By: Megan Kossow

The state of Arizona is set to increase the minimum insurance liability limits- EFFECTIVE JULY 1ST 2020!

As you may or may not know, on  May 27th, 2019 Senate Bill 1087 was passed by Arizona legislature. This bill states that the minimum liability limits in the state of Arizona will increase from the current minimum of $15,000/$30,000/$10,000 to $25,000/$50,000/$15,000. If you're thinking "first of all, what are those numbers? And second, this is just a way for insurance companies to get me to pay them more", you may not be alone. Alas, we are here to explain what exactly those amounts cover and why this bill is actually a GOOD thing.

Now, if the numbers above do not make sense to you, we are here to explain them.

Let's break down the meaning of these amounts. The 15/30 or 25/50 refers to the amount of money your insurance company will pay to the party that you caused bodily injury to. If you have the minimum limits, they would currently pay a maximum $15,000 for each individual's medical bills and a maximum $30,000 per occurrence for medical bills, regardless of how many people are in the accident. Once this new bill passes they will pay $25,000 per individual, $50,000 per occurrence. The last of the three numbers refers to the amount your insurance company will pay to the party that you caused property damage to. If you have the minimum limits this means they would pay a total of $10,000 to the party for their property damage. With the new increased limit that amount goes up to $15,000. 

Okay, so now that we've just poured all this information into your noggin, DO NOT worry if you're still wondering how this is going to affect you.

In short, your liability limits will increase. This could mean a slight increase to your insurance bill each month. We know no one wants to pay MORE for their insurance. But by this bill passing, it means that you will now have more coverage. And trust us, the more coverage the better! 

In the event of an accident the last thing you want is to be UNDERinsured. Let's say you have the state minimum liability limits and you get into an accident (knock on wood that doesn't happen) and the bodily injury you cause is $25,000, that's $10,000 more than the $15,000 limit you have. Your insurance company will pay the person you hurt $15,000 and the rest is up to you. This means that if you are unable to pay that $10,000 out of pocket, you are likely looking at a lawsuit. 

Now, let's say that you get into an accident that does not result in any bodily injury (amazing!) but you hit a car and that damage is worth $15,000, that's $5,000 more than your current limit of $10,000. Well, like we said before, that extra $5,000 would be up to you to pay out of your own pocket. So, wouldn't you want higher limits to protect yourself from potential HUGE bills in the future?

When this bill takes effect you may see an increase in your insurance bill. This is the time that you will want to contact your insurance agent to discuss possibly re-writing your policy with a different insurance carrier. If you don't have an insurance agent, we can take on that responsibility! The awesome thing about RIGHTSURE is that we work with over 40 companies, so when this bill takes effect and you see an increase in your bill that you cannot afford, we can quote you with one of our many carriers and find you a much better rate! Keep us in mind when this bill takes effect on July 1st, 2020.

Or give yourself an online quote NOW in just 90 seconds via our RightRater platform! It never hurts to compare your rates. Get a quote today!

Give one of our knowledgeable agents a call if you have any questions regarding this new bill or your insurance policy in general.

About RIGHTSURE
Headquartered in Tucson, Arizona, RIGHTSURE is an Insurance Technology firm leveraging cutting edge products with Artificial Intelligence and Insur-tech relationships to help families and businesses in 42 states. By using a unique, client-centered approach, combined with superior technology, RIGHTSURE presents clients with a wide range of Insurance options and a seamless purchasing process. To learn more, visit https://www.rightsure.com or call 520-917-5295.