As with most states, AZ requires motorists to obtain compensation in order to legally operate a motor vehicle and proof of financial responsibility must be shown before an automobile can be registered with the state. The Grand Canyon State allows residents to abide by this law in a few different ways including obtaining a bond or certificate of deposit of cash in the amount of $40,000. Although these options are available to residents, in many cases these methods of satisfying the state’s laws may not be feasible for some individuals due to the expense and amount of money needed; not very many people have $40,000 laying around or are willing to deposit it with the state.
The most common way that motorists choose to abide by the Financial Responsibility Law is to purchase a policy from a licensed Arizona auto insurance company. It is for this very reason that it is important that motorists understand how to find the cheapest rates in order to keep the cost of coverage as low as possible in order to maintain continuous protection and stay within the state’s legal requirements. Currently, AZ requires as a minimum that motorists carry policies consisting of no less than Bodily Injury Liability of $15,000 per person, $30,000 per accident and $10,000 for Property Damage Liability. If an individual does not do the necessary homework and take the time to understand how to lower premiums they can end up paying far more than they should for a policy.
If a person is a current policyholder and that have been steadily seeing their rates increase it may be wise to begin shopping around and comparing the prices of various other insurers to ensure that their carrier is still competitively priced compared to other providers in AZ. People may wonder why their premiums increase even if they have not had any tickets or accidents during the term of the policy; in many cases this has nothing to do with the insured, but the insurer themselves. Usually when a carrier begins to raise pricing it is due to the amount of losses that they have experienced in a recent timeframe and they must increase revenue to balance out for the money that they have lost. So if an individual sees they have had an increased premium they may want to comparison shop because there is probably a company available that has not suffered the same amount of loss and can offer a more affordable rate; it is also a good idea to occasionally compare rates even if they have not seen an increase in their bill because other companies could have lowered rates or a cheaper carrier may have entered the market.
The best way for a person who has yet to purchase a policy to find the cheapest insurers is to shop around and get quotes from as many companies as possible. Each insurer will view each applicant differently based on the criteria of the driver and the experience that they have had with similar drivers; in most cases the lowest priced insurer will vary for two motorists with many similarities due to small differences. The Arizona Department of Insurance also suggests that consumers be sure and take advantage of any discounts that are applicable. Carriers in AZ offer drivers a discount for being accident free, insuring more than one automobile with the same company, being a good student and/or a non-smoker and discounted rates for vehicles with air bags and automatic seatbelts. Motorists should be aware that discounts offered and the amount discounted will vary with each insurer. Another way to lower premiums is to raise deductibles if you have comprehensive and collision coverage, but keep in mind that this is the amount that will have to be paid in the event of a loss so be sure not to choose a high amount that cannot be afforded if the vehicle were to sustain damage.
Source: http://www.onlineautoinsurance.com/arizona/
