Arizona Car Insurance Companies

When you begin the search for an insurance company, finding a rate you like is only the first step. You also need to take a little time to interview the company and make sure they’ll meet your needs.

In addition to reviewing the state standards to ensure that you’re at least carrying minimum coverage, you should also look into the financials of a company, make sure they’re licensed to operate in Arizona and ask a few other questions.

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Confirm Licensure

The State of Arizona requires all vehicles registered in the state to be insured by a company that’s licensed by the state. Most companies will list this information on their website or share it with you when you call.

Additionally, this information is readily available with comparison websites online. However, you should confirm the licensure of insurance company by visiting this website for a quick search.

Check the Financials

Any insurance company is only as good as their financial strength. You can get a free registration with companies like Moody’s to instantly review information on a company’s financial status.

Standard and Poors and A.M. Best also offer financial information on companies. Some companies also share this information directly on their websites for your convenience. Ideally, choose a company that has a rating of A or better to ensure that they’ll be there when you need them the most.

This will help you avoid companies that are on the verge of financial failure and may not be able to cover your claims in the event of an emergency. You can also go through the NAIC for accurate and complete information.

Avoid Fraud

A benefit of working with comparison sites is that most of the companies featured are reputable and stable, but you should still know how to spot a fraudulent company. When you visit the NAIC search engine, you can look at information regarding specific complaints and whether they’ve been settled.

You want to do business with a company that will be there when you need them, and that means that they’ll be willing to pay claims and provide you with support in disputes. The right company for you will have a history of positive dispute resolution and good reports from existing customers.

Insurance then Registration

The state requires all drivers to have financial responsibility, and there is no grace period after registering a car. You’re required to have insurance before the car is registered, so you should start your search for the right company before you head to the DMV or go buy your next car.

Be Aware of the “Household” Exclusion

Under this exclusion, the bodily injury liability coverage for household or family members are limited when they’re injured as the result of another driver’s error or negligence.

Even if consumers have private health insurance, they should still check for this exclusion to ensure that they have the proper coverage levels. Look closely for this feature and consider investing in additional coverage if needed.

The Law, Insurance Rates and Accidents

Insurance companies use several factors to determine rates, and one of them is your personal driving history. Once you have coverage, the company can increase your rates if you’re involved in an accident.

However, the state prevents them from raising rates for non-chargeable accidents. This means that if you did not cause or significantly contribute to the accident, then your rates cannot be raised.

Credit Matters

If you’re in the market for new insurance and your credit rating is low, you may want to take some time to bring up your scores before you start comparison shopping online.

In Arizona, insurers are allowed to look at credit scores when determining their rates. They also look at loss history on an individual or property to better determine the risk levels.

Insurance Cancellations

When applying for insurance quotes, you’ll be asked for some personal information. The insurance companies base your premiums on that information and data that they collect independently. They have up to 60 days to cancel the policy for any reason except location of insured, age, race, religion, color, gender, national origin or ancestry.

However, they can cancel a policy because they discover that an applicant misrepresented themselves or their driving history. It’s better to be honest and receive a higher premium than it is to take a chance on having a policy cancelled.

Once the policy has been in effect for 60 days, it may be cancelled for the following reasons:

• Non-payment of premium
• Fraudulent misrepresentation on the application
• Suspension or revocation of driving privileges
• The insured becomes permanently disabled and is unable to drive the motor vehicle safely
• Conviction of vehicular homicide or assault as the result of criminal negligence
• Driving while drunk or under the influence of drugs
• Leaving the scene of an accident
• Making false statements in a driver’s license application
• Convictions for reckless driving

Additionally, companies may choose not to renew a policy if the insured or a driving member of their household is involved in three or more at-fault accidents. In most of these cancellation scenarios, the offending party may be either the primary insured or any member of the household that is covered by the policy.

With the option to exclude the offending operator other than the named insured, the individual who is accused of these offenses may be legally dropped from the policy without cancelling coverage for the primary insured and the other members of the household.

Changing Rates

Individuals sometimes search for a new policy because their rates have been rising with every renewal. The most common cause for increasing rates is accidents or a poor driving record, but this isn’t the only reason.

If the company is facing large losses in the area, then they’ll raise the rates for all polices in that affected area. When looking at premiums, it’s important to remember that your rising rates may have more to do with the area you live in than with your own driving record. However, there are some steps you can take to reduce your premiums.

Ask About Discounts

Insurers offer discounts for several different reasons. Looking at discounts and making other changes can lead to lower rates and attractive monthly statements. Talk to your current company to see if there’s any way they can lower your rates.

Once you have their best offer, you can effectively compare it to other companies and see who is offering the best rates and coverage. Remember to ask about these changes and discounts when you speak with your company.

• Multiple policies, such as insuring both your home and car with the same company
• Multiple cars on one policy
• Good student discount
• Nonsmokers discount
• Passive restraint and safe car discounts
• Savings for cars with alarm systems and anti-theft devices like LoJack
• Safe driver for not having accidents or tickets in a number of years
• Safe driving classes
• Lower mileage cars
• Vehicles parked in garages or off-street at night
• Switch to a higher deductible

Some people also choose to save by lowering their collision and liability levels, but this is a riskier step. If you choose to reduce those limits, ensure that you still have enough liability to cover most new cars and to protect your personal assets in the event that you face a lawsuit.

Know Who’s Insured

In the state of Arizona, insurance protection goes with the car and extends to guest drivers who have your permission. This includes out-of-town guests and teenagers in the household. However, the insurance companies do have the right to exclude certain people in some circumstances. It’s wise to check with your agent to confirm any exclusions before you give a friend permission to drive your car.

As you compare different companies and search for the right one for your needs, keep this information in mind. While you may be focused on finding more attractive rates, you also need to consider the customer service ratings of a company, how easy it is to make payments and their financial stability.

Get your insurance choices lined up before you go to register a car so that you’ll be completely legal and ready to enjoy driving. Finally, use these tips to protect your rights as a consumer and to lower your premiums where possible.

Be sure to use the FREE comparison tool below to start your search for auto insurance today!