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New Liability Coverage Limits for Arizona Car Insurance in 2020

A car driving down a lonely road in the Arizona desert to illustrate the new Arizona car insurance requirements.

Do you drive a car in Arizona? If so, your liability car insurance coverage may change due to the recent increase in minimum limits approved by the state, which will be valid starting July 1, 2020. Here’s everything you need to know about the new state law so you can avoid penalties due to a lack of coverage.

How Will Minimum Liability Limits in Arizona Change for 2020?

Minimum liability limits for car insurance haven’t changed in Arizona since 1972, so this 2020 boost is necessary to meet rising medical and car repair costs. Take a closer look at the amounts that will be changing:

  • Bodily injury or death will increase from $15,000 to $25,000 per person.
  • Bodily injury or death per accident will go from $30,000 to $50,000.
  • Property damage minimum coverage will rise from $10,000 to $15,000.

What Do These Changes Mean to You?

Bodily injury and property damage insurance cover you if you cause a car accident. The amount of protection depends on how much coverage you purchase and the type of policy. It’s always best to go beyond the minimum limits required by your state to make sure you’ll pay little or no money out of pocket.

For example, if you’re responsible for an accident that results in three people being injured for $25,000 each (a total of $75,000) and $20,000 in property damage when you only have the minimum coverage required ($50,000 for bodily injury and $15,000 for property), you’ll have to cover the remaining $25,000 for physical injuries and $5,000 for property damage. All of this comes to a total of $30,000 that you will have to pay out of pocket.

How Will This Increase in Arizona Car Insurance Minimums Affect You?

You may see the effects of these changes on your checkbook if you’re only covered for the minimum amounts required by Arizona law. If your limits are higher, you will probably not notice the increase. Furthermore, even if you only have minimum coverage, the change would only raise your monthly payments from $3 to $8.

It’s crucial that you take into account the cost of driving uninsured in Arizona, which is considerably higher than the coming changes to the minimum liability limits. Penalties start at $500 and can go up thousands of dollars. Also, you run the risk of getting your license and registration suspended for up to 1 year and racking up considerable debt to pay for damages if you have an accident while unprotected.

How Can I Know If I Have the Correct Liability Coverage for Arizona?

When it comes to car insurance, it’s always better to be safe than sorry, so don’t let time pass you by and make the necessary adjustments to your car insurance as soon as possible. Remember, minimum liability limits in Arizona will increase starting July 1, 2020, so go over your policy very carefully and don’t risk driving without the right coverage. It is well worth to invest a few dollars more a month to have the peace of mind of knowing that you have the protection you need on the road.

Don’t know if you’ll be covered for the new Arizona auto insurance limits? At Freeway, we can help you check your policy and make sure you have the right AZ coverage for 2020 at an affordable rate. Don’t wait any longer to get the coverage you need; our agents are ready to help at no cost to you. You can request a free Arizona car insurance quote online or by calling us at 800-777-56620.

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