Arizona State Minimum Insurance Coverage

Auto Insurance Requirements in Arizona

Like most states in the U.S., the state of Arizona requires that all drivers secure car insurance for their registered vehicles. The state has minimum required liability insurance requirements that a driver must meet to comply with the state's laws.

What is an Auto Insurance Liability Limit?

Liability car insurance helps to protect you financially if you are found to be at fault for an accident. When you purchase car insurance, you select a bodily injury liability limit that is broken down by the amount of coverage your insurance company will pay out to one person you may injure in an accident that you cause and carries a maximum limit that the carrier will pay out for injuries for the overall claim. In addition, you will select a property damage liability coverage limit, which is the maximum your insurance company will pay to repair or replace the other driver's vehicle or other property you may damage in a crash.

Arizona Car Insurance Laws

Arizona requires every motor vehicle on the road to be covered by a car insurance policy that meets certain minimum requirements. Arizona car insurance laws are similar to many other states, with a focus on liability coverage for bodily injury liability and property damage liability. The Arizona Department of Insurance regulates the car insurance industry in the state, monitors financial conditions, licenses insurance agents, and provides consumer assistance.

Liability Insurance Requirements

Like most states, Arizona law requires drivers to maintain a car insurance policy for a registered vehicle. In Arizona, the required amount of coverage is at least $25,000 in bodily injury liability coverage per person, at least $50,000 in bodily injury liability coverage per accident, and property damage liability coverage at a minimum of $15,000 per accident. This is called a "split liability limit" and may be represented as 25/50/15 on your auto insurance policy.

Though carrying the minimum coverages in Arizona will satisfy the state's requirements for you to legally drive, the limits are quite low and may not protect you in the event of a serious accident in which you are at fault. For example, if you get into a car accident and cause $30,000 in injuries to the other driver, the bodily injury liability portion of your policy would only pay the injured party $25,000, which would leave the other $5,000 as your responsibility to pay out of pocket. If in that accident, you caused $25,000 worth of damage to the other driver's vehicle, your car insurance policy would only pay them $15,000 to fix their car leaving the other $10,000 as your responsibility to pay out of pocket to the other driver. Because Arizona's liability requirements are so low, oftentimes a driver's insurance policy is not sufficient to respond to the injuries and damages they cause in an accident. You should consider purchasing as much bodily injury liability coverage and property damage coverage as you can afford to best protect yourself in an accident.

Insurance Coverage Options

In addition to bodily injury and property damage liability coverage, Arizona drivers have the option to purchase additional valuable coverages on their car insurance policy. Since liability insurance only covers injuries and damages to other people and their property, a minimum coverage insurance policy does not cover the damages to the insured driver's vehicles or their and their passengers' medical expenses resulting from an accident. Here are some valuable additional coverages that Arizona drivers should consider purchasing:

• Collision Coverage: This coverage will respond to damages to your vehicle caused by another vehicle or object after you have satisfied the deductible you select on your policy for this coverage.

• Comprehensive Coverage: This coverage will respond to damages to your vehicle caused by animals, fire, theft, vandalism, or weather after you have satisfied the deductible you select on your policy for this coverage.

• Medical Payments Coverage (MedPay): This coverage will pay for the medical expenses that you and your passengers incur in a car accident, whether you caused the accident or not, up to the limit you select on your policy.

• Rental Car Reimbursement Coverage: This optional coverage will pay you to rent a replacement vehicle for a set amount per day for a set number of days while your car is being repaired from a covered claim on your car insurance policy.

• Roadside Assistance Coverage: This is optional coverage you can buy on your car insurance policy in case your vehicle is disabled or needs to be towed. Roadside assistance coverage pays for things like towing, jump-starting a dead battery, repair of a flat tire, locksmith services, delivery or fuel if you run out of gas, and more, depending on your insurance carrier.

• Towing Coverage: This optional coverage will pay for your disabled vehicle to be towed up to a limit that you have set on your policy.

• Uninsured/Underinsured Motorist Coverage: In some states, Uninsured/Underinsured Motorist (UM) coverage is required, but it is optional in others. UM coverage will pay for your and your passenger's injuries if you are hit by a driver who does not have insurance or does not have enough insurance to pay for your and your passengers' medical expenses after an accident.

Penalties for Driving Without Insurance in Arizona

Driving without adequate insurance coverage in Arizona is illegal and has serious consequences. Fines, license suspension, and SR-22 certificate requirements are possible penalties. Arizona residents who are found guilty of driving without insurance may be required to obtain an SR-22 certificate once their license is reinstated. An SR-22 is a formal document that your car insurance company files with the Arizona Department of Motor Vehicles to prove your financial responsibility.

How to Get Car Insurance in Arizona

You can purchase insurance coverage for your vehicle in Arizona through an independent insurance agent, directly through an insurance company, or you can use an online rating website such as A-MAX Insurance to get quotes from multiple insurance carriers to determine which insurance company can provide you with the most coverage at a price you can afford. Regardless of how you purchase your car insurance policy, ask your insurance agent or insurance company about any discounts you may qualify for to ensure you are getting the best possible rate on your car insurance.

FAQs About Arizona Auto Insurance

Q: Can I drive without car insurance in Arizona?

A: It is illegal to drive without car insurance in Arizona. You must purchase an insurance policy with at least a 25/50/15 liability insurance limit to legally drive in the state.

Q: How do I get car insurance in Arizona?

A: You can obtain an auto insurance policy through an independent insurance agent directly from an insurance company, or you can gather quotes for multiple insurance companies through an online rating website such as A-MAX Insurance.