Understanding Arizona's Minimum Auto Insurance Coverage Requirements

Arizona is one of the few states that does not require drivers to have car insurance. However, drivers who choose not to buy car insurance must prove they can be financially responsible for damages in the event of an accident. This can be done by providing a bond, certificate of deposit, or cash to the Department of Motor Vehicles. The payment amount varies but must be at least $30,000.

Bodily injury liability coverage

Arizona requires drivers to have a minimum amount of liability coverage and carry proof of insurance while driving. This is also referred to as proof of financial responsibility.

The minimum liability coverage in Arizona is 25/50/15:

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

The first number refers to the amount covered per person for bodily injury liability. The second number refers to the amount covered per accident for bodily injury liability. The third number refers to the amount covered per accident for property damage liability.

The minimum coverage limits in Arizona are considered quite low and may not cover all the costs of an incident. It is recommended that drivers obtain coverage above the state-mandated limits to avoid having to pay the remainder of the costs out of pocket. For example, if you cause an accident that results in $35,000 in injuries for the other driver, your insurance would only pay $25,000 for their injuries, even though your per-accident limit is $50,000.

Property damage liability coverage

Arizona requires drivers to have car insurance that meets or exceeds certain minimum coverage levels. One of these is property damage liability coverage. This type of insurance covers damage to other people's property caused by your vehicle. If you are responsible for an accident, property damage liability coverage will pay for the cost of repairing or replacing someone else's property. This typically applies to damage to another vehicle, but it could also cover any other type of property damaged in an accident.

The minimum property damage liability coverage required in Arizona is $15,000. This means that if you are at fault in an accident and the cost of repairing or replacing the damaged property exceeds $15,000, you will be responsible for paying the remaining cost out of pocket. Therefore, it is important to consider choosing a higher limit for this coverage, especially if you own a home or other expensive items, frequently travel in high-traffic areas, or live in an area with a lot of expensive vehicles.

It is important to note that insurance requirements can change over time, and Arizona has previously increased its minimum coverage limits. Therefore, it is advisable to stay up to date with the current requirements and review your policy regularly to ensure you have adequate coverage. Additionally, consider your specific needs and choose higher coverage limits if necessary to fully protect yourself.

Uninsured motorist coverage

Arizona requires drivers to have car insurance that meets or exceeds certain minimum coverage levels. One of the required coverages is uninsured motorist (UM) coverage, which is designed to protect you if you are in an accident with a driver who does not have insurance.

UM coverage is important because, in Arizona, it is estimated that as much as 13% of all drivers are driving without insurance. This means that there is a significant chance that you could be in an accident with an uninsured driver. If you are hit by an uninsured driver and you don't have UM coverage, you may not be able to get compensated for your medical bills and other expenses.

UM coverage will pay for your medical bills and property damage expenses if you are in an accident with an uninsured driver. It can also protect you in the event of a hit-and-run, where the driver leaves the scene and cannot be found. In Arizona, hit-and-run drivers are considered uninsured when it comes to bodily injury claims.

The minimum amount of UM coverage required in Arizona is $25,000 per person and $50,000 per accident. This means that if you are in an accident with an uninsured driver and your medical bills and property damage expenses exceed $25,000, you will only be able to receive up to that amount from your insurance company. If you have higher expenses, you may have to pay the difference out of pocket.

In addition to UM coverage, Arizona drivers are also required to have underinsured motorist (UIM) coverage. UIM coverage protects you if you are in an accident with a driver who has insufficient insurance to cover the cost of your injuries and damages. The minimum amount of UIM coverage required in Arizona is the same as for UM coverage: $25,000 per person and $50,000 per accident.

Underinsured motorist coverage

In Arizona, underinsured motorist coverage is an important form of protection for drivers and their passengers. This type of insurance coverage comes into effect when a driver or their passengers sustain bodily injuries in an accident caused by a driver who does not have sufficient insurance to cover the resulting medical costs. Essentially, it protects the insured from being left with the financial burden of medical expenses when the at-fault driver's insurance is inadequate.

Under Arizona law, drivers are required to carry bodily injury and property damage liability insurance. However, it is estimated that a significant number of drivers in the state, ranging from 12% to 30%, are uninsured, despite the mandatory insurance laws. This highlights the importance of underinsured motorist coverage, as it provides financial protection in the event of an accident involving one of these uninsured drivers.

The minimum requirements for underinsured motorist coverage in Arizona are set at $25,000 per person and $50,000 per accident for bodily injury liability coverage. This means that if you are involved in an accident with an underinsured driver and your expenses exceed these amounts, your underinsured motorist coverage will help cover the difference, ensuring that you are not left with excessive out-of-pocket costs.

It is worth noting that underinsured motorist coverage is not mandatory in Arizona. Drivers can choose to reject this coverage in writing. However, given the relatively high number of uninsured drivers on Arizona's roads, it is a wise decision to include this coverage in your insurance policy. By doing so, you can have peace of mind knowing that you and your passengers are financially protected in the event of an accident, regardless of the other driver's insurance status.

To make a claim against your underinsured motorist coverage, there are certain requirements that must be met. Firstly, you must notify your insurance provider in writing of your intention to pursue a claim within three years of the accident date. Additionally, you must have already filed a claim with the underinsured driver's insurance provider or taken legal action against them within the specified time limits. It is always advisable to consult with a knowledgeable attorney who can guide you through the claims process and ensure you receive the compensation you are entitled to.

Proof of financial responsibility

Arizona requires drivers to have car insurance that meets or exceeds the minimum insurance coverage levels. This is to demonstrate financial responsibility. If a driver is found to be operating a vehicle without insurance, their vehicle registration and driver's license may be suspended. Once the suspension is over, the driver will be required to prove financial responsibility to reinstate their vehicle registration and driver's license.

The minimum coverage limits in Arizona are:

• $25,000 for one person sustaining bodily injury or death in an accident
• $50,000 for two or more persons sustaining bodily injury or death in an accident
• $15,000 for damage to others' property

These minimum coverage requirements are often listed as 15/30/10 in insurance documents. This means that the policy includes $15,000 per person, $30,000 total per accident, and $10,000 for property damage.

Drivers in Arizona can demonstrate their financial responsibility by obtaining a certificate from the Arizona Treasury Office, which confirms cash or certificate deposits of $40,000. Another option is to couple your insurance with SR-22 liability coverage. SR-22 is a document that verifies that someone has automobile insurance. It is not an insurance policy itself but acts as evidence that the driver has a policy. An SR-22 may be required for a period of years following a DUI conviction, for example.

Frequently asked questions