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  • AZ Insurance Team

State Minimum Auto Coverage: Worth It?

az state minimum auto insurance car crash

As consumers, we’re always looking for the best deals, but often times as you know; the cheapest product is rarely the best product. Every state has a set liability limit on auto insurance that every driver must carry at a minimum. People carrying minimum state coverage are definitely the ones you want to avoid getting into an accident with if it were possible to do.

State Minimum Insurance in Arizona:

  • Bodily injury liability coverage: $15,000 per person/$30,000 per accident

  • Property damage liability coverage: minimum $10,000

  • Uninsured motorist bodily injury coverage: minimum $15,000 per person/$30,000 per accident

  • Underinsured motorist bodily injury coverage: minimum $15,000 per person/30,000 per accident

Here’s an Accident Scenario with you Carrying State Minimum Insurance:

You hit a new F-150 head on and do $12,000 worth of damage to their truck and injure 3 people inside causing $34,000 dollars in medical bills. Your own vehicle is totaled and medical bill for a neck injury of your own is $7,000.

What will state minimum cover in this scenario?

  • $10,000 to fix the F-150 truck

  • $30,000 to cover medical bills for the 3 injured people

This leaves you owing a balance of $6,000 to the not at fault party. They can and will likely sue you for this money.

You’re left owing thousands of dollars to someone else, you still have $7,000 in your own medical bills racked up and you’re without a car now (if you don’t have collision and med pay coverage, both of which are not required by law). Now, you have to take a bus, Uber, or bicycle to work to save up as much money as you can to get a new car, pay of your bills and a possible lawsuit. Things are not looking too good for you, all because you thought you could save a couple bucks by opting for state minimum coverage.

Other downsides to state minimum insurance without an accident:

  • Places that offer it usually require a steep down payment and other fees

  • Often times it’s renewed on a month to month basis, meaning you can’t lock in your rate, which is especially bad if you get into an accident your rate will go right up

What’s an affordable alternative for state minimum insurance?

There are numerous insurance companies that will provide you with affordable rates and great coverages. Shopping with a broker is one of the best ways to quickly price shop rates and benefits without doing any real work yourself. Call your insurance broker today to get better coverage than state minimum at a price you can afford.

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