What Insurance Do You Need for Financed Vehicles in AZ?
If you’re buying a new car, it’s worth knowing the financed vehicle insurance requirement. While Arizona mandates liability coverage and property damage coverage, your lender may have additional requirements for comprehensive collision coverage. At Avondale Nissan, our finance experts help customers understand these requirements to ensure proper coverage.
Arizona State Insurance Minimums
Arizona drivers must maintain liability insurance with minimum coverage limits of $25,000 for one person sustaining bodily injury, $50,000 for two or more persons sustaining bodily injury, and $15,000 for property damage. This basic liability coverage protects others when you cause an accident, but does not cover damage to your own vehicle.
Lender Requirements for Financed Vehicles
When you finance a Nissan vehicle, your lender requires comprehensive coverage and collision coverage beyond Arizona state minimums. After all, your warranty covers Nissan parts and service, but it doesn’t help if you’ve been in an accident. Comprehensive coverage protects against theft, vandalism, weather damage, and other non-collision incidents. Collision coverage handles your Nissan repairs regardless of who caused the accident.
Auto loan agreements require you to carry these coverages until you repay your balance. Since your vehicle serves as collateral, lenders protect their investment by mandating full coverage insurance. If you drop required coverages before paying off your loan, the lender may purchase insurance on your behalf and add the cost to your monthly payment, which can be significantly more expensive.
Optional Coverage to Consider
Beyond the financed vehicle insurance requirement, consider GAP insurance to bridge the difference between your loan balance and your vehicle’s actual cash value after a total loss. GAP coverage pays the remaining balance of your car loan if you total the vehicle.
Higher liability limits than Arizona’s minimums also provide better financial protection. Since the average cost of a new vehicle is $48,334, the minimum required coverage of $15,000 isn’t nearly enough to adequately cover damage to a newer vehicle in an at-fault accident.
Secure Proper Coverage for Your Financed Nissan in Avondale Today
Protect your investment and meet all insurance requirements with the right coverage for your financed Nissan vehicle. Our experienced team at Avondale Nissan works with trusted insurance partners to help you find comprehensive coverage that satisfies both Arizona state law and lender requirements. Contact us today to discuss financing options and insurance recommendations.