Basic Liability Coverage By Elena Casillas At Isnare.com Ezine Articles

The Arizona state law requires a minimum automobile insurance coverage policy for all vehicle operators. According to the Arizona law, the “mandatory insurance” coverage required is commonly known as basic liability coverage. This “mandatory insurance” policy includes coverage for automobiles as well as other vehicles such as golf carts, motorcycles, and mopeds. Failure to maintain proper insurance coverage and show proof of financial responsibility can lead to vehicle registration suspension as well as the suspension of a driver’s license.

In Arizona, a vehicle operator must have basic liability coverage, which entails coverage for the following:

1. $15,000 bodily injury liability for one person involved in the accident

2. Up to $30,000 bodily injury liability for two or more persons involved in the accident

3. $10,000 of property damage liability

With the basic liability insurance coverage, a vehicle operator has a policy where the insurance can provide compensation to another party in an accident where the vehicle operator was found to be the party at fault, and therefore, liable for the damages to the other person and/or the other person’s vehicle.

According to the Arizona law, basic liability vehicle coverage on a vehicle is required immediately, before the operator can even the vehicle. Out-of-state automobile insurance does NOT cover a vehicle that is registered in the state of Arizona. The insurance company and owner of the vehicle need to submit proof of Arizona insurance, whether it is basic liability coverage or more coverage, within 30 days of initial vehicle registration. If at any time, a vehicle operator’s insurance policy is no longer valid and the Arizona Motor Vehicle Division receives notice from the insurance company, the Arizona Motor Vehicle Division will send a notice to the vehicle operator asking that he or she sends in documentation to verify the status on the automobile insurance.

Arizona law enforcement officers will ask for proof of insurance during any routine traffic stop or accident. If a vehicle operator fails to show proof of insurance, i.e. fails to show proof of financial responsibility, his or her driver’s license can be suspended and the vehicle’s registration can be suspended as well. In order to resolve the vehicle suspension, there are fees that the violator must pay in order to begin driving the vehicle legally.

Although this type of liability coverage satisfies the state-required vehicle insurance, you may want to consider another type of vehicle insurance policy if:.

1. You are depending on your automotive insurance policy to have sufficient coverage above the Arizona state mandatory insurance coverage law.

2. You do not want to be at a higher risk of getting sued due to low insurance coverage or insufficient insurance coverage.

3. You do not want to be at a higher risk of having someone putting a lien on any of your assets as a result of low insurance coverage or insufficient insurance coverage.

4. You would like your insurance policy to pay for the cost to rent a loaner vehicle if you need a loaner vehicle to drive while your vehicle is undergoing repairs after an accident.

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