Why is it important to shop and compare various deals available for your car insurance? One reason is that car insurance rates risen significantly. In the United States, premiums have risen by an estimated 23% since 2011. This rise stems from factors such as higher costs of repairing vehicles involved in a car accident and an increase in distracted driving accidents.

Finding Affordable Car Insurance

Car insurance is a required expense for all drivers. It is important to protect you in case your car is damaged, you are involved in an accident, or you your car is stolen. You want to find coverage that provides adequate coverage.

In this post, we will discuss some terms to know and trends to understand as you look for auto insurance and provide some of the best car insurance deals.

Ways to Find Great Deals

There are various ways to shop and compare your car insurance options. You may directly visit insurance company websites or call them to obtain a price quote. One uncommon approach is one you have probably seen in ads from Progressive: they show the rates of their competitors when you obtain a quote.

Shopping directly through the insurance company’s website can be time-consuming, as the process of visiting multiple sites or calling them and repeatedly entering or providing your information is redundant. When you shop directly through the insurer, they will likely have various policies for you to consider. The drawback is that the presented options are all from that carrier.

Shopping Through a Captive Insurance Agent

Many large national auto insurance companies sell their policies through captive agents. These are professional, local agents that may offer various types of insurance, but only represent one carrier.

Many people choose a captive insurance agent because they prefer personal service and support from a local agent. The drawback with a captive agent is they are unable to shop multiple carriers to find you the best rate.

Finding Deals Using Comparison Sites

There are various websites such as QuoteWizard that specialize in comparing options from multiple insurers in your area. Many shoppers find these sites to be an efficient way to shop. Oftentimes, these sites only represent the large national carriers, limiting your ability to consider policies from many local or regional insurers.

The Minimum Coverage Requirements in Arizona

All Arizona motorists are required to maintain the state minimum levels of liability coverage. This does apply to those operating a motorcycle, moped, and even a golf cart. The mandatory insurance requirement, which is often abbreviated as “15/30/10,” is as follows:

• Bodily injury insurance coverage of $15,000 per person
• Bodily injury insurance coverage of $30,000 per accident involving multiple people
• Property damage liability coverage of $10,000 

Bodily injury liability insurance is used when you are found to be responsible for causing an accident that injures someone else. The property damage coverage applies when you are responsible for causing an accident that damages someone else’s car or other property. It is important to recognize that liability insurance does not pay for your injuries or damage to your vehicle.

Recently passed legislation will raise the required minimum levels of liability insurance in Arizona. This is the first increase in decades and it will take effect in July of 2020. The new minimums will be as follows: bodily injury insurance of $25,000 per person and $50,000 per accident. The property damage liability coverage minimum is increasing to $15,000.

Collision Insurance

This type of coverage will pay for repairs or replacement of your vehicle when in an accident. If you cause an accident, your liability coverage covers injuries and property damages that other motorists incur. Meanwhile, your collision coverage would be used for your vehicle repairs. Collision coverage is also for situations such as a collision with a pole or tree.

Rising Costs of Collision Insurance

The cost of the average brand new car today exceeds $37,000. This potential replacement cost significantly increases the cost of insurance coverage because the insurer knows that if the vehicle were totaled, they would be paying upwards of $30,000 to replace it. Aside from the overall replacement cost, the price of repairing a newer vehicle involved in a collision is higher than an older vehicle.

Data from the U.S. Bureau of Labor Statistics indicates that vehicle repair costs rose by more than 61% between 2000 and 2017. The way that car manufacturers are building newer vehicles contributes to the increase in repair costs.

The days when cars had a sturdy steel bumper on the front and rear are gone. Instead, the body panel materials tend to be some form of lighter-weight, composite material. After a moderate collision, these exterior body materials generally need replacement rather than repairs.

Newer vehicles today also contain sensors, cameras, and other safety features that are integrated into the exterior body. For example, regulators now require that all new vehicles have a rear backup camera. If these vehicles are in a rear-end collision, the repairs will likely involve replacing these electronic systems in addition to the body panel.

Insurers deem a vehicle that is involved in a collision to be “totaled” when the repair costs plus the scrap value exceed the current value of the vehicle.

Comprehensive Insurance

Comprehensive coverage is similar to collision because it is used to repair or replace your vehicle. The difference is that this coverage applies when the damage is incurred in some way that does not involve a collision while operating. For example, comprehensive coverage is used to replace your vehicle if it were stolen. Keep in mind that certain types of vehicles are more likely to be stolen and insurers adjust their rates accordingly.

Other examples of when comprehensive coverage would apply include hail damage or vandalism. Those who have auto loans are required by the lender to maintain full insurance coverage for their protection. The financial institution that you are making payments to is using the vehicle as collateral if you default on the loan.

Are You Shopping for “Full” Coverage Insurance?

Those with a car of moderate value will generally obtain “full” coverage insurance. This term refers to having at least liability, collision, and comprehensive policies.

Those with a vehicle that is only worth a couple of thousand dollars may consider maintaining only liability insurance coverage. Lenders require full coverage in the event that something happens to the vehicle, so you have to have paid off your loans in full to decline comprehensive coverage.

How Deductibles Impact Insurance Costs

If you are comparing potential auto insurance options, it is important to consider the deductible amount. A deductible is the amount that the insured party must pay “out of pocket” when an insurance claim is made. The auto insurance deductible applies to your comprehensive and collision coverage.

Failing to consider the deductible amount would result in an inability to do an “apples to apples” comparison, as common deductible amounts range from $500 to $2,500. Those seeking to save money on the cost of their insurance premiums may choose a higher deductible amount.

We will consider the following example to illustrate how this works. You are driving a car valued at $10,000 and have a $1,000 insurance deductible. When your insurer deems your car totaled after an accident that results in tremendous damage, you must pay the $1,000 deductible amount and then your insurer will pay the remaining $9,000.

Uninsured and Underinsured Motorist Coverage

Uninsured motorist coverage is used to repair or replace your vehicle if involved in an accident with a motorist without liability insurance. This coverage may apply if you were involved in an accident with a “hit-and-run” driver that flees the scene.

Underinsured coverage commonly occurs if you are involved in an accident with a motorist who has state-minimum liability insurance coverage. If the other motorist is determined to be responsible for the accident, you will file a claim with their insurer. Underinsured coverage will pay any amount necessary to repair or replace your vehicle beyond the limits of their liability coverage.

What Factors Do Insurers Consider to Calculate Rates?

• Demographics: Insurers use data such as your age, gender, and marital status to determine their rates. For example, teenage males pay among the highest premiums based on their lack of driving experience and potential for risky behavior. 
• Location: Your zip code provides insurers with insight into whether you are likely to be driving in urban or rural areas. They also may consider the rates of automobile theft in your area for calculating comprehensive coverage premiums.
• Credit: Data suggests that those with a poor credit history are more likely to file an insurance claim, so insurers would raise their premiums. 
• Claims history: There is a central database called CLUE that contains any insurance claims individuals has filed in the prior seven years. Insurers generally consider a driver’s history of insurance claims as an indicator of their likelihood to have future claims. Similar to your credit report, consumers are eligible to receive one copy for review each year.
• Your vehicle: Insurance companies may consider that those driving high-performance or sports cars as more likely to drive recklessly. The value of your specific vehicle is critical to insurers, as they may potentially have to pay to replace higher-priced vehicles. Certain models are also most likely to be stolen; often this results from known security flaws that thieves are aware of.

Most Common Car Insurance Discounts Offered

Those who are members of certain organizations may be eligible for discounts. Examples include those who are employees of a certain company, active military members, or those in certain professional organizations.

Insurance companies typically will offer discounts for those who “bundle” multiple types of insurance. For example, if you purchase both your auto insurance and home insurance from the same company, the premiums for both will be slightly less expensive than they would be otherwise.

Some insurers may offer loyalty discounts. An example would be for young drivers that are added to their parent’s existing auto insurance policy. “Safe driver” discounts, such as offered by Liberty Mutual, may be available for those with an excellent driving record.

Best Car Insurance Deals Available from Insurers in Arizona

Here are some examples of current special offers that are available for Arizona motorists that qualify.

• Progressive: They are offering a 10% discount on car insurance for those who also purchase home insurance. 
• Foremost: The company is promoting discounts for those who will be switching from another insurer
• Travelers: Those who have no accidents, traffic violations, or insurance claims for the past three years may save 10%
• Safeco: Recent promotions include a Low Mileage Discount for those who drive less than 8,000 miles per year.

Usage-Based Insurance Deals

Car insurance companies such as Progressive are now offering auto insurance that is often referred to as being “usage-based.” The company may have some type of application or device that tracks your driving habits for a period of time. Progressive’s Snapshot Program is one popular example. The company claims that many drivers can save $130 annually on premiums.

Shopping for Insurance Deals With a Local Independent Agent

Consumers who are exploring their options for car insurance should consider a local independent agency. Unlike a captive agent that exclusively represents a single carrier, an independent agent can consider options from multiple insurers. They will shop on your behalf to find a competitively priced policy that is suited for your specific needs.

Established Automobile Insurance Provider in Pinal County

The Gebhardt Insurance Group began operations in 2005 in Casa Grande. Over the years, we have witnessed the population of the county nearly double in size. We are proud to offer affordable insurance products from the leading carriers and excellent customer service. We encourage you to contact our team of professionals today at (520) 836-3244.

The purpose of car insurance is to provide economic compensation if something unexpected happens involving your vehicle. The insured party enters an agreement with an insurer, that contains the terms. This includes details such as the policy coverage period, the maximum limits of coverage, and the cost (premium). As with most types of insurance, states develop their own set of rules and provide some oversight in the market.  

Why Is Auto Insurance Important?

Maintaining car insurance is critical for several reasons. First, Arizona law requires that all motorists maintain minimum liability coverage. Secondly, automobile accidents are fairly common, so having this financial protection in place is important. Data from the Arizona Department of Transportation indicates there were 127,056 reported vehicle collisions in 2017. These crashes claimed 1,010 lives and caused more than 53,000 injuries.

More than 90% of car accidents are the result of human error. In recent years, we have recognized the dangers of distracted driving. The Centers for Disease Control and Prevention estimates that distractions cause nine accident fatalities each day in the U.S. The problem is largely the result of drivers who are using mobile devices. Newer vehicles also are being equipped with more sensors that create visual and audible distractions as well as onboard electronics.

The prices of newer vehicles continue to rise. Many people do not have the cash-on-hand to repair their car if it is significantly damaged in an accident. In fact, 40% of Americans would be unable to pay for an unexpected expense that exceeds $400 without borrowing. Between 2015 and 2017 there were 7.4 insurance claims filed for every 100 people. Lenders require those who are financing a vehicle to maintain “full” insurance coverage.

Arizona Car Insurance Requirements

Those registering a vehicle in the state will need to have proof of liability insurance coverage. This covers other people and their property in an accident. Insurance companies in Arizona must notify the Motor Vehicle Department when a policy is canceled, not renewed, or a new policy is issued. Drivers must have proof of insurance with them in case they are stopped by law enforcement. This proof may be shown using a smartphone.

*Uninsured and underinsured coverage is required to be offered as part of all liability insurance policies. Policyholders may opt-out of this coverage.

Bodily Injury and Property Damage Liability

The state-mandated bodily injury coverage is used when a driver causes injuries to others. This coverage does not pay for injuries sustained by the party who is at fault in an accident. The property damage coverage pays for damage caused to other vehicles, objects, etc. It is worth noting that the mandated minimum liability coverage also applies to motorcycles, mopeds, and personal golf carts.

Legislative Update

The Arizona Legislature has determined that it is time to increase the minimum requirements that have been in place since 1972. Governor Doug Ducey signed a new law that raises the bodily injury liability requirement to $25,000 per person and $50,000 per accident. The minimum property damage liability requirement will be increased to $15,000. Last year he had vetoed a similar measure citing concerns with affordability.

Penalties for Failing to Maintain Coverage

Those operating without the mandated insurance that the state requires will face a driver’s license and registration suspension, in addition to fines. To restore driving privileges, the motorist must obtain an SR-22 Certificate of Insurance and it must be maintained for a three-year period. Those who do not reinstate their Arizona license from failing to have insurance will be unable to obtain a driver’s license in another state.

Other Types of Insurance Coverage

• Uninsured and underinsured motorist: Uninsured motorist coverage is used in case you are involved in an accident caused by a driver that is uninsured. Underinsured coverage applies when the driver responsible for the accident has insurance coverage limits that are insufficient to cover the full cost of damage.
• Collision: This coverage is used to pay for car repairs or replacement of your vehicle when involved in an accident. It is most commonly used when you are the at-fault driver in the accident. It also may apply if you were to strike a tree or other object while driving.
• Comprehensive: This form of coverage is commonly referred to as “comp.” It is purchased in conjunction with collision coverage to obtain “full” coverage. It is used to repair or replace your vehicle stemming from an event other than a collision. Common examples include theft, vandalism, or fire. Full coverage policies often contain a provision that covers the cost of a rental car when necessary during repairs.
• Medical Payments: This coverage is commonly referred to as “Med Pay” or Personal Injury Protection. This is an option that will cover any medical bills for you and typically any passengers in your vehicle. Examples would include if you needed an expensive surgical procedure or rehabilitation. Those who lack health insurance coverage are among those most likely to purchase it for medical expenses.

Local Agency for Car Insurance in Pinal County

It is important to gain a good understanding of how car insurance works. The Gebhardt Insurance Group is an independent insurance agency that represents many of the leading auto insurance companies. Our customers benefit from our personalized approach. We will look closely at your individual circumstances to make sure you have proper coverage for you and your family. Contact our office today at (520) 836-3244.

Automobile insurance is used to provide financial compensation in case unexpected events occur involving our vehicles. A policyholder and an insurer enter a legal contract outlining various provisions such as the length of the policy, maximum coverage amounts, etc. Each state adopts laws pertaining to auto insurance.

Most states have some clearly defined minimum levels of coverage that all drivers must maintain. Drivers regularly buy policies with much higher limits than the state minimum requirements for various reasons. Those who purchase higher amounts of coverage obviously will pay a higher rate, known as the insurance premium. We will address the many factors to consider when determining how much car insurance to purchase.

Why is Auto Insurance Important?

One reason that states mandate car insurance coverage is that accidents are common. Many collisions are “fender benders” where there is only minor vehicle damage; however, severe accidents are also common. The National Safety Council reported that roadway fatalities exceeded 40,000 across the country for the third consecutive year in 2018.

The costs that are associated with car crashes are staggering. In Arizona, annual losses stemming from fatal crashes alone exceed $1 billion. The majority of losses from vehicle accidents are attributed to medical expenses and the often lengthy absences from work that occur.  

What Are the Minimum Requirements in Arizona?

The Arizona Department of Insurance is the primary state agency that regulates the vehicle insurance market. Drivers are required to maintain “15/30/10” in minimum coverage as follows:

• $15,000 in coverage per person in bodily injury liability
• $30,000 in coverage per accident in bodily injury liability
• $10,000 in coverage for property damage liability

Although policyholders may decline the coverage, the state requires that insurance estimates (quotes) must include uninsured and underinsured motorist coverage. These may be used if you are involved in an accident with a motorist who either lacks coverage or a sufficient level of coverage. Arizona’s minimum insurance requirements also apply to motorcycles, mopeds, and personal golf carts.

Optional Forms of Auto Insurance to Consider

Collision Coverage

Liability insurance covers injuries and property damage that other drivers incur when you are at-fault in an accident. If another party is at-fault in an accident you may file a claim for repairs with their liability insurer. Collision coverage is used to repair or replace your vehicle in the event of a crash. This coverage, as the name implies, is applicable if you were to collide with another vehicle, tree, or another object.

Comprehensive Coverage

This form of coverage is used to repair or replace your vehicle when incidents occur that do not involve a collision. Some common examples would be acts of vandalism or if your vehicle was stolen and is unrecoverable. Other scenarios may include that your vehicle catches fire or a tree falls on the car.

The premium amount for collision and comprehensive coverage may vary significantly depending on the value of your vehicle. The insurance company knows that there is a possibility they may need to replace your car. Another costly factor on many newer vehicles is the often high price of replacing all safety and technology equipment now included.

Medical Payments Coverage or Personal Injury Protection

There is also an option to add coverage that specifically will pay for medically-related expenses in case you or a passenger is injured. Accidents occurring at high speeds are more likely to result in severe injuries that may require surgical, dental, or rehabilitative care. Individuals who do not have health insurance coverage are the most likely to purchase these plans.

Those without health insurance should be aware that medical treatment can be very expensive. For example, a broken leg can cost a total of roughly $7,500. A three-day stay in the hospital may easily exceed $30,000. Having to pay these expenses “out of pocket” can be financially devastating.

Uninsured or Underinsured Motorist Coverage

State laws require that motorists maintain the required minimums of liability coverage. Uninsured motorist coverage will provide financial compensation if you are in an accident with a driver who lacks coverage. It also may be used if another motorist flees the scene of an accident, referred to as a “hit-and-run”.

Underinsured motorist coverage is becoming increasingly important in many areas including Arizona. This is because the current minimum requirements have remained the same since 1972! In the meanwhile, the cost of passenger vehicles has risen considerably. This combination of factors makes underinsured coverage very helpful to cover repair costs that exceed the policy limits.  

Having Sufficient Insurance to Satisfy a Lender

With the high cost of new vehicles, it is no surprise that roughly 85% of those purchased are financed. The lienholder will require the driver to maintain “full coverage” to protect their collateral. This same requirement will apply to any leased vehicle. This coverage is critical in the event that the car you are financing is damaged. You could potentially be responsible to make the remaining payments on a vehicle that is inoperable.

Having Sufficient Insurance to Protect Your Assets

If you cause an accident that results in a significant injury, property damage, or a fatality, you could potentially face a civil suit. In this situation, another party sues you personally for damages that exceed the limits of your liability coverage. This is particularly important for those with significant assets such as a home.

GAP Insurance

This type of auto insurance coverage ensures you receive enough compensation to pay off your car loan if the vehicle is a “total loss.” If your vehicle is totaled, the insurance company will compensate you based on the current estimated market value of your vehicle. Automobiles tend to depreciate or lose value each year. What can occur is that the market value is less than the remaining loan balance—“a gap.”

Coverage for Custom or Aftermarket Equipment

Those who purchase upgrades for their vehicle, such as an elaborate sound system, may consider adding coverage for protecting your assets. This will generally require an added specification in your insurance policy provisions.

Umbrella Coverage

The term “umbrella” refers to a supplemental or secondary policy that may be used if your liability exceeds the policy limits. Those with significant assets that they wish to protect may consider this option. Often the minimum limit of these policies is $1 million.

Premium Affordability

A key consideration when determining how much insurance coverage you need is affordability. In Arizona, the average premium for a “50/100/50” policy is $621 annually. If you increase the limits to 100/300/100, the premium increases to $686.

Why Purchase Insurance Through an Independent Agency?

We all experience some changes throughout the course of our lives. During this journey, our insurance needs also may change. A great benefit to working with an independent insurance agency is their ability to offer you a wide variety of options. They are able to compare policy options from various insurance carriers to save money and provide adequate protection

Agency Offers Customized Car Insurance for Pinal County Drivers

One reason motorists in the Casa Grande area continue to purchase insurance through the Gebhardt Insurance Group is our personalized service. Our team of insurance professionals will find a policy that is a perfect fit for you! Please contact us today at (520) 836-3244.

Arizona law requires drivers to maintain liability insurance to cover the potential for financial liability if involved in a car accident. This mandate also applies to motorcycles, mopeds, and golf carts. The current minimum levels of coverage required for bodily injury is $15,000 per person and $30,000 per accident. A minimum of $10,000 in coverage specifically for property damages is also required.

Need for Car Insurance

Why does the law require you to have insurance? One reason is that driving is dangerous. In 2017, there were about 1,000 fatalities and 55,000 injuries incurred on Arizona roadways. The total number of crashes in 2017 was estimated as 127,064.

Auto Insurance: Expensive and Volatile

Across the U.S., there are more than 600 auto insurance companies serving the market of roughly 250 million drivers. According to a 2018 State of Auto Insurance report, the national average annual car insurance premium is $1,427.  Since 2011, the price has risen nationally by about 20%. Rates have changed in some states in one-year by as much as 60%.

Average Annual Rates Among Neighboring States

Avoiding Lapses in Car Insurance Coverage

The Arizona Department of Transportation has a Motor Vehicle Division (MVD) that enforces the laws pertaining to the liability insurance requirement. If you are canceling your auto insurance and will still be driving, it is critical that your coverage does not lapse. If involved in a traffic stop or accident, members of law enforcement will ask you to provide evidence of current coverage. In addition, insurers are required to notify the MVD when a policy is canceled or not renewed.

If you are caught operating a vehicle without the required coverage, your vehicle registration and driver’s license could be suspended. In order to restore your driving privileges, the state will require you to maintain an SR22. An SR22 is a certification of Proof of Future Financial Responsibility. This certification must be maintained for a three-year period.

Lapse of Coverage Impact on Rates

One of the many factors that may have an effect on car insurance rates involves prior coverage. Insurers tend to look favorably on those who have a history of continuous (uninterrupted) coverage. California is the only state that prohibits this from factoring into rate calculations.

Out-of-State Coverage

All those who register a vehicle are required to have liability coverage from a licensed insurer in Arizona.  The MVD requires that proof of legal coverage is received no later than 30 days after registration.

Updating Changes to Your Car Insurance in Arizona

Earlier we mentioned that insurers are required to notify the MVD when a motorist’s policy is terminated. The same requirement applies when an insurer issues a new policy.  It is possible that your new insurer may not send this MVD notification in a timely manner. This could trigger an alert that suggests you do not have the mandated insurance requirements.

To prevent potential headaches from failures in communication, the state has implemented ServiceArizona.com. This is a website that allows direct access to your MVD record. Those who are canceling or otherwise changing their vehicle insurance to visit the site and enter your new policy details.

Temporarily Discontinuing Vehicle Insurance

What if you will be out of state for an extended period or otherwise not driving your vehicle? If you discontinue your insurance coverage for any reason the insurer will notify the MVD. If no new insurance policy information is received, your registration and driver’s license may be suspended. In this situation, you must complete a De-insured Certificate, a form that can be easily completed online.

Ways of Cancelling an Auto Insurance Policy

• Over the phone: You may call your insurance company’s customer service department or your insurance agent. This tends to be a quick and easy way to cancel unless they require your signature.
• By mail: You may simply send your cancellation request in writing through the mail. It will be important to properly reference your policy number and the effective date of the cancellation.
• Visiting a local office: If your insurer or agent has a local office location you could stop there for cancellation. They will likely have you complete a form to finalize the process.
• Assistance from a new insurer or agent: They may be able to assist with canceling your existing policy by sending a fax. Make sure that you provide the policy number to avoid any confusion.

Cancellation for Non-Payment

It is possible that your policy is expiring and you simply allow it to lapse.  Keep in mind that some companies have a grace period that automatically extends coverage beyond the policy termination date. It is possible that you could be responsible to pay for this period of coverage. Keep in mind that if your policy is set up for automatic electronic billing you should formally make contact to cancel.

Obtaining a Refund for Remaining Period

If you have paid in advance for your insurance you will be eligible for a refund on the unused premium amount.  If you pay monthly it may be easiest to simply make your new policy effective date at the month’s end. If eligible for a refund, you can expect a check by mail in several weeks or electronic refund to your bank account.

Established Independent Insurance Agency in Casa Grande

The Gebhardt Insurance Group has been a trusted source for insurance among those in the greater Pinal County area for years. We are an independent agency that represents dozens of insurance companies and maintains a commitment to customer service. You benefit because we have the options available to ensure you obtain affordable coverage that is well-suited for your individual needs. Contact a member of our team of insurance professionals today to get started at (520) 836-3244.

If you own a vehicle in Arizona you are required to maintain the state’s minimum for automobile liability insurance coverage. Automobile insurance is important because accidents commonly occur and they may have significant financial consequences. In 2017 in Arizona, there were over 127,000 total accidents. Among these accidents, roughly 919 were fatal and over 37,000 injuries were incurred. Crashes involving motor vehicles in 2017 in Arizona caused approximately $10.7 billion in losses.

Premiums on the Rise

A report early in 2019 showed that drivers in Arizona saw a roughly 3% increase in auto insurance premiums. Many of those who have experienced increases had not been involved in an accident or had a traffic violation. Drivers in the Phoenix area have experienced the most dramatic increases. This is largely attributed to population growth, more traffic, and more accidents. In the U.S., the recent rise in the number of accidents is partially attributed to the widespread problem of distracted driving.

Minimum Requirements in Arizona

The state requires that all drivers maintain a “15/30/10” auto liability insurance policy, which is as follows:

• Bodily Injury Liability: $15,000 per person / $30,000 per accident
• Property Damage Liability: $10,000
• Uninsured Motorist Coverage for Bodily Injury: $15,000 per person / $30,000 per accident (may be waived)
• Underinsured Motorist Coverage for Bodily Injury: $15,000 per person / $30,000 per accident (may be waived)

These state required minimum coverage levels in Arizona also apply to personal golf carts, motorcycles, and mopeds.

Full Coverage

Motorists also have the option of adding comprehensive and collision insurance coverage. Collision coverage is used to repair or replace your vehicle when involved in a car accident while operating. Comprehensive is used to repair or replace your vehicle from other occurrences such a theft, vandalism, etc.

It is important to remember that these coverages may not really be optional. Those who are financing the purchase of their vehicle are required to maintain this coverage to protect the lender until the loan is paid off. These types of insurance have a deductible amount. This is a set amount that the insured must pay “out of pocket” before the insurance company assumes responsibility for the remainder.

Neighboring State Cost Comparison

The following analysis is based on “full coverage” for a 40-year-old male with policy limits of 100/300/50 ($100,000 for injury liability per person, $300,000 for all people injured, and $50,000 for property damage). The policy has a $500 deductible for collision and comprehensive coverage. The driver has a clean driving record and satisfactory credit score.

Importance of Accurately Comparing Policy Quotes

The market for car insurance in Arizona is overseen by the Arizona Department of Insurance (ADOI). ADOI encourages competition among insurance companies. When shopping for insurance it is critical that your comparisons are true “apples-to-apples.” This means that you will need to identify the key variables that we discussed earlier when comparing. This includes the limits of coverage and the deductible amounts—when applicable. Remember that just choosing the cheapest car insurance is not advisable if it does not truly cover your specific needs.

Driving Record and Claims History

A car insurance company will typically place great emphasis on your history of traffic violations and filed insurance claims. The Comprehensive Loss Underwriting Exchange (C.L.U.E) is a database that shows any claims that a driver has filed with their insurance company for the prior seven-year period.

Cost of Vehicle and Deductible Amount

The value of the vehicle you are insuring is of obvious importance to insurance companies in issuing comprehensive and collision policies. The replacement cost of many of today’s newer vehicles is sizable. In most cases, your premium will decrease as your deductible amount increases. For example, you may notice that changing your deductible from $500 to $1000 results in considerable savings.

Credit Score and Other Demographic Factors

Data has traditionally shown that those with good credit are less likely to file an insurance claim. Your age is likely to play a major role in the amount of your policy premium. The following chart (example) illustrates how one individual’s costs changed based on their age. Teenagers are viewed by insurers as being higher-risk motorists. This is because of their lack of driving experience and also their tendency to demonstrate more risky behavior.

Location

In a previous chart, we looked at a state-to-state average cost comparison. Your specific location, which is typically determined by your zip code, will also impact the premium cost. Those in urban areas have a higher likelihood of being involved in an accident. Certain cities have relatively higher rates of auto theft and other factors may be considered.

Multi-Policy Reductions and Other Discounts

Multi-policy discounts are often available when “bundling” different types of insurance from the same company. For example, you may insure your car and home with the same company. Look for the many different types of discounts that are available in the market. Some of the common types include those for seniors, students, those in the military and others. Some insurers offer members of certain groups such as professional organizations and alumni associations discounts to incentivize these individuals.

Importance of Using an Independent Agent

A captive insurance agent is one who represents a specific insurance company. Unlike captive agents, independent insurance agencies or brokers are able to offer policies from various insurers. The advantage of shopping through an independent agent is that they are better able to assess your individual policy needs and match you with a policy that is best-suited and most cost-effective for you.

Affordable Car Insurance for Arizona Drivers

The Gebhardt Insurance Group has been proudly providing insurance for individuals, families, and businesses in Casa Grande for many years. Our team of insurance professionals delivers customized insurance solutions and superior customer service.  We encourage you to contact us today at (520) 836-3244 for all of your insurance needs.

[1] https://www.insure.com/car-insurance/car-insurance-rates.html

A recent U.S. study reported that roughly 33% of Americans have never shopped around or compared prices for automobile insurance. Among these individuals, the leading reasons mentioned were a lack of time and a dislike of paperwork. However, it is wise to make car insurance comparisons by obtaining quotes either online or through your agent. Always maintain adequate levels of coverage to repair or replace your vehicle and to protect you from potential liability. As a precaution, be sure to review the “fine print” on policies that appear overly affordable as well.

Arizona Legislation Could Raise Insurance Rates

The Arizona Senate Committee on Transportation and Public Safety have proposed a measure that could soon cause premiums to rise meaning the time to consider and compare car insurance options is now. Arizona currently requires motorists to maintain a minimum of $15,000 in bodily injury liability per person ($30,000 per accident) and $10,000 in property damage liability coverage. SB 1087 would increase these levels from $30,000 per accident to $50,000 and increase property coverage from $10,000 to $15,000.

This would be the first increase in the liability minimums in over 40 years. Lobbyist Rob Dalager estimates that monthly premiums could rise by as much as $8.00 per month. A similar proposal passed in 2018; however, it was vetoed by the governor who cited affordability concerns among those with low income. Senator Lupe Contreras supports the measure because most vehicles today are unable to be replaced for $10,000.

Shopping Around

As with most consumer products, searching for the best deal is often the smart thing to do. Prior to comparing policies, you should have a basic understanding of auto insurance. Check with friends, relatives, and co-workers to see if they have any recommendations.

Choice of Vehicle

Your choice of vehicle is likely to impact your auto insurance rates. Cars that are expensive will be more costly to repair and replace. Expect sports and performance cars to be more expensive to insure. Certain models have minimal theft prevention measures and are commonly stolen. Be sure to check insurance pricing before purchasing your next vehicle.

Reduce Coverage

Look for opportunities to safely reduce your coverage. Those will an older car may consider no longer maintaining optional collision and comprehensive coverage. You can use tools online including Kelley Blue Book or Edmunds to estimate the value of your vehicle.

Selecting a Higher Deductible

Raising your deductible on your auto insurance policy can reduce your premium. However, you need to be sure that you will be able to comfortably afford paying the higher deductible if necessary. An increase from $200 to $500 may save you up to 30%. Raising the amount to $1,000 could potentially result in a 40% savings.

Multi-Policy (Bundling)

Consider available ways to save through “bundling” policies. You may be eligible for savings if you have multiple vehicles on the same policy. You may be able to switch your homeowners, renters, or life insurance to the same company and get better rates. Consult with your insurance agent to identify potential offers.

Drive Safely

Those who maintain a clean driving record through safe driving are typically afforded lower rates. Similarly, those who do not file any claims for a period of several years may be eligible for better rates. Keep in mind that insurers will look for any claims in the prior six-year period.

Maintaining Good Credit

Insurance companies use statistical data as a means of determining rates. Data has shown that those with good credit are less likely to file an insurance claim. It may be helpful to review a copy of your credit report to check for any errors that may hinder your credit standing.

Look for Discounts

Auto insurance companies routinely advertise discounts that you may qualify for. Students are often eligible for a discount by maintaining good grades. Senior adults or active members of the armed forces are often provided discounts as well. Some companies will offer a discount if you complete a defensive driving course.

Low Mileage Policies

According to the Federal Highway Administration, motorists in the U.S. currently drive an average of 13,476 miles annually. Those who drive well below average should consider a policy geared for low mileage drivers. It is estimated that these policies could save up to 10% on auto insurance premiums.

Potential Group Discounts

Those who are members of a professional organization or involved in an alumni group may be eligible for certain discounts. You should check with your employer to see if they have any group discount arrangements as well.

Consider Buying from an Independent Agent

Unlike captive insurance agents who represent a specific carrier, independent agents offer insurance through various carriers. Having an independent agent compare car insurance rates through multiple companies may end up saving you some money. These professionals are also likely to be aware of discounts that you may qualify for.

Established Agency for Auto Insurance in Arizona

The Gebhardt Insurance Group located in Casa Grande has been providing insurance solutions in the region now for over 15 years. We remain committed to providing our customers with excellent coverage at affordable prices. We now represent over 40 of the top insurance carriers. Contact our office today at (520) 836-3244.

Why is it important to shop around and compare your auto insurance options? First, state law requires all motorists to maintain minimum levels of liability insurance to cover injuries and property damage. Also, the price of automobile coverage continues to escalate and can be costly. The Insurance Information Institute reports that the total average annual cost of ownership for a new car is roughly $8,000. Part of this ownership cost is the annual insurance premium. According to AAA, the annual average cost of insurance (premium) for a mid-level sedan is $1,232.

Arizona Department of Insurance (ADOI) Publication

The ADOI oversees the market and they investigate consumer complaints. In 2018, they published the Premium Comparison and Complaint Ratios for Automobile Insurance. This report shows it is worthwhile to do some “comparison shopping”. They obtained hundreds of quotes from insurers using varying sets of consumer information such as age, the model of vehicle, prior driving record etc.

Importance of Comparing “Apples to Apples”

Automobile insurance policies contain many variables; therefore, you must identify these factors to accurately make comparisons. We will go through these many considerations to be sure you can determine if you need them or not.

Comparing Coverage Types

One key aspect that must be considered when comparing auto insurance policies is what types of coverage you are selecting. The primary types are:

Bodily Injury Liability: This covers injuries that you may cause to others when at-fault in an accident. The state requires that you maintain a minimum of $15,000 of coverage per person and $30,000 per accident total.

Property Damage Liability: This covers property damage that you may cause to others when at-fault in an accident. The state requires that you maintain a minimum of $10,000 in coverage. When referring to the state’s minimum required liability coverage, you may see it specified in an abbreviated format as 15/30/10.

Collision: This form of optional coverage is used to repair or replace your vehicle in the event of an accident. An example would be if you struck a tree with your vehicle. This coverage generally will apply to any vehicle that you are operating—not just your own.

Comprehensive: This form of optional coverage is used to repair or replace your vehicle following some other event than a collision. An example would be if your car was stolen or vandalized. When financing a vehicle, lenders require you to maintain both collision and comprehensive coverage to be sure their collateral (your vehicle) is protected.

Medical Payments: This coverage is also commonly referred to as Personal Injury Protection. It is used to pay for medical expenses that may result from accident injuries. This coverage may extend to passengers that are in your car at the time of an accident. This may be a coverage selected by those who do not have health insurance coverage.

Uninsured and Underinsured Motorist: Some motorists fail to comply with the mandated liability coverage requirements. Uninsured coverage will pay for your costs if the other motorist lacks coverage. It also may apply in a “hit and run” or “hit-skip” accident. Underinsured motorist coverage is used for covering losses that may exceed the limits of the other driver’s policy coverage.

Recent Legislation: AZ Minimum Liability Coverage

The state’s mandatory minimum for bodily injury and property damage liability coverage of (15/30/10) was implemented in 1972. In 2018, the legislature proposed increasing the minimum requirements to (25/50/25). Governor Doug Ducey vetoed this legislation, citing concerns that the increase would make insurance coverage unaffordable to many low-income motorists.

Understanding Deductibles in Comparing Policies

Deductibles are a fairly standard component of collision and comprehensive auto insurance policies. This is the amount that the insured must initially pay “out of pocket” before the insurance coverage assumes payment. Common deductible amounts range widely from $250 to $1500 and beyond. An example to consider is if you had an accident that caused $2,000 in damage. If your policy deductible was $500, the insurance company would pay $1,500 after you have satisfied the deductible.

Understanding Repair and Replacement Cost

Auto insurance companies will typically adjust their rates of collision and comprehensive coverage according to the vehicle you are insuring. Some market reports have shown that recent rate increases have been attributed to the many added features included in today’s vehicles. Features such as on-board electronics and safety features such as rear-bumper cameras make it more costly to repair a damaged vehicle. Similarly, you can expect your rates to increase based on the replacement cost (value) of your vehicle.

Rate Changes Based on Location

Insurance companies may adjust their rates based on where you live. For example, those in highly populated urban areas may pay a higher premium compared to those in rural areas. This is due to increased traffic and likelihood for a collision. Certain areas also have higher rates of crime and vehicles may be more likely to be stolen, vandalized, etc. When using online tools to obtain a rate quote you will clearly notice rate fluctuations among different zip codes.

Driving Record

Insurance companies are likely to consider your recent history of traffic violations in calculating rates. They generally see those with multiple tickets or other driving infractions as being higher risk.

Credit Score

Statistics have shown that those with good credit are less likely to file an insurance claim. In some states, a driver’s credit standing is not permitted to be considered by insurers; however, it is permitted in Arizona.

Various Demographics

Insurers view statistical data when determining rates. For example, teenage drivers are more likely to drive in a risky manner and they have less experience driving. Young male drivers are among the most expensive to insure. You may notice as you reach the age of 25 that your premiums tend to decline.

Household Exclusion

Those residing with other family members should be aware of potential policy coverage limitations that apply to other members of your household. For example, parents with a teenage driver at home may pay a higher premium. Insurers recognize that family members are likely to borrow each other’s car. Arizona law allows insurers to limit their liability to state minimum amounts (15/30) for bodily injuries occurring when another driver is operating the vehicle. It may be possible to reduce the policy premium by specifically excluding another member of the household from policy coverage.  Consult with your insurance agent for details when applicable.

Impact of Comprehensive Loss Underwriting Exchange (C.L.U.E) on Cost

When shopping, keep in mind that insurers are likely to raise rates on those with an insurance claim in the last seven years. How do they make this determination? Insurers maintain a database to exchange information regarding those who have filed claims. If it seems that your rate quotes are high it may be attributed to this.

Sources of Auto Insurance

There are different sources where you can shop for and obtain auto insurance.

• Captive Agent: A captive insurance agent represents a single insurance carrier. Many of the largest carriers use them to market their policies.
• Independent Agent: Agents who are independent may offer policies from multiple carriers. They are able to shop on your behalf to find the most suitable and best-priced policy for your individual needs.
• Buying Direct: Typically this involves going to the insurance company site to compare rates and buy directly. Many consumers feel that not having a local agent is a drawback.

Benefits of Purchasing Insurance Through Independent Agents

Often, purchasing insurance through an independent agency gives you the “best of both worlds.” You have the local service and personal support from an agent, while still allowing you to minimize costs. For example, if your agent knows that a carrier they represent is raising their rates they may proactively identify other options for you. You will also still potentially have access to “multi-policy” car insurance discounts.

Agency for Automobile Insurance in Casa Grande

The Gebhardt Insurance Group recently received a “Best Customer Service” award. We are able to shop and compare policies from over 40 carriers to find you a great value. Our agency also provides insurance solutions including homeowners, life, commercial, and more. Contact our office today at (520) 836-3244.