Auto Insurance

Three Reasons You Need Auto Insurance

Three Reasons You Need Auto Insurance

1. You’re Protected

No matter how good your driving skills are you can’t protect yourself from other drivers. You also can’t control road conditions, weather conditions, mechanical failures and many other variables that come into play when you hit the road. Auto Insurance will give you someone to turn to who is on your side when an accident happens. You can get behind the wheel knowing you are covered if the worst happens.

2. It Makes Financial Sense

Not only will auto insurance protect you when you have an accident, but it also keeps money in your pocket. Sure, you are paying premiums every month, but the costs that you will incur from an accident will far exceed the amount you pay for coverage.

Let’s look at the facts. A minor car accident where the car is still driveable and no one was injured will cost between $200 and $1000. If you are involved in a major accident with significant damage as well as injuries, you can expect the cost to start at $5000 and can often end up in the tens of thousands of dollars range. When you have insurance, your out of pocket cost for an accident may be as little as $100. It makes good financial sense to have insurance and pay your premiums. You’re rolling the dice on your financial future when you go without auto insurance

3. It’s the Law

Arizona law requires that you have auto insurance coverage. You must have liability insurance that covers damages to other drivers’ vehicles. The law also requires you to buy bodily injury coverage which pays for the medical expenses, lost wages and pain and suffering to others involved in an accident. The consequences are great if you cause an accident and you are uninsured. You will be fined and could lose your license and your vehicle’s registration. You may be sued by the other driver and spend years battling it out in court. The best choice is to follow the law and get the coverage you need.

What Coverage Am I Required to Buy?

Required coverage may differ depending on what state you live in.  In order to operate a motor vehicle on Arizona roadways (as of July 1st, 2020), your auto insurance policy is required to have the following liability coverage, also known as the state minimum:

  • Bodily injury – $25,000 per person and $50,000 total per accident
  • Property damage – $15,000 per accident

Though these limits meet the legal requirement,  they are often times not sufficient to fully cover your financial obligation should you cause an accident.  At Red Rock we highly recommend that you carry higher than these state minimum limits.  For more personalized advice, please contact us and we would be happy to answer any questions you may have.

What Additional Coverage Can I Buy?

There are many optional types of coverage you can add to your policy in addition to your liability coverage. The additional coverage you choose will depend upon what you can afford and how much risk you are willing to take. Here are some of the additional coverage options you can consider:

  • Collision coverage will cover the damage to your car when you are involved in an accident.
  • Comprehensive coverage will take care of damages to your car that are the result of something other than an accident like a break in or weather-related damage.
  • Medical Payments coverage will increase the total amount paid for medical expenses.
  • Uninsured and Underinsured Motorist coverage will protect you when you are involved in an accident with another driver who does not have insurance coverage or who does not have adequate insurance to cover your costs.
  • Glass Repair coverage will pay for windshield repairs and replacements.
  • Rental Car Reimbursement pays the cost of renting a car when your car is being fixed due to an accident.

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