Arizona is a “tort” state. That means that in this state, you’re responsible for purchasing liability insurance, not no-fault insurance. There are three main types of liability insurance:

• Bodily Injury: With bodily injury liability insurance, you are protecting other people you might hurt in an accident. This does not cover your medical costs, but does account for medical costs, lost wages, and pain and suffering for anyone else involved in an accident you caused.

• Property Damage: Property damage liability insurance is like bodily injury liability insurance for your car. It also covers any other property (houses, road signs, light posts, etc.) that you damage in an accident.

• Uninsured Motorist: In Arizona, you aren’t required to purchase uninsured motorist coverage, but it is usually a good idea. This insurance covers your bills in case the other driver was illegally driving without insurance. Should that be the case, if you don’t have uninsured motorist insurance, you can sue the other person, but it might be a long time before you see the money, if ever. If you carry the insurance, your insurance company covers the costs and goes after the other person for repayment – you don’t have to worry about a thing.