The Hidden Costs of Car Accidents: What Insurance Really Covers (and What It Doesn’t)

Even a minor fender-bender can leave Arizona drivers dealing with more than vehicle repairs. Between medical bills, lost wages, and car rentals, the true cost of an accident often goes far beyond the deductible.

​Here’s what your policy really covers — and where most people get caught off guard.

1. Liability vs. Full Coverage: Know the Difference

Liability insurance pays for damage you cause to others, not your own vehicle.
• Property damage liability: Covers other cars or property.
• Bodily injury liability: Covers injuries to other people.

If you only carry liability and get into an accident, your own repairs and injuries are on you.

2. Medical Payments (MedPay) and PIP

Medical coverage options vary by state. In Arizona, MedPay can help cover medical bills for you and your passengers — regardless of who’s at fault.
It can cover:
• Ambulance rides
• Emergency treatment
• Dental work from accident injuries

It’s inexpensive and can save you thousands out of pocket.

3. Uninsured and Underinsured Motorist Coverage

About 1 in 8 Arizona drivers doesn’t have insurance. If one hits you, uninsured motorist coverage pays for your injuries and repairs.

Without it, you could be stuck footing the bill — even if you weren’t at fault.

4. Rental Reimbursement and Towing

After an accident, the last thing you want is to be stranded or without transportation.
• Rental reimbursement helps pay for a rental while your car is repaired.
• Towing and labor coverage ensures you’re never stuck roadside without help.

5. What You Can Do Now
• Review your policy annually.
• Add optional coverages like MedPay or uninsured motorist.
• Ask about increasing your liability limits — Arizona’s minimums often aren’t enough.

Bottom Line:
Auto insurance isn’t just about fixing your car — it’s about protecting your finances, your family, and your peace of mind. A few simple coverage tweaks can make all the difference when life hits unexpectedly.