Auto Liability Limits

Arizona State Minimum Changes?


Today, Governor Doug Ducey vetoed House bill 2254 which the Arizona legislature had passed and placed on his desk to be signed. The bill would have increased the state minimum auto liability limits from the current limits of $15,000/$30,000/$10,000 to $25,000/$50,000/$25,000. Governor Ducey said the reason he was unwilling to sign the bill was that he was concerned about the increase in premiums. The financial burden it might place on some people with regards to their auto insurance will be interesting.

What does this mean to you?

Insurance Professionals of Arizona recommends insureds carry a minimum of $100,000/$300,000/$100,000 on their liability limits. The first number is for bodily injury per person. The second number is for bodily injury per accident, or a bodily injury aggregate. The third number is for property damage. As you can imagine, $15/$30/$10 is a low limit and doesn’t go very far when someone is injured.

We would support the increase in limits because the cost to increase liability is usually not a significant amount and to have more liability not only protects everyone around you that you may injure in an auto accident, it also protects you as the driver, protects your assets, and protects you against lawsuits. Unfortunately, too many agents are willing to write policies with state minimum limits which is why increasing the limits would be a good chance. Therefore, this is long overdue. Many other states already require higher limits.

As the bill did not pass and liability limits in Arizona will remain low. We strongly recommend you review your under-insured and uninsured motorist coverage’s on your auto policy. These limits should also be a minimum of $100,000/$300,000 and it’s best to have even higher. These coverages protect you if the other driver has no insurance or does not have enough insurance to cover the damages they may cause to you if they are at fault.

Drive safe, wear your seat belt and stay off your phone. Be a defensive driver.

If you have questions, please feel free to contact us. We are here to help.

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