Auto Insurance In Arizona: What You Need To Know

Arizona requires that every motor vehicle on the road be covered by a car insurance policy that meets certain minimum requirements. Drivers must keep proof of their insurance, either with a physical or electronic copy of an insurance ID card, with them at all times while driving. The state requires a minimum coverage limit for each of these.

Minimum insurance requirements

Arizona requires that every motor vehicle on the road be covered by a car insurance policy that meets certain minimum requirements. This is to ensure that Arizona residents are financially protected from damages resulting from auto accidents. The only accepted alternative to car insurance is a deposit with the state of $40,000 in cash or certificates.

The Arizona Mandatory Liability Insurance Law requires that each motor vehicle in operation on the state's roads be covered by liability insurance through a company authorized to do business in the state. This includes not just cars and trucks, but also golf carts, motorcycles and mopeds.

The minimum amounts of liability car insurance coverage in Arizona are:

• $25,000 for bodily injury to or death of one person in an accident caused by the driver of the insured vehicle
• $50,000 for bodily injury to or death of two or more people in an accident caused by the driver of the insured vehicle
• $15,000 for property damage per accident caused by the driver of the insured vehicle

This basic coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits.

You can carry more coverage to protect yourself in case a serious crash results in significant car accident injuries and vehicle damage. Remember, once policy limits are exhausted, you are personally financially responsible, so higher insurance limits can help protect your personal assets in the event of a serious crash.

Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.

Proof of insurance

Arizona requires that every motor vehicle operated on its roads be covered by liability insurance through a company that is authorized to do business in the state. This includes not just cars and trucks, but also golf carts, motorcycles, and mopeds.

Drivers must keep proof of their insurance, either with a physical or electronic copy of an insurance ID card, with them at all times while driving. You'll be asked to show this proof if you are pulled over on the road and when you register your car with the Motor Vehicle Division (MVD).

Arizona drivers can show proof of car insurance to a law enforcement officer by:

• Carrying and presenting a physical insurance card listing their policy details.
• Pulling up a digital version of the insurance card, declaration page, or other official policy documentation on their phone or other devices, in response to a request for proof of insurance.

If you are unable to provide proof of insurance, your vehicle's registration and/or your driver's license may be suspended. To get these privileges reinstated, you'll need to pay fees and file proof of financial responsibility with the Arizona Motor Vehicle Department.

Proof of financial responsibility

Arizona requires that every motor vehicle on the road be covered by a car insurance policy that meets certain minimum requirements. Most drivers demonstrate their financial responsibility by buying an auto insurance policy. However, there are alternative ways to show proof of financial responsibility.

• Liability insurance policy: This is the most common way to demonstrate financial responsibility. The minimum coverage limits are $25,000 for one person sustaining bodily injury or death in an accident, $50,000 for two or more people sustaining bodily injury or death in an accident, and $15,000 for damage to others' property.
• Deposit with the state: Instead of purchasing liability insurance, drivers can make a deposit of $40,000 in cash or securities (such as government bonds or notes) with the state treasurer. Once the treasurer verifies that the driver has no prior unsatisfied judgments against them, they will receive a certificate of deposit, which serves as proof of insurance. However, if the driver causes an accident, the claims will be paid out of this deposit, and they may be at risk of a lawsuit if the total amount exceeds $40,000.
• Certificate of Self-Insurance: This option is available for those who can prove they have sufficient financial resources to cover any potential claims.
• Alternative method of coverage: Arizona also allows for an unspecified alternative method of coverage, as outlined in section 28-4076.

Drivers must keep proof of their insurance with them at all times while driving. This can be in the form of a physical insurance ID card or an electronic copy on a mobile device. If a driver is pulled over or involved in an accident, they will be asked to show proof of insurance. Failure to produce evidence of financial responsibility can result in civil penalties, including fines and suspension of driving privileges.

Driving without insurance penalties

Arizona has strict penalties for driving without insurance. The penalties vary depending on the circumstances, including whether it is the driver's first, second, or third offence. Here are the penalties for driving without insurance in Arizona:

First Offence

• A fine of $500.
• Suspension of the driver's license, registration, and plates for three months.
• A possible SR-22 certificate requirement for two or three years.
• Reinstatement fees of $10, an application fee of $10-$25, and a $50 fee to get the registration and license plates back.

Second Offence

• A fine of $750.
• Suspension of the driver's license, registration, and plates for six months.
• A possible SR-22 certificate requirement for three years.
• Reinstatement fees of $10, an application fee of $10-$25, and a $50 fee to get the registration and license plates back.

Third and Subsequent Offences

• A fine of $1,000.
• Suspension of the driver's license, registration, and plates for one year.
• An SR-22 certificate requirement for two or three years.
• Reinstatement fees of $10, an application fee of $10-$25, and a $50 fee to get the registration and license plates back.

It is important to note that the court can impose additional fees and penalties, regardless of the number of offences. Additionally, drivers may face civil consequences, such as higher insurance premiums and financial trouble if they are in an accident without insurance.

Additional insurance coverage options

Arizona requires that every motor vehicle on the road be covered by a car insurance policy that meets certain minimum requirements. The mandatory minimum coverage limits in Arizona are:

• $25,000 for bodily injury to or death of one person in an accident caused by the driver of the insured vehicle
• $50,000 for bodily injury to or death of two or more people in an accident caused by the driver of the insured vehicle
• $15,000 for property damage per accident caused by the driver of the insured vehicle

These basic coverage limits pay the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians injured or whose vehicles are damaged in a car accident you cause, up to the coverage limits.

You can (and in some situations should) carry more coverage to protect yourself in case a serious crash results in significant injuries and vehicle damage. Remember, once policy limits are exhausted, you are personally financially responsible, so higher insurance limits can help protect your personal assets in the event of a serious crash.

While the above covers what you would owe to another driver, you may still have significant costs for your own medical care and car repairs. Most agents and government officials will tell you that getting only the mandatory insurance limits in Arizona is not enough to protect you.

In addition to increasing your liability limits, you could also consider adding these coverages to create a more comprehensive insurance policy:

• Physical damage insurance: This consists of collision and comprehensive coverage, covering your car’s repair costs, whether they were from a collision (regardless of fault), vandalism, or theft. The most you can receive under either coverage is your insured car’s current market value. Note that insurers usually ask for a deductible amount, which you must pay yourself after each claim before the coverage takes effect.
• Uninsured/underinsured motorist (UM/UIM) coverage: UM/UIM covers your own bodily injury medical bills when the at-fault motorist is uninsured or underinsured. Similar to your bodily injury coverage, there is also a range of limits you may purchase for UM/UIM. However, the UM/UIM limits cannot be higher than the bodily injury limits on the same policy.
• Medical payments (MED) coverage: MED covers your medical bills when the injuries are from an auto-related accident, up to a certain amount. This covers costs like ambulance rides, hospital visits, surgeries, and professional nursing costs. While some Arizona motorists may find this coverage redundant to their health insurance, MED reimburses the health insurance deductibles you have to pay before that coverage kicks in.
• Personal injury protection (PIP) or MedPay coverage: This can be used to pay your car accident medical bills.
• Collision coverage: This can pay for repairs to (or replacement of) your damaged vehicle after a car accident.

Alternative proof of financial responsibility

The Arizona Motor Vehicle Division (MVD) allows one alternative to an insurance policy. You may satisfy the financial responsibility law by making a deposit of $40,000, in either cash or securities (such as government bonds or notes), with the state treasurer. When the treasurer has verified that you have no prior unsatisfied judgments against you, you will receive a certificate of deposit. Use this certificate as your proof of insurance when you face a law enforcement officer in the Grand Canyon State. Just keep in mind that if you ever cause an accident in Arizona, the claims would be paid out of that deposit. Should the total amount be greater than $40,000, you'd be at risk of a lawsuit if the injured party decides to try to recover the rest.

Frequently asked questions