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Arizona Requirements for Car Insurance

In terms of financial responsibility for losses caused by a car accident: injuries, vehicle damage, lost income, etc. Arizona follows the classic "fault" based approach.  This means that whoever caused the car collision is also accountable for any damages that occur.

In Arizona, someone who is injured or affected by car accidents can usually go by one of the three ways:

  • by making a claim to his/her insurance company, if the damage is covered under the policy (in that case the insurance company of the injured person may turn and proceed against the at-fault driver carrier to make a subrogation claim)
  • by filing a third-party claim directly to the at-fault driver's insurance company, or
  • by filing and personal injury claim against the at-fault driver in civil court.

A claimant in a no-fault vehicle insurance state does not usually have the same options.  In a no-fault state, regardless of who caused the accident, you must utilize the personal injury protection coverage of your own auto insurance policy to pay for medical expenses and other out-of-pocket losses.

You can only step outside of no-fault and file a claim directly against the at-fault driver if your injuries exceed a particular threshold.  But drivers from Arizona don't have to worry about no-fault for an accident in the State.

Driving without automobile insurance carries severe repercussions in the state of Arizona.  You suffer legal fines and suspended driving rights if you do not possess state minimum auto insurance.  And the effect on your finance can be worse if you have an accident while driving uninsured.  It's just not worth the risk.

Minimum Car Insurance Requirements in Arizona

Evidence of financial responsibility is necessary for all drivers in Arizona.  The Arizona Motor Vehicle Division declares that policies with the following minimum coverage limits are necessary for all vehicles:

  • Bodily injury liability coverage is $25,000 per person and $50,000 per accident.
  • Property damage liability coverage with $15,000

The bodily injury coverage helps pay for medical charges and death in an automotive accident that you cause for another motorist and their passengers.  The property damage protection helps pay for the car repair or property of the other party for repairs.  If you are an at-fault driver in an automobile collision, neither of these coverage will help your vehicle with injury or damages.

It is essential that your insurance coverage does not lapse.  If you do, your insurance company will notifiy the MVD, and you will be asked to provide proof of insurance.  AZ MVD Now is a great place to go if you need to update your insurance information.

What are state-mandated car insurance limits?

Almost every state mandates a specific level of coverage.  The smallest amount that you can carry and yet drive lawfully is generally referred to as the limit.  Such limits can generally be increased for a small increase in costs, which is highly encouraged.

In Arizona, each motorist is required to keep a minimum of liability coverage in the above-mentioned levels.  This is written as 25/50/15 you will often see it.  This is called a split limit since it lists three different types of coverage limits.  These types of coverage are per person, per accident, and per damage to property.

  • The sum per person will cover any single individual injured in an automobile accident caused by you.  It will cover up to the "per accident" limit for multiple people.
  • If more than one person injures in the same accident, the limit per accident shall apply.  It's the maximum amount of money your insurance company will pay out for bodily injuries you caused in a single accident.  This is the total amount your insurance company will pay out in total, never exceeding the "per person" limit for anyone.
  • Property damages per accident are the total monetary amount covered by an insurance carrier for damages caused to the property of another person by you.

Why is it vital to follow Arizona's vehicle insurance laws?

You don't expect to be the one who causes an accident.  If you do find yourself in this circumstance, liability coverage will kick in and pay the losses you cause, up to the limits of your policy.  Because the liability limits in Arizona are so low in comparison to other states it's always a good idea to raise them.

This is usually possible for a relatively low added premium.  If you want more coverage for a lower price, shopping for quotes is a wonderful place to start.

In Arizona, what is the punishment for driving without vehicle insurance?

If law authorities caught you in Arizona with no evidence of insurance, you may lose your driver's permit for up to one year and pay up to $1,000 pulus $35 in costs for reimbursement.  there may also be additional court fees.  For your first and future offenses, here's what you may expect:

  • First offense: A $500 fine is imposed, as well as a three-month suspension of the driver's license, plates, and registration.
  • Second offense: A punishment of $750 is imposed, as well as a six-month suspension of the driver's license, plates, and registration.  
  • Third and subsequent offenses: A $1,000 fine is imposed as well as a one-year suspension of the driver's license, plates, and registration.

You must have an SR-22 policy for three years when your license is suspended due to an infringement of Arizona law.  During that time, you must maintain at least the state's minimum car insurance coverage requirements.  You'll have to start over if your coverage expires.  You'll need to get your policy from a company in Arizona that can file an SR-22 with the MVD.

You'll have to pay more for an SR-22 policy since drivers who need one are considered high-risk.  However, if you utilize INsurify to compare quotes from different insurance providers, you can still obtain reasonable Arizona SR-22 insurance coverage.