Is Your Car Insurance Coverage Enough to Protect You?

Did you know the average American will get into three to four car accidents in their lifetime

You might feel confident that you’re adequately covered since you have full coverage car insurance. The reality? Many people contact their auto insurance company only to realize that the “full coverage” they thought they had can still expose them to runaway medical bills, lost wages, or even the expenses of another party.

Before the odds catch up to you, you should know if you are covered and how best to choose a policy that will protect you when it matters most.

Your Full Coverage Car Insurance May Not Be Enough

The economic cost of motor vehicle crashes is on an upward climb. In 2022, the total in the U.S. exceeded $470 billion a year, representing a 60% increase since 2010. 

According to a new report from the Advocates of Highway and Auto Safety, car crashes cost the state of Arizona nearly $6 billion each year. That figure accounts for medical costs, property damage, and missed productivity.

Do you already have auto insurance? Is what you currently have enough to protect you and your loved ones if and when an auto accident occurs?

Tips for Analyzing Your Policy or Buying New Insurance

Even though car insurance companies are seeing record profits, they are only paying 54% of those costs, leaving the rest up to injury victims, healthcare providers, and taxpayers. Will your auto insurance cover all your damages following an accident? Here are 10 tips to help you analyze your current policy or buy a new one. 

  • Is Your State N0-Fault or At-Fault (Tort)?

Knowing whether your state is no-fault or at-fault helps you understand who’s responsible for paying in the event of a car accident. Arizona is an “at-fault” or “tort” state, which means whoever causes the car accident is liable for paying the property damages and injuries that are incurred because of the crash. 

  • Check Your Liability Limits

While the minimums in your policy might seem like a lot of money, it can quickly vanish. Arizona requires all drivers to carry liability insurance, which pays for others’ expenses if you cause an accident. Many insurance experts suggest beefing up liability limits to at least $100,000 for injuries caused to one person, $300,000 for two or more, and $50,000 for damage to the other car. Arizona drivers can even file lawsuits to seek compensation regardless of the severity of the accident. 

  • Is Medical Payment Coverage needed?

There is no requirement that you carry medical payment coverage on your policy. However, the value of medical payment coverage is that it pays for medical bills you or your passengers incur when injured in your vehicle, by a doctor or healthcare provider of your choice. This allows for chiropractic and other non-traditional treatment that are not covered by health insurance.

  • Look Hard at Uninsured/Underinsured Benefits

About one in eight drivers across America is driving uninsured. Even though the law in Arizona requires all motorists to carry liability insurance, not all will do so.  If you are in an accident with an uninsured/underinsured driver, you may need much more coverage than the minimums available in your insurance policy. Having these extra benefits can also protect you in the event you’re in an accident with someone who does not have liability coverage on their vehicle.

  • Review the Extras Comprehensive and Collision

If you have adequate levels of liability and underinsured/uninsured benefits, then decide if the annual cost of comprehensive or collision makes sense, given the value of your car. Purchasing collision and comprehensive insurance can cover damage to your vehicle, regardless of who was at fault. 

  • Research Your Insurance Company

If you get into an accident and have to file a claim, will your insurance company be prompt and helpful? What is their financial rating? Check with the Arizona State Department of Insurance to access financial ratings, and use websites like Consumer Reports or the Better Business Bureau to investigate a company’s customer service record.

  • Get It in Writing

Before you sign any policy, read it through thoroughly. Request a detailed breakdown of all charges and make sure you are paying exactly what the insurance company has quoted. It may also be helpful to have your agent walk you through the process of what happens in an accident, and how they determine who was at fault. Arizona uses a pure comparative negligence system, meaning you can collect damages proportionate to your fault in causing the crash. 

  • Get Accident Forgiveness

Ask the insurance company if they offer accident forgiveness. Under a plan that includes this coverage, your rates won’t go up after your first accident.

  • Receive All Possible Discounts

Ask the insurance company for a complete overview of every possible discount to determine your eligibility. 

  • Finally, Shop Often

The insurance company you purchased from 10 years ago may not still be your best bet. You should compare and contrast new companies every three years and after a major life change, such as a marriage, a child turning 16, or a move to a new city.

Injured in an Accident? We Can Help

If you or a loved one have been injured in a car accident and you wish to discuss the specifics of your case in a free consultation with an experienced Tucson personal injury lawyer, please contact us today.