If you are a driver in Arizona (or anywhere for that matter), you know how complicated and confusing it can be to file a car accident claim, switch car insurance companies or simply add a person on to your policy. To help make things easier when dealing with your auto insurance company, we have listed some helpful tips for Arizona car insurance, customers below. Understanding these items can not only save you a lot of time and money on your Arizona auto insurance, but it will also help you be better prepared in the event of a car accident.
1. How your Arizona car insurance company determines your car's value after it has been declared a "total loss."
When totaling your car, your insurance company's goal is to help you find a new car within the same market. To do this, car insurance companies use three different methods for determining the value of the car declared a total loss, such as:
If the car insurance company is unable to find a car from within your area, they may have to find a replacement car outside your zip code, which can dramatically affect your car's true value. For instance, if you reside in a big city within Arizona, such as Phoenix, Flagstaff, or Tucson, then the cost of replacing your car will likely be more expensive then if you lived in a suburb or more rural part of Arizona.
2. When switching car insurance companies, you must cancel your insurance policy first.
Though it is possible to cancel your coverage at anytime, it is important to note that many insurance companies require a written statement, including the date of termination, in order to officially close your car insurance policy. If you do not do this, and you receive and ignore the next bill, your policy will be canceled automatically by the insurance agency for delinquency of payment. The downside to this automatic cancellation is that it will show up on your credit record, which could potentially impact your credit score!
The safest thing to do when switching car insurance companies is to call your insurance company and let them know that you are canceling your policy. The company will send you a cancellation request that needs to be filled out and sent back in.
3. Adding a teen to your car insurance policy.
Most insurance companies do not require you to add your teen to your car insurance policy when they are a certain age, just when they receive their license. If you are in a high-risk pool, you may be required to add them when they receive their driver's permit. If you forget to add your licensed teen, and they are involved in a car accident, they will be covered, but your insurance company may charge you back premiums from the date your teen received a license.
In the state of Arizona, teens between the ages of 16 and 18 may apply for a Class G (Graduated) license. To do this, the teen must take and pass a permit test, and have it for at least 5 months before taking the actual license test. Arizona teens must also complete driver's training, either through an approved third-party organization or through your guardian who must verify you completed at least 25 hours of behind-the-wheel training (including 5 hours at night). The permit allows that the driver may have one, non-class G licensed driver, in the passenger seat. With the Class G license, the driver is allowed to drive with anyone, at any time (not including after curfew depending on the city). To find out more about Arizona teen driving laws, visit the Arizona DMV.
4. Paying in installments may increase your car insurance.
"Fractional premium" fees are usually charged when you divide your car insurance annual premium into installments. Six month, quarterly or monthly are the typical breakdowns for most insurance companies. Generally, the more you break down your installments, the higher the administrative/fractional premium fee. Always ask when applying for a new car insurance policy, and see exactly what the fees are for each payment you break down. Make sure to also ask your insurance provider if they offer an alternative way to make payments, such as Automatic Clearing House (ACH) processing, which withdrawals the funds right from your checking account. This may help eliminate processing fees while helping you stick to your budget.
5. Personal property in your car is not covered by your auto insurance.
Stolen or damaged items from within your car are not covered by your auto insurance policy. Most policies will only cover smaller and less expensive items like CDs, but if you carry more expensive things, you will want to consider adding a rider to your home insurance policy. Keeping photos or video of your items is also a good idea. If something is stolen from your car, you may have to file a claim on your home insurance if you do not have a rider in place.
Even though most states typically have similar laws in place for car insurance, they do not typically have similar car insurance rates. That is because Arizona car insurance rates are influenced by Arizona's geographic location and its' state laws. With that being said, it is always a good idea to shop around and compare the rates of various car insurance companies. To assist you in the processes Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the cheapest car insurance coverage for your budget.
6. Paying for someone else's bad driving.
If you loan your car to someone and they end up crashing it, you will have to file a claim with your car insurance company. As a result, you will have to pay your deductible (or any that apply) and your rates could potentially increase your car insurance rate. If your car is taken without permission, you are typically not held liable. If the driver is uninsured and causes damages exceeding your policy limit, the injured party may come after you for medical or property-damage expenses and not your friend.
7. Arizona allows you to de-insure vehicles that are not in use.
In Arizona, it is not necessary to insure vehicles that are not being used. If you have vehicles put away in storage or that are being restored, there is no need to have these insured. The vehicle registration must not be under insurance suspension of you'd like to keep the registration current. To obtain permission not to insure your out-of-use vehicle, or to de-insure the vehicle, you can apply for permission online at the Arizona DMV website.