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Arizona Car Insurance Requirements

Arizona Minimum Car Insurance Requirements

Arizona required drivers to show proof of insurance before registering a vehicle. This means they must prove to the state that they carry the mandatory minimum liability insurance coverage. The required liability insurance coverage for the state of Arizona is as follows:

  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident
  • $15,000 property damage per accident

Comparative Fault in Arizona

The state of Arizona is known as a comparative fault state. Comparative fault, also sometimes referred to as comparative negligence, is a way of assigning fault to a driver after an accident. Arizona is a “pure” comparative fault state which means that the responsibility for an accident can be shared by both drivers. It is typically split up by percentages. For example, if you are found to be 25% at fault for an accident and the other driver is 75%, your insurance would be responsible for 25% of the damage. The other party’s insurance would have to pick up the other 75%.

Arizona Liability Coverage

As discussed previously, liability insurance is required for every driver to carry in the state of Arizona. Liability coverage pays for damages and injuries to the other driver when you are at fault for an accident. It never covers your own expenses or repairs. Liability insurance is divided into two categories: bodily injury and property damage coverage.

Car Insurance Limits in Arizona

A state liability insurance limit is the lowest amount of coverage you can legally drive with. When you have such a policy, the amount is also the maximum for how much your insurance company will cover in an accident. Arizona has a limit of 25/50/25, as outlined in the first section. These numbers refer to the three aspects of liability insurance coverage.

  • Bodily injury per person is the maximum amount of money your insurance company will pay in medical pills for one person injured in an accident you caused.
  • Bodily injury per accident refers to the amount that your insurance company will pay up to for all people injured in an accident.
  • Property damage per accident is the total amount of money your insurer will cover for the damages you cause to another person’s property.

Is Arizona’s Mandatory Insurance Minimums Enough Coverage?

The state of Arizona has set pretty low liability insurance coverage minimums. Medical costs can get very expensive. If you cause $30,000 in bodily harm to the other driver, you will still be on the hook for $5,000 when you choose to only carry the state-mandated liability coverage. Not to mention that for property damage amounts, if you total a person’s vehicle, a new car can easily exceed $15,000. Coverage can disappear very quickly if you only carry the minimum amounts as a driver in Arizona. It is always recommended you purchase more liability insurance than what is required. You should even consider policy add-ons to expand coverage.

Driving Without Proof of Insurance in Arizona

Failing to maintain the proper amount of liability insurance in the state of Arizona can come with some serious penalties, including losing your driving privileges. The chart below is what you could be facing should you choose to forego liability insurance:

Consequences
1st Offense
2nd Offense
3rd Offense
Fine
$500
$750
$1,000
License Suspension
3 months
6 months
1 year
SR22 Requirement
2 years
2 years
2 years

You could have harsher penalties thrown on you should be found without insurance after causing an accident.

Other Types of Car Insurance in Arizona

While Arizona law only mandates drivers to carry liability insurance, there are a wide variety of other types of insurance you can add to policy to have stronger coverage. Outlined below are some common policy add-ons:

  • Comprehensive: This coverage pays for damage to your vehicle when it is not in use. Some instances it covers include theft and extreme weather.
  • Collision: This covers your vehicle when it is damaged in an accident, no matter who was at fault. When collision and comprehensive are bought together, it is referred to as "full coverage."
  • Medical Payments: Pays for medical and funeral expenses for either you or your passenger(s) after an accident.
  • Roadside Assistance: This coverage helps in the event that your car breaks down while you are driving. It offers assistance with things such as dead batteries and flat tires.
  • Uninsured Motorist Coverage: Covers you in the case that you end up in an accident with someone who does not cover any liability insurance. Despite insurance being required by law in most states, many drives hit the road without any coverage.

Arizona Department of Transportation (ADOT) Code

The Arizona Department of Transportation (ADOT) has special codes based on insurance companies, and the level of coverage drivers choose. They assign these codes to drivers to indicate what kind of insurance coverage they carry. The code can be found on your insurance card, or you can reach out to your insurance company.

Diminished Value State

The state of Arizona is a diminished value state. Being a diminished value state means that Arizona drivers have the opportunity to recover diminished value from the at-fault driver's insurance company. Even if your car has been fully repaired following an accident, it still has lost some of its value. Due to this, diminished value allows you to regain some of the losses you may experience if you go to sell your car.

Arizona is one of 15 states which offer this diminished value policy. In order to file such a claim in the state of Arizona, you must meet these requirements:

  • You were not the at-fault party in the accident
  • Have a clear record of the accident, including photos and receipts
  • It has been less than 2 years since the accident
  • The state does not have uninsured motorist coverage for these claims

Car Insurance is Important For Any Arizona Driver

You can never anticipate an accident, but you can try to be prepared for one. Carrying the proper amount of liability insurance will help you stay protected should you find yourself in an accident. The cost of one collision can get very pricey, very fast. For moments like those, you are going to want to have someone in your corner. With Arizona's low liability requirements, you especially should have coverage beyond what is mandated in order to stay fully covered.

*This product may not be available in every state, please call an agent for more information.

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