Insurance 101

Purchasing insurance for your car, motorcycle or ATV is not only the law but also a task you should go into with a little bit of insurance knowledge. Our hope is to give you the tools to make the right decision for your individual needs and requirements.

Determining what company you choose to purchase your insurance from is the first step. Many people want the cheapest insurance possible. However, it is more important for you to get the right coverage rather than the cheapest insurance. What you should be concerned with are a combination of cost, coverage designed for your specific needs, customer service (can I reach my agent or company 24 hours a day), claims service and will your insurance company be there when you need them most.

We want you understand your coverage. That is why we try to examine and explain each of the coverage you currently have to make sure it fits your real needs. We have compiled a list of some of the coverage with an easy to understand description of these coverages; the more you are informed about your insurance needs, the smarter decision you can make.

Your Auto, Motorcycle, ATV insurance is required by law and by your lien holder on your vehicles. State law requires you to have both BI (bodily Injury – coverage if you are at fault for an accident and your cause injuries or death to others) and PD (property damage – coverage if you are at fault for an accident and cause damage to others property). Arizona requires BI coverage of $15,000/$30,000 and PD coverage of $10,000. We recommend that the PD coverage be at least $25,000, which usually only costs about $5.00 more every 6 months.

UM/UN (Uninsured and Underinsured coverage) is not legally required but helps cover you if you are involved in an accident where the other party is at fault but does not have any or enough coverage to pay for your medical injuries. Collision coverage pays for damage to your vehicle (subject to a deductible) and Comprehensive coverage pays for glass repairs/replacement, theft, and vandalism to your vehicle (subject to a deductible, except if you have full glass coverage for your auto glass)

Your Home, Condo or Landlord property is the largest purchase you will ever make in your lifetime. Our hope is to give you the tools to make the right decision for your individual needs and requirements. Be sure your property insurance policy includes enough coverage to replace your property if totally destroyed (replacement cost), enough liability coverage to protect your assets in case of a law suit judgment due to a liability claim ($300,000 minimum if you have a pool), enough insurance to cover your personal property (clothing, furniture, jewelry, electronics), and a deductible you can handle if you do file a claim (coinsurance). A list of all of your household possessions is a need to have. That would include description, model and serial numbers, when and how much you paid for it. We have created a simple spreadsheet for this process, available upon request.

As a Renter, your insurance needs are different than a property owner’s needs. When you rent an apartment, condo or home, you are not insuring the property. Your only concerns are for your personal property (clothing, furniture, jewelry, electronics), liability coverage ($100,000 required by most apartment complexes), and a deductible you can handle if you file a claim (“coinsurance”). Most apartments require you to name them as “an additional insured” on your policy. That way, they receive   a copy of your policy with any policy changes. A list of all of your household possessions is a need to have. That would include description, model and serial numbers, when and how much you paid for it. We have created a simple spreadsheet for this process, available upon request.

Hope this helps. Please let us know if you need additional information.

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