ARIZONA MINIMUM LIABILITY LIMIT CHANGE

Will your auto insurance coverage limits change on July 1, 2020?

The law that establishes the minimum amount of liability insurance coverage that drivers are required to carry has changed.  Starting July 1, 2020, the minimum amount of liability coverage when purchasing a new policy or renewing an auto insurance policy in AZ has increased.  Prior to July 1, 2020 the minimum limits in Arizona were:

• $15,000 for one person sustaining bodily injury or death in an accident,
• $30,000 for two or more persons sustaining bodily injury or death in an accident, and
• $10,000 for damage to others' property.

This is commonly referred to as 15/30/10.

Effective July 1, 2020 the minimum limits in Arizona for auto insurance policies have increased to:

• $25,000 for one person sustaining bodily injury or death in an accident,
• $50,000 for two or more persons sustaining bodily injury or death in an accident, and
• $15,000 for damage to others’ property,

All new auto insurance policies issued on or after July 1, 2020 must be issued at limits of no less than 25/50/15.  All auto insurance policies renewing on or after July 1, 2020 that have the 15/30/10 limits will automatically be increased to the higher limits of 25/50/15 upon renewal.

If your current policy limits are below the new limits, your renewal premiums will likely increase to correspond to the increase in coverage.  If your policy renews in May or June 2020, you may retain the old 15/30/10 minimum limits until your next renewal, unless you choose to change your coverages sooner.

If you have uninsured and/or underinsured coverages on your policy at the minimum 15/30 limits, your insurer will automatically increase these coverages to match the new minimum 25/50 limits and adjust your premiums accordingly.  You can choose to change your coverages at any time, but this is the new minimum amount of uninsured and underinsured coverage you can select on policies purchased or renewed on or after July 1, 2020.

Policyholders may wish to contact their agents or insurance company customer service to inquire about any potential change to their premiums.

For more information about financial responsibility requirements, visit: https://azdot.gov/motor-vehicles/faq-motor-vehicle-division/vehicle-services-faq/mandatory-insurance-faq

HOW MUCH LIABILITY COVERAGE IS RIGHT FOR YOU?

Do you know how to select the proper liability limits to protect your assets?  Most likely, the answer is "No" but we here at Budget Insurance & Tucson Insurance Solutions make it simple and easy to calculate the level of protection that's right for you.

All too many times we as consumers get caught up in the game of saving a few dollars on our insurance.  Yes, we agree that paying too much is never a good thing but let's stop for a moment and think about the REAL SAVINGS insurance has to offer.

Ask yourself this 1 simple question:  Would you rather save $342 OR $342,000?

We can save you $342,000 and MORE.  Here's how...

Your auto, home and other insurance policies include liability coverage.  This coverage is in place to protect your assets but not having the proper coverage can be costly.

The liability limits you select protects your assets but it doesn't mean you're off the hook.  If a claim or lawsuit exceeds the coverage amount you carry, YOU are responsible for anything above that amount.  This means that your assets become the next "coverage" you have in place.  Not only the equity in your home, savings and investments are at risk but so are your future wages.  Did you know that the national average wage garnishment is 33%?  Yes, that means that a judgement against you can not only dip into your current assets but also your future earnings through wage garnishment.

We realize the idea of this all is a little frightening but set your worry aside.  We can help you select the right coverage to give you the protection and peace of mind you need.

Figuring out the level of coverage you need is easy.  Let's get started: