Guide To Purchasing Arizona Auto InsuranceWhen it comes to financial responsibility in auto accidents, the tort system is followed in the state of Arizona. This means that the party who is at fault and his auto insurance company should have financial responsibility for injuries and property damage caused. Arizona auto insurance policies are required to have minimum bodily injury liability coverage of $15,000 for each injured person to a total of $30,000 per accident. Minimum property damage liability is also pegged at $10,000. In general, consumers purchase auto insurance policies since this can be used as proof of financial responsibility when registering a vehicle in Arizona. Proof of financial responsibility may also come in a form of certificate of insurance, bond or a certificate of deposit of $40,000. Arizona auto insurance premium averaged at $1,055 in 2003 as compared to the national average which is estimated at $914. Many consumers wrongfully assume that this rate is mandatory and that it is uniform for all auto insurers. This is not true. In fact, if consumers would just take time to conduct extensive research, they would be able to find out that different insurers have different rates for identical policies for identical vehicles. Also, to get more savings from auto insurance premiums, avail of the discounts provided by most insurers. Some common discounts are accident free drivers discount, multiple auto discount, good student discount, nonsmokers discount, passive restraint discount which is for vehicles that have airbags and automatic seat belts and package discounts which can be availed by purchasing home insurance from the same insurance company. Consumers can also increase their deductibles to avail of lower auto insurance rates.
For consumers to get additional pointers about Arizona auto insurance policies, they are encouraged to browse through the website of the Arizona Department of Insurance for helpful information about auto insurance. This agency also published a guide for consumers when considering purchases of auto insurance. According to this guide, the credit history of a person is often used by auto insurers to determine the coverage and price of an Arizona auto insurance policy. Aside from the credit history, insurers also rely on reports provided by certain organizations including ChoicePoint which utilizes the Comprehensive Loss Underwriting Exchange (CLUE) to obtain loss history information on a consumer. Moreover, consumers should know that there is a sixty-day period during which a consumer may cancel an Arizona auto insurance policy for any reason except location of residence, age, race, color, religion, gender or national origin. Moreover, this guide also outlines the reasons or grounds for which an Arizona auto insurance policy may be canceled after the sixty-day period. These are as follows: non-payment of premium, fraudulent misrepresentation used to obtain the policy, inability of the insured to drive or operate a vehicle due to revoked or suspended driving license, physical disability, or conviction to a crime and lastly, if the insurer is placed in rehabilitation or receivership by an insurance supervisory official of the state. In addition, Arizona auto insurance companies are not allowed to increase premium when an insured figured into an accident which is not his fault. |