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NEW DRIVER’S GUIDE TO AUTO
INSURANCE
Important Questions and Answers About Auto Insurance
Why buy car insurance?
The law requires it.
Without it, you pay from your own pocket for injuries and property damage that
you cause to others.
The odds are, you will need it. The National Highway Loss Data Institute says:
o The risk of an accident per mile driven among 16 to 19 year olds is four
times the risk of older drivers.
o Risk is highest at age 16, with the crash rate per mile driven almost three
times as high as the risk among 18-19 year olds.
o Car accidents are the number one cause of death among 16-19 year olds.
o Life happens.
If you get into an accident…
Exchange information with the other driver involved. Important information you will
need includes:
The other driver’s name
The other driver’s address and phone number
The other driver’s drivers’ license number and state that issued the drivers’
license
The other driver’s insurance company name and policy number (look at their
insurance card)
If the police department or other law enforcement agency is present, take note of
that agency.
Consumer Protection Division
Arizona Department of Insurance
100 North 15
th
Avenue, Suite 102
Phoenix, Arizona 85007-2624
Phone: (602) 364-2499
Email: [email protected]
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When it’s time to shop for auto insurance…
Contact the Arizona Department of Insurance for an Auto Insurance Premium
Comparison and other auto insurance resources. You can call us at (602) 364-2499 or
(800) 325-2548 (in Arizona, but outside the Phoenix metropolitan area), or visit our
website at https://insurance.az.gov.
What if I choose not to get car insurance?
It might cost you more in the long run!
• You could be ticketed and fined between $500 and $1,000.
• Your vehicle registration and your drivers’ license could be suspended.
• Your vehicle could be impounded.
• If you cause an accident, you or the owner of the vehicle could be sued.
• When you finally want coverage, you’ll find most insurers charge higher rates for
previously uninsured drivers.
How much insurance do I need to drive?
If you just want to meet legal requirements, you need to buy the minimum liability
coverage allowed. If you cause or contribute to an accident, the most this coverage will
pay per accident is:
• $15,000 for medical expenses per person injured;
• $30,000 maximum for medical expenses of all those you injure in any one
accident; and
• $10,000 toward fixing the damage you cause to someone else’s vehicle or
personal property (building, fence, signs, etc.).
Be aware that minimum liability coverage may not be enough to repay someone you
injure, or whose property you damage, in an accident and you could be obligated to make
up the difference.
What’s missing?
The law does not require you to buy insurance to cover damage to or theft of your own
vehicle (however, if you owe money on a car loan, the bank or lienholder might require
that you have the vehicle insured). If you want coverage for your own vehicle for repairs
or replacement, you need to buy collision and comprehensive coverages. If your car is
stolen, or damaged in an accident that is your fault (or if the at-fault driver is uninsured),
this insurance coverage will help you repair or replace your vehicle.
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How can I lower the cost of auto insurance?
• Drive safely! Avoid tickets and accidents. Your driving record has a huge impact
on what you pay for insurance.
• Drive a safe vehicle. Sports cars and high profile vehicles may contribute to
increased injuries, and cost more to repair, which means they cost more to
insure.
• Get good grades! Many insurers offer a good student discount for a “B” or better
grade average.
• Ask your insurance representative about a higher deductible (if you buy
Comprehensive and Collision coverage). Your deductible is how much you pay
out of pocket for a claim for damage to your car.
• Ask about discounts for driver education classes.
• Shop around! There are lots of insurance companies and there’s a wide range in
what each charges for insurance.
• Don’t drink and drive.
• Avoid distractions like cell phones, eating or drinking, or noisy passengers.
What if I have a problem with my insurance company or insurance producer?
To ask insurance questions, request pamphlets, or file a complaint, contact the Arizona
Department of Insurance at:
2910 N. 44
th
Street, Suite 210
Phoenix, AZ 85018
Phone (Phoenix area): 602-364-2499
Toll free (outside of Phoenix area): 800-325-2548
Fax: 602-364-2505
Email: consumers@azinsurance.gov
Check out these websites for information on driving safety:
The National Safety Council’s Teen Driving page: http://www.nsc.org/learn/NSC-
Initiatives/Pages/teen-driving.aspx
The DriveitHOME
TM
initiative: http://driveithome.org/
I Care: http://www.thehumanityproject.com/icare/index.html
Persons with disabilities may request materials be presented in
an alternative format by contacting the
ADA Coordinator at (602) 364
-3100. Requests should be made as early as possible to allow time to
procure the materials in an alternative format.
