Auto Insurance In Az: What You Need To Know

Arizona requires drivers to have car insurance that meets or exceeds the minimum coverage limits. 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, and $15,000 for damage to others' property. This is often written as 25/50/15. Arizona drivers must keep proof of insurance, either a physical or electronic copy of an insurance ID card, with them at all times while driving.

Minimum coverage limits

Arizona drivers are required to have proof of financial responsibility when operating a motor vehicle on Arizona roadways. Most drivers demonstrate their financial responsibility by buying an auto insurance policy. 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 limits are often referred to as 25/50/15 coverage limits. This means that a policy that meets Arizona's mandatory insurance requirements includes two liability insurance coverages: bodily injury and property damage. When a driver causes a car crash, liability insurance helps them pay for the other driver’s medical bills and property damage, up to a certain amount, known as the coverage limits.

The state requires a minimum coverage limit for each of these. For bodily injury, the minimum coverage limits are $25,000 per injured person and $50,000 for two or more injured persons in an accident in which the driver is at fault. For property damage, the minimum coverage limit is $15,000 for damaged property the driver causes in any accident where they are found to be at fault.

It is important to note that these are the minimum coverage limits required by law in Arizona. Drivers may want to consider higher coverage limits, depending on their individual needs and circumstances. Additionally, there are optional add-on coverages available in Arizona, such as uninsured/underinsured motorist coverage, collision coverage, comprehensive coverage, medical payments coverage, and rental reimbursement, which can provide additional protection.

Proof of financial responsibility

Arizona requires all drivers to have proof of financial responsibility when operating a motor vehicle on Arizona roadways. This can be demonstrated by purchasing an auto insurance policy. The minimum coverage limits 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

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. This proof of insurance must be shown if a driver is pulled over on the road and when they register their car with the Motor Vehicle Division (MVD).

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. This certificate can then be used as proof of insurance. However, if you cause an accident and the total amount of damages exceeds $40,000, you may be at risk of a lawsuit if the injured party decides to pursue the remaining amount.

Bodily injury liability coverage

Arizona requires all drivers to have proof of financial responsibility when operating a motor vehicle. Most drivers demonstrate this by purchasing an auto insurance policy. This insurance policy must include liability insurance, which covers bodily injury and property damage.

It is important to note that bodily injury liability coverage does not pay for your own bodily injuries if you are in an accident. To have your own injuries covered, you would need to purchase Medical Payments coverage. Additionally, bodily injury liability coverage only applies to other drivers and passengers, not to pedestrians or passengers in your own car. If you want to ensure that your passengers are covered in case of an accident, you may want to consider purchasing additional insurance coverage.

While the minimum coverage limit for bodily injury liability in Arizona is $25,000 per person and $50,000 per accident, you may want to consider purchasing a higher limit. The cost of medical care can be high, and if you are found to be at fault in an accident, you could be held financially responsible for any expenses that exceed your coverage limit. By purchasing a higher limit, you can help protect yourself from potential financial ruin in the event of a serious accident.

It is also important to keep in mind that insurance requirements can change over time. The minimum coverage limits in Arizona were increased in July 2020, and they may be raised again in the future. It is always a good idea to review your insurance policy periodically to ensure that you have adequate coverage.

Property damage liability coverage

Arizona requires all drivers to have proof of financial responsibility when operating a motor vehicle on Arizona roadways. Most drivers demonstrate their financial responsibility by buying an auto insurance policy.

The minimum coverage limit for property damage liability coverage in Arizona is $15,000 for damaged property you cause in any accident where you are found to be at fault. This may cover the other driver's car, property damaged in the accident, such as buildings and fences, and more. Higher limits are usually available but vary by insurer.

In addition to property damage liability coverage, Arizona drivers must also consider the other types of insurance coverage that are available. These include bodily injury liability coverage, uninsured/underinsured motorist coverage, medical payments coverage, physical damage coverage, and more. Each type of coverage offers protection in different situations or categories of damage.

Uninsured/underinsured motorist coverage

Arizona requires all drivers to have uninsured motorist (UM) and underinsured motorist (UIM) coverage. This insurance covers your medical bills and property damage expenses if you are involved in an accident caused by a motorist with insufficient or no insurance.

UM coverage protects you and your passengers from bodily injury caused by a driver with no liability insurance. This includes broken bones, lacerations, organ damage, head trauma, and back or neck pain. If you are the victim of a hit-and-run, where the driver leaves the scene and cannot be found, UM coverage also protects you. In Arizona, it is estimated that 13% of drivers are uninsured, so UM coverage is essential for protecting yourself from financial burden in the event of an accident caused by an uninsured driver.

UIM coverage, on the other hand, protects you and your passengers if you are involved in an accident with a driver whose insurance is insufficient to cover the total cost of your injuries. For example, if you sustain injuries totaling $30,000 in costs, but the driver only has the minimum required insurance of $15,000 per person for bodily injury liability coverage, UIM coverage can help make up the difference.

The minimum coverage limits for both UM and UIM in Arizona are $25,000 per person and $50,000 per accident. These coverage limits cannot be higher than the bodily injury limits on the same policy. If you already have UM and UIM coverage on your policy that is below these limits, your insurer will automatically increase the amount of coverage to the new minimum limits.

Frequently asked questions