be determined to be at fault for the incident. Since there might be more than one person injured, this policy was also supposed to cover up to $30,000 of medical costs per accident. Furthermore, drivers were supposed to have $10,000 worth of property damage coverage to help pay for the other party to get their car or other belongings repaired. 

Minimums have since been raised. Residents now need $25,000 of bodily injury coverage per person for a total of $50,000 per accident. Property damage liability coverage requirements have also been lifted to $15,000.  

While, at first glance, this might seem like unnecessary pressure on your wallet, this change in the laws is meant to protect drivers. Inflation has made the cost of medical treatments and car repairs increasingly expensive. Under the old limits, many policies did not sufficiently cover the fallout from an accident. The liable party then had to pay for the difference out-of-pocket, which could be a harsh financial blow.

Why You Should Update Your Policy

Since these rules came into effect, anybody purchasing a new auto policy must match these limits. Additionally, if you already had insurance and it renewed since July, you might have noticed your premiums and coverage went up automatically. However, if you have seen no difference, contact your agent to review your plan. While individuals are legally allowed to retain their previous minimums until their renewal, doing so could potentially leave you underinsured should you get into an accident. 

If you are concerned about the bump to your premium, take the opportunity to also discuss potential discounts you might be eligible for. For example, many providers offer reductions to those with a clean driving history or who have gotten married since their policies began. Students might earn lower premiums for consistent good grades. You might also be able to bundle your auto insurance with your home or renters coverage for added savings.

If rate increases have you contemplating switching insurance providers, contact Insurance Savers® in Phoenix, AZ. Since 1999, their team of licensed, professional agents have worked with individuals to get them high-quality policies at prices they can afford. Contact them today at (602) 265-9311 to request a quote. Visit their website and learn how they can save you money on your monthly premiums.