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QuestionInsurance Question  My current car insurance company informed me that in Arizona me and my passengers would be covered by the "medical" benefits coverage of my insurance. They say the state has a cap on this coverage of $15,000 per person/per accident. I don't feel this is nearly enough. I am new to AZ and am trying to find a better option for me and my family and can't find the reasoning for this on the gov. sites.

AnswerAuto Insurance Answer

Arizona requires that every motor vehicle operated on their roadways to be covered by one of the statutory forms of financial responsibility, more commonly called liability insurance, through a company that is authorized to do business in Arizona. This includes golf carts, motorcycles and mopeds.

As of August 2006, minimum levels of financial responsibility are:

  • $15,000 bodily injury liability for one person and $30,000 for two or more persons
  • $10,000 property damage liability

Bodily Injury pays for bodily injury to others for which you become legally responsible due to an auto accident in which you were involved. It does not pay for bodily injury you may sustain. You would need to have Medical Payments coverage in order to have the injuries you sustain in an auto accident covered under an auto policy.

It would appear that you have the optional Medical Payments coverage on your current AZ auto insurance policy as well as the required liability. Medical Payments provide coverage for necessary and reasonable medical and funeral expenses incurred as the result of an automobile accident up to the limit stated in the policy for you or passengers in your vehicle. $15,000 is a high limit for Medical Payment options as this is usually a supplement to your other coverage.

There are other coverages that could extend to you or your passengers depending on the circumstances of the accident. For example, ask them about your uninsured motorist options. UM covers bodily injury you, your relatives who live with you and your passengers if they are injured in an accident caused by an uninsured motorist, or a hit-and-run driver.

To find out about the insurance laws of Arizona you can search the Arizona Revised Codes, Title 20 at www.azleg.state.az.us or an easier way to find out about the limits of auto insurance and the reason the state provides for those caps is to contact the Arizona Department of Insurance.

This state agency has a consumer division that hopefully will be able to provide you with more information on AZ auto insurance. You can get a quote with us for Arizona automobile insurance coverage including the required liability and optional coverages.Motorycle insurance is available through this link.

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