DID YOU KNOW that the AZ auto insurance coverage limits changed on July 1, 2020?
The law that establishes the minimum amount of liability insurance coverage that drivers can buy has changed. Starting July 1, 2020, the minimum amount of liability coverage that insurance companies can provide when issuing or renewing an auto insurance policy is increasing. Prior to 7/1/20, the minimum limits were:
- $15,000 for one person sustaining bodily injury or death in an accident,
- $30,000 for two or more persons sustaining bodily injury or death in an accident, and
- $10,000 for damage to others' property.
This is commonly referred to as 15/30/10.
The NEW Arizona minimum limits for auto insurance policies that was effective 7/1/20:
- $25,000 for one person sustaining bodily injury or death in an accident,
- $50,000 for two or more persons sustaining bodily injury or death in an accident, and
- $15,000 for damage to others’ property,
All new auto insurance policies issued on or after July 1, 2020 must be issued at limits of no less than 25/50/15. All auto insurance policies renewing on or after July 1, 2020 that have the 15/30/10 limits will automatically be adjusted to the higher limits of 25/50/15.
If your current policy limits are below the new limits, your renewal premiums will likely increase to correspond to the increase in coverage. If your policy renews in May or June, you may retain the old 15/30/10 minimum limits until your next renewal, unless you choose to change your coverage's sooner.
If you have uninsured and/or underinsured coverage's on your policy at the minimum 15/30 limits, your insurer will automatically increase these coverage's to match the new minimum 25/50 limits and adjust your premiums accordingly. You can choose to change your coverage's at any time, but this is the new minimum amount of uninsured and underinsured coverage you can select on policies purchased or renewed on or after July 1, 2020.
If this change is affecting you or if you would just like me to review your policies please let me know. I am your local Chandler insurance broker and can offer affordable insurance quote options for your auto insurance, home insurance, renters insurance and more.
For more information about financial responsibility requirements, visit: https://azdot.gov/motor-vehicles/faq-motor-vehicle-division/vehicle-services-faq/mandatory-insurance-faq
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