coveringyourassets

Helping you protect what you've worked so hard to obtain.

AZ House Voted Down Proposed Legislation to Impound Uninsured Vehicles

Last Thursday, March 22, 2012, the Arizona House Appropriations Committee voted down a bill that would have required police to impound on the spot any vehicles they found to be uninsured during routine traffic stops.

While the bill sounds good at first – the insurance industry did not support it.  Why, you ask?  Wouldn’t it just create more revenue for them?  Well, the Arizona Department of Transportation, which oversees MVD operations, has reported there are as many as 200,000 incorrect entries in their database – often due to the insurance providers entering an incorrect VIN number for vehicles, or due to an MVD employee making a typo.

Do we really want to impound someone’s vehicle (who’s legally insured) due to a clerical error?  Also, who’s going to pay for the towing and impound fees in such a case?

I think we can all agree that the purported 10-14% of Arizona drivers who are driving uninsured is a huge problem that affects us all.  Let’s hope our legislators can come up with a better way of dealing with it that won’t impact people who are following the law but had their information entered incorrectly into the system.

If you have any questions about your car insurance or would like a free quote, please contact us.  We’re well behaved, don’t bite (often), and will always respect your time.

Go Time Insurance, (602) 938-1515

 

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What are Arizona’s Minimum Car Insurance Requirements?

Most Arizona drivers know that the state requires 15/30/10 car insurance – but, do you understand what those terms mean?

Every state mandates its own minimum requirements, and Arizona’s lawmakers made ours 15/30/10. 

The first two numbers indicate the level of bodily injury coverage that’s required.  $15k per person per accident, and $30k total per accident.  So, if you caused an accident injuring three people and, for demonstration purposes, they each had $15k in medical bills, only two of them would be able to collect on the insurance policy.  The first two who submitted claims would have access to the $30k limit for bodily injury.  The third person would have to sue you to try to collect for their medical bills.

The number “10” refers to the amount of property damage coverage that is available on the policy.  In this case, there would be $10k available to pay for any damage you caused to their vehicle.

As you can see, these minimums truly are minimum.

Will minimum state coverage work for you?  Well, there are several ways you can look at this question.

  1. From a purely legal standpoint, this will satisfy the requirements of the law and you won’t get cited for not having insurance.
  2. However, from a “covering your assets” perspective, it most likely will not be enough coverage.  Keep in mind, that any deficit in your insurance coverage in relation to the injuries/damage you cause will legally be your responsibility to pay for.  If you have other assets (such as a home, business, or investments) that a plaintiff (because at this point, it’s a lawsuit) could go after, trust me — they will.  So, in order to cover your assets adequately, you’ll need to discuss with your insurance agent the level of coverage you’d need to ensure you can keep all the stuff you’ve worked so hard to get.

If you have any questions as to whether you’re adequately covered, please give us a call and we’d be happy to go over your coverage with you.

Go Time Insurance, (602) 938-1515

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