Arizona Car Insurance Laws and Requirements (2024)

Arizona law dictates the minimum requirements for insurance coverage that all drivers must carry. All drivers in Arizona must hold $25,000 in bodily injury liability coverage per person ($50,000 per accident with two or more people) and $15,000 in property damage liability coverage.

Minimum Car Insurance Requirements in Arizona

According to the Arizona Department of Transportation, minimum car insurance requirements in the state are^[1]:

• $25,000 for bodily injury liability per person, and $50,000 per accident

• $15,000 for property damage liability per accident

Be sure to note that the state’s minimum insurance does not include any coverage for personal injury, which helps pay if you or your passengers are hurt. Also, Arizona is a comparative-fault state, meaning fault and financial responsibility can be shared. If you cause an accident or are partially at fault, the minimum coverage might not cover everything you’re responsible for.

Bodily Injury Liability

Bodily injury liability is part of your liability car insurance coverage. If you cause an accident, this coverage will help cover the other party’s medical expenses. This type of coverage will not cover your own medical expenses for injuries sustained in a car accident you caused. Bodily injury liability coverage is required in Arizona.

Property Damage Liability

Property damage liability is the other half of your liability car insurance. It covers repair costs and damage expenses to the other cars involved in an accident you caused. This coverage does not cover damage to your own car in an accident you were at fault for. Property damage liability coverage is required in Arizona.

Is state minimum car insurance enough in Arizona?

The minimum required car insurance coverage in the state of Arizona provides drivers with a solid foundation of auto insurance coverage, but it’s likely not enough for everyone. With only the minimum liability insurance, you’ll be responsible for any property damage costs beyond $15,000 and any bodily injury costs beyond $25,000 for one person and $50,000 per accident.

If you’re responsible for an accident, these relatively low liability limits could leave you on the hook for exorbitant costs in property damage and others’ medical care. And meeting the state’s minimum insurance limits also won’t give you any coverage for your own injuries if you’re at fault. Being underinsured can wreck your finances for a long time.

Optional Car Insurance Coverage for Arizona

Arizona drivers who want to be protected in any situation should consider bolstering the minimum car insurance coverage with the following supplemental car insurance coverages:

Collision Coverage

Collision coverage covers damages to your car after a collision with another vehicle or object. If your vehicle is a total loss, collision coverage will reimburse you for the actual cash value of your vehicle. This is a great addition to the required property damage liability coverage in Arizona, which applies only to the damages to the other driver’s vehicle.

Comprehensive Coverage

Complementing your collision coverage, comprehensive insurance covers damage to your vehicle that occurs during an event that is not a collision with another vehicle or object. This may apply in situations of vandalism, theft, weather damage, or a run-in with an animal. Adding comprehensive and collision coverage together creates a full-coverage car insurance policy.

Uninsured/Underinsured Motorist Coverage

If an underinsured uninsured driver causes an accident and you suffer bodily injury, uninsured motorist coverage will cover your medical expenses. If the at-fault driver surpasses their bodily injury liability coverage limits, your underinsured motorist coverage will cover the rest of your medical expenses.

Other Supplemental Coverage

If you want coverage to help with your own and your passengers’ medical costs or funeral expenses after an accident in Arizona, you’ll need to purchase medical payments insurance, sometimes called MedPay. This coverage can provide important financial relief if you’re injured in a car wreck.

Depending on which insurance company they chose, Arizona drivers may also be able to opt into things like roadside assistance coverage, rental car coverage, accident forgiveness, vehicle replacement, and more.

Penalties for Driving Uninsured in Arizona

It is illegal to drive in Arizona without the minimum car insurance coverage. If you’re caught by law enforcement without proof of insurance, you might face fines and your vehicle registration and/or driver’s license can be suspended for three months to one year.

To get them back, you’ll face fees and have to submit future proof of financial responsibility with the state’s motor vehicle division (MVD), which could cost you a lot over the long run because it results in higher insurance rates.

Minimum Requirements for High-Risk Drivers in Arizona

To get back on the road after getting caught without the state’s minimum amount of car insurance, you’ll need to show future proof of financial responsibility in one of two forms:

• A Certificate of Insurance (known as an SR-22) from any insurance company licensed to conduct business in Arizona, or

• A certificate from the Arizona Office of Treasurer showing deposit in cash or certificates of deposit of at least $40,000.

If you go the SR-22 route (which is most common), you’ll be required to carry that form for three years, which is going to cost you: you’ll be grouped into the “high-risk” category, so your insurance premiums will be much higher. Plus, not every car insurance company offers SR-22 insurance. If you fail to maintain proof, your license and registration will be suspended.

More Information for High-Risk Drivers in Arizona

DUI Insurance in Arizona

SR-22 Insurance in Arizona

Cheapest Minimum Car Insurance in Arizona

Car insurance companies weigh different factors to determine what to quote drivers on their car insurance policies. Minimum coverage generally means lower car insurance rates. It also means low coverage limits, which may cost you if you’re ever involved in an accident. Here are the cheapest car insurance quotes for minimum coverage in Arizona.

How to Find Cheap Car Insurance in Arizona

The first step to finding the best rate on vehicle insurance is to shop around. You can save time with Insurify, which lets you compare car insurance quotes from multiple companies in your area. We also have objective agents who can help you free of charge at 1 (866) 405-5518.