According to an Associated Press article, Alabama is seeking to raise the minimum liability coverage on an auto policy up to $25,000 per person for bodily injury and $25,000 for property damage.
Arizona currently has $15,000 for bodily injury and $10,000 for property damage coverages - amounts that are woefully low. Consider a typical new car may cost $18,000 or so. Ten grand in PD coverage barely covers half of that amount.
Bodily Injury - covers the "other" person if you cause injury and are at-fault
Property Damage - covers damages to the "other" vehicle if you are at-fault
What that means is this - if you hit another car valued at $18,000 and cause property damage you are responsible for those damages. What if the other car is totaled and you only carry $10,000 PD on your policy? That leaves a gap of $8.,000. Do you have eight grand sitting in a dresser? Most of us don't.
I could understand how some would be concerned for those with high auto premiums having to pay even higher costs if the minimum requirement is raised.
However, for the vast majority of driver's the increase in premium would be nearly inconsequential. Sure, every increase in premium taps into an already tight budget. But fifteen thousand on BI and ten thousand in PD in today's economy is far short of what we really should carry on our policy.
Shouldn't it be our responsibility as vehicle owners to ensure we cover other people for the injuries and damages that are our fault?
Continue reading below. I have other articles explaining BI and PD in greater detail.
Thank you!
Arizona Car Insurance
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