Most people who own a vehicle already understand the need for general liability coverage. In fact, the state of Arizona requires drivers to purchase a minimum amount of bodily injury and property damage insurance. However, this type of coverage is not sufficient to protect you in all circumstances.
If someone else who does not have liability insurance causes an accident that injures you or damages your property, your own liability coverage won’t cover the related expenses. For this reason, you also need to purchase uninsured and underinsured motorist coverage.
Understanding UI and UIM Coverage
Uninsured and underinsured motorist policies provide benefits when you are involved in an accident caused by another driver who isn’t carrying enough insurance to cover your losses. Hit-and-run accidents may also be covered by UI or UIM policies in some cases.
In the state of Arizona, purchasing UI and/or UIM coverage is optional for motorists. However, carrying this type of insurance is always recommended, as the losses from a single uninsured accident may be catastrophic.
Reasons to Carry UI and UIM Coverage
Even though state law requires drivers to carry a certain amount of liability insurance, as many as 15 percent of drivers ignore this legal requirement and remain uninsured. Other drivers on the road may carry low levels of coverage that are not sufficient to cover your losses in the event of an accident.
The number of drivers who operate without proper insurance coverage is only expected to increase in the future. Because of recent changes in the economy, many insurance companies allowed policyholders to defer their premiums or pay premiums at a reduced rate. However, these relief measures are not intended to be permanent. When insurance bills become due again and/or increase, some people may decide to purchase a policy with lower limits or discontinue their insurance coverage temporarily. As a result, it is even more important for motorists to have adequate protection.
Purchasing the Right Amount of UI and UIM Coverage
The amount of UI and UIM coverage you need to purchase will depend on the specifics of your situation and needs. However, in general, purchasing the lowest limits available is not recommended. In order to provide the protection you need, your UI and UIM policy must include enough coverage to replace your property and/or compensate you for all injuries in the event of an accident. A trained independent insurance agent can help you determine the best policy limits for you.
Keep in mind that all types of insurance coverage, including the liability coverage required by state law, will come with limits. In the state of Arizona, the minimum amount of liability insurance required recently increased, indicating that the previous limits were not high enough to protect the typical vehicle owner from loss. In light of these changes, drivers in the state of Arizona should consider raising the limits on their policies even above the new state minimum to ensure that they are not at risk.
Exploring Your Coverage Options
If you are in need of UI and UIM coverage, or if you think you may need to raise your current policy limits, you need to speak with an independent insurance agent as soon as possible. Please contact Smart Move Insurance in Phoenix, Arizona, today to discuss your situation and learn more.