Liability coverage pays for damage you cause to other people and their property. If you rear-end someone, your liability pays their car repair, their medical bills, and their rental. It does not pay for your car or your medical bills. Arizona requires minimum 25/50/15 — $25K bodily injury per person, $50K per accident, $15K property damage — under ARS §28-4009. Many Arizona insurance professionals recommend higher limits (e.g. $100K/$300K/$100K) given current vehicle and medical-care prices, but the right limit depends on your assets and risk tolerance — ask your agent. See AZ DIFI's auto insurance minimum-coverage guide for the regulator's plain-language summary.
Collision coverage pays to repair your own vehicle when you hit something — another car, a wall, a parking pole, a pothole that destroys your suspension. It applies regardless of fault. Has a deductible (typically $500-$1,500). If a not-at-fault accident happens and the other driver's insurance is paying, you usually skip your collision coverage and go through them. If they have no insurance, your collision steps in (or your UMPD if you have it).
Comprehensive coverage pays for non-collision damage: hail, theft, vandalism, falling objects, glass, fire, animal strikes (deer, dogs). Has its own deductible. In Arizona, most claims under comprehensive are hail (summer monsoons) and rock chips. Glass-only claims often have a $0 deductible if you carry full glass coverage.
Uninsured/Underinsured Motorist Property Damage (UMPD) is the coverage Arizona drivers most often skip and most need. About 1 in 10 Arizona drivers is uninsured — 10.6% per the 2023 Insurance Research Council report (via III). If one of them hits you, UMPD pays for your car repair without a deductible. UMPD is typically inexpensive on most policies and may also pay diminished value in some cases — coverage and pricing vary by carrier, so read your declarations page.
Rental reimbursement covers a rental car while yours is being repaired. Typical industry caps run $30-$70 per day for 30-45 days depending on carrier — see Progressive's consumer guide for representative limits. Critical to have if you only own one vehicle. If the accident wasn't your fault, the at-fault driver's liability pays for your rental — no deductible, no daily limit, but you have to ask for it. We coordinate the rental for you on either path.
What insurance does NOT cover. Routine maintenance, pre-existing damage, mechanical failure unrelated to the accident, custom modifications (unless declared and additional premium paid), personal items in the vehicle, and aftermarket equipment not listed on the policy. Diminished value is recoverable from the at-fault driver's liability insurance under Arizona property-damage law — see Oliver v. Henry, 227 Ariz. 514 (Ct. App. 2011). Most insurers don't pay DV unless you ask with documentation. We provide that documentation free with your repair — see which carriers we work with and how we help with deductibles. If an attorney is on your case, see our attorney coordination page.