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 at least the minimum amount of insurance, a driver cannot register their vehicle or even get behind the wheel.
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 could choose to prove financial responsibility with a $40,000 deposit, as long as they have a certificate from the Arizona Office of Treasurer validating the deposit.
- Minimum insurance requirements: Every driver in Arizona must have at least 25/50/15 coverage to align with the state’s minimum requirements, in accordance with Arizona Department of Transportation (AZDOT) regulation. 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 $25,000 in bodily injury liability coverage per person, $50,000 in bodily injury liability coverage per accident and $15,000 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 $25,000 to cover one person’s injuries in an accident. The term ‘per accident’ refers to all passengers involved in a collision. Arizona drivers must have at least $50,000 to cover multiple passenger injuries in an accident and at least $15,000 to cover property damage resulting from an accident.
However, there is no guarantee that the minimum amount of coverage will offer enough financial protection in the event of an accident. If a driver causes an accident 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 a no-fault state. Rather, it is an at-fault or tort state. This means that a driver who causes an accident in Arizona is responsible for compensating the other driver for their medical expenses and property damage. After an accident, the injured driver can file a claim with the other driver’s insurance company and get reimbursed for their losses if it is determined that the other driver is at fault.
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 guilty of driving without insurance may be required to obtain an SR-22 certificate once their license is reinstated, which gets attached to their car insurance policy to prove that they are in compliance with the state’s minimum requirements or financial responsibility laws. SR-22 filings 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 coverage 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?
On average, full coverage car insurance costs $1,547 per year for Arizona drivers. For comparison, the U.S. national average rate is $1,674 per year for full coverage insurance. However, some drivers could pay more or less than the statewide average based on their state, 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.
How much car insurance do I need in Arizona?
While drivers in Arizona are required to maintain certain levels of liability insurance (25/50/15), this will likely not be adequate financial protection for most drivers in the event of a serious at-fault accident. Insurance professionals recommend that drivers assess the total value of their assets that could be at risk in order to determine adequate levels of coverage.