Purchasing a new car is an exciting milestone, whether it’s your first vehicle or an upgrade to a newer model. Along with the thrill of driving a new set of wheels, it’s also an opportune moment to revisit your auto insurance policy. For Arizona residents, ensuring that your coverage aligns with your new car’s needs is crucial. Here’s why reviewing your auto insurance is essential and what you should consider.
Understanding Arizona’s Auto Insurance Requirements
Arizona law mandates that all drivers carry a minimum level of liability insurance. This includes $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $15,000 for property damage. While these are the minimum requirements, they might not be sufficient for your new car, especially if it’s a high-value vehicle. Purchase higher bodily injury and uninsured and underinsured motorist coverage to protect your assets. You’ll be surprised its relatively inexpensive to add a personal liability umbrella for $1m – $10m in additional protection.
Evaluating Your Coverage Options
When you purchase a new car, you might want to consider additional coverage options beyond the state minimums. Here are some options to explore:
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Comprehensive and Collision Coverage: These coverages protect your car from damage due to accidents, theft, vandalism, and natural disasters. If your new car is financed, your lender may require these coverages.
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Gap Insurance: If you financed your car, gap insurance covers the difference between what you owe on your car loan and the car’s actual cash value in the event of a total loss.
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Uninsured/Underinsured Motorist Coverage: This protects you if you’re involved in an accident with a driver who lacks adequate insurance.
Factors to Consider When Reviewing Your Policy
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Vehicle Value: A new car typically has a higher value than an older model, which may necessitate increased coverage limits. Newer cars are now like driving a “computer’ down the road – they have all sorts of sensors built into the bumpers, windshields and cameras. This is what drives the insurance cost if the vehicle needs to be repaired or replaced due to a covered loss.
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Driving Habits: Consider how often and where you drive. Frequent highway driving or long commutes might increase your risk of accidents, suggesting a need for more comprehensive coverage.
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Discounts: Check for available discounts, such as those for bundling policies, having a clean driving record, or installing safety features in your vehicle.
Reach Out for Personalized Guidance
Reviewing your auto insurance policy when you purchase a new car is a prudent step to ensure you’re adequately protected. As an independent insurance agency, we are here to help you navigate your options and tailor a policy that suits your specific needs. Feel free to reach out to our agency for more information or to schedule a consultation. We’re committed to helping you drive with confidence and peace of mind.
Note – We do not charge fees to provide you with a comprehensive review for your insurance. Call us today 520-797-9900 and an associate can research all options available.
