How Arizona Auto Insurance Liability Coverage Works

Arizona auto insurance liability coverage is put in place to compensate the occupants of the other vehicle when an at-fault accident occurs. It includes a bodily injury and property damage component. Insurance coverage is available to protect the policyholder and his or her passengers; a medical payments plan will cover bodily injuries and physical damage coverage (collision and comprehensive) will pay for damages caused to the vehicle itself.

The liability coverage follows the car, not the policyholder. A vehicle owner who lends out his or her vehicle is also lending out his or her insurance coverage. The borrower will likely be covered under the owner’s insurance coverage, subject to the policy exclusions. If a vehicle owner is pulling a trailer, the liability coverage will also extend to it.

The bodily injury part of a liability policy pays for medical bills and rehabilitation expenses relating to the accident. It also pays out a funeral benefit if the accident causes one or more fatalities. The minimum level of this type of insurance coverage required by law is $15,000 to pay for injuries and sustained by a single accident victim and $30,000 to pay for all injuries and damages stemming from the same accident.

Property damage liability coverage is used to pay for the cost of repairs to other people’s property following an accident. It pays for repairs to the other driver’s vehicle, as well as public property. The policy covers items like sign posts, light stands,  fire hydrants, mail boxes, fences, sidewalks and buildings.