Most every driver you’ve ever crossed paths with carries a car insurance policy. But did you know that it’s not a written law that you must buy auto insurance in Arizona? We ain’t lying. In fact, the only legal requirement for local car owners is to have some form of “financial responsibility.” This vague yet oddly technical phrasing is the loophole that some residents of The Great Canyon State have taken advantage of when researching alternatives to car insurance.
But what does that mean: Financial responsibility? In Arizona, proof of financial responsibility asserts that you have the funds to pay for an accident. This proof can take one of two forms:
- Standard liability auto insurance (minimum $15,000 in bodily injury & $10,000 in property damage liability); or
- A certificate of deposit, paid to the AZ State Treasurer, in the amount of $40,000 (per Arizona 28-4084 law).
That’s it. For a measly $40k, you can drive around Phoenix without being tethered to a big-name insurance company! Take that, Flo.
Car Insurance or Certificate of Deposit?
We understand if you’ve had past frustrations with your auto insurer—we have, too. However poor your experiences have been, it’s imperative you suck up your pride and make the right choice. Auto insurance is a far better proposition for most drivers when approached with the alternative of paying a 5-digit lumpsum. Even with the minimum amount of vehicle insurance and a high-deductible policy, it would probably take you 10 years to match the payment for a certificate of deposit.
But don’t tell Flo we sided with her.
Save on Insurance with Honda Sensing
Have dollars and cents on your mind? We don’t blame you! Car insurance can be a doozy to both your brain cells and wallet. To get the best deal on your auto insurance policy in Arizona, consider choosing a vehicle with the newest safety features, like the 2018 Honda Accord. Featuring the full Honda Sensing suite, the new Accord can cut out portions of your auto insurance premium without you having to lift an extra finger.
To learn more about how a new Honda in Phoenix can lower your insurance payments, reach out to one of our Valley Honda Dealers. With dealerships throughout the entire Phoenix area, including Tempe and Scottsdale, we’re always available to help you choose correctly. We’ve even got fantastic Phoenix Honda special offers available, just in time for summer. Ka-ching!
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