Posts

It is estimated that in the United States alone, over 2.35 million people are injured and approximately 37,000 people are killed in vehicle crashes each year. With popular and growing states such as Arizona, Colorado and California seeing above average crash statistics, it becomes even more imperative for drivers to understand their state’s automobile insurance laws.

Minimum Insurance Requirements

Arizona, Colorado and California all function under a traditional “tort” or “fault” automobile insurance model. This means that drivers who are involved in a vehicle accident in which they sustained injuries, or property damage, may: file a claim with their own automobile insurance company, file a claim with the at-fault driver’s automobile insurance company, or file a personal injury lawsuit in court seeking damages from the at-fault driver.

Although automobile drivers from each state must legally carry automobile insurance on their vehicles at all times, it becomes even more important if they have been involved in an accident. Automobile insurance is extremely important because it protects a person from extreme financial loss due to an accident.

Arizona

Under Arizona law, drivers must carry liability insurance with at least the following amounts of coverage:

• $15,000 per person for bodily injury or death
• $30,000 per accident for two or more persons’ injuries or death, and
• $10,000 for property damage

Colorado

For motor vehicles, Colorado law requires the following minimum amount of liability insurance:

• $25,000 per person for bodily injury
• $50,000 per accident for two or more persons’ injuries or death, and
• $15,000 per accident for property damage

California

Under California law, the minimum liability insurance requirements for private passenger vehicles are:

• $15,000 per person for bodily injury or death
• $30,000 per accident for two or more persons’ injuries or death, and
• $5,000 for property damage

Using California as an example, the three amounts are known as split limits, and are generally broken down in the following fashion: 15/30/5. These numbers indicate the maximum amount that your carrier will pay out for each category. The first amount for bodily injury or death liability covers costs if you are involved in an accident in which you are considered at fault and must pay an individual victim’s medical bills, lost wages and pain and suffering damages. The second amount for bodily injury or death liability is to cover the costs for all people involved in the accident, and the third amount is for the damage that you have caused to someone’s property.