Car insurance isn’t something the average person spends much time considering unless they need to file a claim. You probably purchased your policy years ago and haven’t really thought about it since then.
Many people can’t even say what amount of coverage they have because they simply pay the statement when their policy comes up for renewal without reviewing or looking over their paperwork. You could potentially have much less protection than you hope for or expect.
You could get into a car crash that causes massive injuries to someone else and only realize afterward that your insurance doesn’t cover the full cost. What happens if you don’t have enough insurance after a crash?
The other driver could hold you accountable for their losses
If you are the at-fault driver in a collision, your insurance policy has to cover the expenses incurred by the other parties involved due to their injuries or property damage. If you only purchased the mandatory amount of coverage required by Arizona law, you need to have just $15,000 worth of property damage liability coverage.
Although that amount could help someone repair a vehicle or buy an older, used vehicle, it will likely leave you with a big coverage gap if someone has a newer vehicle and the crash turned that vehicle into a total loss.
The same thing could happen with medical liability coverage. Arizona only requires that you carry $25,000 worth of coverage to protect you if you hurt one person in a crash. That amount doubles when there are two or more people who get hurt. Even $50,000 worth of coverage could be less than you need if you cause severe injuries to one person or moderate injuries to several people in another vehicle.
Your insurance may not protect you from the actions of other drivers
The mandatory coverage required by Arizona law is only protection from your personal liability if you cause a crash. Liability coverage will not protect you from losses caused by the other driver. If they don’t have insurance or if they have very low levels of insurance, you could end up with expenses their insurance doesn’t cover.
Adding comprehensive coverage, collision coverage or uninsured and underinsured motorist protection can give you more protection even if someone else causes the crash that hurts you. Occasionally reviewing and updating your motor vehicle liability insurance policy will help protect yourself if you ever do get into a crash.