Arizona Car Insurance Laws

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Car insurance is legally required in almost every state, including Arizona. Every driver must carry a minimum amount of car insurance to meet Arizona laws. Without the minimum amount of insurance, a driver cannot register their vehicle or even get behind the wheel.

Arizona drivers shopping for car insurance should understand Arizona car insurance laws, requirements and what additional coverage options are available for more protection.

Car insurance laws in Arizona

In the state of Arizona, drivers are subject to certain car insurance laws. Arizona’s car insurance laws are similar to many other states and include:

  • Proof of insurance: In Arizona, all drivers are required to carry auto insurance and keep proof of insurance documentation in their vehicle at all times.
  • Proof of financial responsibility: Arizona drivers who do not want to purchase car insurance can choose to lodge a $1,000,000 bond with the Motor Vehicle Department of the Arizona Department of Transportation or make a $40,000 cash deposit.
  • Minimum insurance requirements: Every driver in Arizona must have at least 15/30/10 car insurance coverage, according to the Insurance Information Institute (III). Driving without the minimum required insurance is illegal and has steep consequences.
  • Failure to produce proof of insurance: Failing to provide sufficient proof of insurance or proof of financial responsibility by request of a law enforcement officer is a civil traffic violation.

Liability insurance in Arizona

Liability insurance is a requirement in Arizona. Every driver has to carry at least $15,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident and $10,000 in property damage liability coverage per accident.

The term ‘per person’ refers to one passenger in an accident. In Arizona, drivers must have at least $15,000 to cover one person’s injuries in a crash. The term ‘per accident’ refers to all passengers involved in a crash. Arizona drivers must have at least $30,000 to cover multiple passenger injuries in an accident and $10,000 to cover property damage resulting from an accident.

However, there is no guarantee that the minimum amount of coverage will offer enough protection in the event of an accident. If a driver causes a crash and their passengers’ injuries topped $100,000, they would have to pay the remaining amount out-of-pocket. Most insurance companies recommend that drivers purchase more coverage than legally required.

Is Arizona a no-fault state?

Arizona is not an at-fault or tort state. In most cases, the driver who causes an accident is responsible for compensating the other driver for their medical expenses. After an accident, the injured driver can file a claim with the other driver’s insurance company and get reimbursed for their losses.

Arizona is a comparative negligence state. If two drivers are both somewhat responsible for an accident, the insurance companies will assign a percentage to their fault. For example, if Driver A is 85% responsible for an accident, their insurance company would pay Driver B 85% of the total loss. Driver B’s insurance company would then make up the remaining 15%.

Penalties for driving without insurance in Arizona

Driving without adequate insurance coverage in Arizona is illegal and comes with serious consequences:

  • First offense: For a first offense, drivers will be fined $500. Their license and registration will be suspended for three months.
  • Second offense: For a second offense within three years, drivers will be fined a minimum of $750. Their license, registration and license plates will be suspended for six months.
  • Third offense: For three or more offenses within three years, drivers will be fined a minimum of $1,000. Their license, registration and license plates will be suspended for one year.

In addition to fines and license suspension, Arizona residents who are found to be driving without insurance are required to obtain an SR-22 certificate, which gets attached to their car insurance policy to prove that they carry the state’s minimum required insurance. SR-22s are available through car insurance companies that specialize in high-risk drivers.

Auto insurance coverage options in Arizona

There are a number of car insurance companies in Arizona. Search for reputable providers with good discounts, customer service and financial strength, then request price quotes from several different providers to compare rates and see which company offers the best rate for the amount of coverage needed.

In addition to minimum liability coverage, Arizona drivers should consider several other coverage options, including:

  • Collision: Collision coverage pays to repair vehicle damages after an accident.
  • Comprehensive: Comprehensive insurance covers the vehicle for damages not caused by an accident, like falling objects, flooding and theft.
  • Uninsured/underinsured motorist coverage: Uninsured/underinsured motorist coverage protects the insured in an accident if the other driver does not have insurance or does not have enough insurance to cover any losses they caused.
  • Roadside assistance: Roadside assistance will cover the cost of vehicle repairs or towing after a breakdown or minor accident.
  • Accident forgiveness: Some car insurance companies offer accident forgiveness, which means the insurance rate will not increase after a minor at-fault accident.

Frequently asked questions

What is the best car insurance company in Arizona?

Arizona drivers have a variety of options when it comes to car insurance. Before choosing a provider, it is important to shop around and compare rates. American Family, Geico, Allstate, The Hartford and State Farm may have some good options for drivers looking for coverage in Arizona, but everyone’s situation is different. Speak with a licensed insurance professional to help select the right coverage at the right price.

How much does car insurance cost in Arizona?

The average Arizona driver pays between $502 and $1587 for car insurance. For comparison, the United States national average rate is $1738 per year for full coverage insurance. However, some drivers could pay more or less than the statewide average based on their ZIP code, age, credit score, claims history, driving record and type of car they drive.

How can I lower my car insurance premium?

There are several ways that Arizona drivers can lower their car insurance premiums. First, make sure to take advantage of discounts. Most insurance companies offer savings opportunities for having an anti-theft system, being claims-free, taking a defensive driving course and bundling policies. Having a higher credit score and selecting a higher deductible can also help save money on insurance.

Written by
Elizabeth Rivelli
Insurance Contributor
Elizabeth has two years of experience writing for insurance domains such as, The Simple Dollar, and NextAdvisor, among others. In addition to auto insurance, Elizabeth regularly writes about home insurance, renters insurance and life insurance. She also covers industry trends and general insurance education.