New Arizona Law Will Increase Minimum Insurance Coverage Requirement
New arizona law will increase minimum insurance coverage requirements for auto insurance.
MESA, Ariz. - June 14, 2019 - PRLog -- Arizona Gov. Doug Ducey has signed legislation to increase the minimum coverage for auto insurance policies, after vetoing a similar bill last year over concerns it would boost premiums. The new law requires car and truck owners to have at least $25,000 of liability insurance for a single person's injury and $50,000 per accident (known as 25/50), up from $15,000 and $30,000 respectively. The bill also requires $15,000 in coverage for property damage, an increase from $10,000. The current minimums were put in place in 1972, with the new changes taking effect on July 1, 2020.
How much auto coverage do you need? According to Mike Stapley with American Family Insurance, the newly increased limits may not necessarily be adequate. "If you're at-fault in an accident, you may be financially responsible to repair or replace property that was damaged. Replacing a vehicle can cost far more than the minimum property damage limit of $15,000." The Insurance Information Institute (III) recommends that you carry at least $100,000 of bodily injury protection per person, $300,000 per occurrence, and $50,000 for property damage.
How will this affect you? Consumers who buy minimum limits, will have their coverage automatically increased next year, and could see their insurance costs rise. Drivers who already purchase higher insurance limits, will not require a policy change. Until now, Arizona had some of the lowest car insurance liability minimums in the country. Supporters of the bill say insurance requirements need to keep pace with rising costs for medical care and auto repairs, while detractors worry about raising insurance premiums for those who can't afford them.
Stapley explains, "When it comes to your car insurance, you deserve more than a card tucked in your glove box — talk to a local professional that will give you smart, customized coverage and real peace of mind."
For more information please visit the website at http://www.mikestapley.com or call 480-503-4400.
American Family Insurance - Mike Stapley
4850 E Baseline Rd Ste 101
Mesa, Arizona 85206