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Every Arizona driver is legally required to carry auto insurance, and understanding Arizona auto insurance requirements is essential for protecting your rights, finances, and driving privileges. Whether you’re a longtime Arizona resident or just moved to the state, knowing the ins and outs of these laws ensures your commute to work every day is protected.
At Shapiro Law Team, we’ve helped residents protect their legal rights while making sure they have proper insurance coverage. Our comprehensive guide will cover the basics of Arizona auto insurance requirements, the importance of proper compliance, and how to select the right insurance policy for your specific situation.
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ToggleArizona operates under an at-fault insurance system, meaning the driver who causes an accident is financially responsible for the resulting damages. Unlike no-fault states, Arizona drivers file claims through the at-fault driver’s insurance company rather than their own.
Additionally, Arizona follows the principle of pure comparative negligence. This means that each party involved in an accident may be assigned a percentage of fault, and their compensation is reduced by that percentage.
For example, if you’re found to be 20% at fault in a crash, any damages awarded to you would be reduced by 20%.
In addition, all drivers must carry proof of financial responsibility at all times, which typically means showing a valid auto insurance card. However, other alternatives, such as deposits or certificates of self-insurance, are available under state law.
Arizona car insurance laws also mandate that insurance coverage is in place not just for operating a vehicle, but also for registering it. Failing to maintain continuous coverage can result in penalties, even if your car isn’t being driven.
In Arizona, state law requires drivers to carry minimum liability insurance to operate a motor vehicle legally. These coverage limits are sometimes referred to as “25/50/15” and include the following:
This means if you’re responsible for a crash, your policy must be able to pay up to $25,000 for injuries to one person, $50,000 total if multiple people are hurt, and $15,000 for damage to someone else’s property.
These insurance minimums apply to all registered vehicles, including cars, trucks, motorcycles, and mopeds. Failure to meet these requirements can trigger immediate consequences from the Arizona Department of Transportation (ADOT).
In Arizona, liability insurance pays for injuries and property damage you cause to others in an accident where you’re found at fault. It doesn’t cover your own medical bills or vehicle repairs.
Here are some examples of how this works in practice:
Liability coverage for both bodily injury and property damage is required by Arizona law, but it’s often not enough to cover serious accidents. That’s where optional coverages can help fill in the gaps.
Arizona drivers aren’t required to carry more than liability coverage, but many choose to add extra protection. Optional insurance plans offer financial safety nets when basic liability limits fall short.
Here are some of the most common optional coverages:
Driving without insurance is considered a serious offense in Arizona, and the penalties range from a license suspension to paying fines. During the suspension period, you won’t be able to legally drive or register any vehicle in your name.
Reinstating your license requires paying fines, obtaining SR-22 insurance, and possibly completing traffic courses.
The penalties also escalate with each violation:
Arizona follows a pure comparative negligence system. This means that each party in an accident can be assigned a percentage of fault, and their compensation is reduced accordingly.
For example, if you’re 10% at fault for an accident and the other driver is 90% at fault, you can still recover damages. However, your award will be reduced by 10%. Even if you’re 99% responsible, you can still claim 1% of the damages.
This system adds complexity to insurance claims and lawsuits, especially when fault is disputed. Working with a Phoenix car accident lawyer can help protect your rights and ensure your percentage of fault is fairly assigned.
Even if your vehicle is fully repaired, it may still lose resale value after a car accident. That loss is known as diminished value, and Arizona drivers may be eligible to file a claim for it.
A diminished value claim allows you to recover the difference between what your car was worth before the accident and what it’s worth after repairs. You can file a diminished value claim if:
While not all insurers are quick to pay these claims, Arizona does not prohibit them, and many drivers receive fair compensation when they provide detailed documentation.
Arizona Revised Statute (ARS) § 28-4009 outlines the state’s mandatory insurance law for motor vehicles. It also defines allowable exclusions, such as intentional acts or drivers excluded from the policy by name.
The key Arizona auto insurance requirements include:
While most people comply with Arizona’s insurance law by purchasing a standard policy, there are alternative options available. These alternatives require approval and often involve additional paperwork and legal oversight. They’re typically used by businesses, not individual drivers.
Acceptable alternatives for proof of financial responsibility include:
If you’re moving to Arizona, you’ll need to update your insurance and registration fairly quickly.
Once you’ve finished unpacking your boxes, you must:
Your existing out-of-state policy may not meet Arizona’s liability minimums, so be sure to check with your insurer.
Arizona’s desert driving conditions, wildlife hazards, and open highways may also affect the type of coverage you need, especially for windshield repairs or roadside assistance.
Meeting Arizona’s minimum insurance requirements is just the start. Choosing the right policy means tailoring your coverage to match your vehicle, lifestyle, and local driving conditions.
When shopping for Arizona liability insurance, follow these tips to help you choose the right one:
Minimum liability limits might not cover the cost of serious accidents or multiple injuries. Adding comprehensive, collision, and uninsured motorist protection can reduce risk, especially if you drive frequently or live in high-traffic areas.
Premiums can vary dramatically between insurers. Use comparison tools to review monthly or annual rates, customer satisfaction ratings, and claim response times.
From desert dust storms to cracked windshields and monsoon flooding, Arizona’s environment can impact your insurance decisions. No-deductible glass coverage is beneficial due to the frequent windshield damage caused by sand and gravel. Roadside assistance can also be particularly valuable in rural or mountainous areas.
Failing to comply with Arizona’s car insurance requirements can lead to more than just a traffic ticket. It can affect your driver’s license, registration, financial future, and even your ability to recover damages in an accident.
When you stay compliant with Arizona auto insurance requirements, you:
Understanding Arizona car insurance laws is one thing, and navigating an accident claim is another. If you’ve been hit by an uninsured driver, are facing penalties for a lapse in coverage, or need help disputing fault in a crash, you don’t have to go it alone.
Reach out to our team of licensed Phoenix car accident lawyers at Shapiro Law Team for legal support and guidance that protects your rights. Our team works on a contingency fee basis, meaning you don’t pay us a thing unless we win your case.
No. Arizona only requires liability insurance that meets the 25/50/15 minimums. However, full coverage is strongly recommended for newer vehicles or financed cars.
Yes. UM/UIM coverage is optional in Arizona. However, insurers are required to offer it to you, and if you reject it, you must do so in writing.
If you don’t have UM coverage, you might be forced to pay for damages out of pocket. You can also sue the at-fault driver, which can be difficult if they lack assets. UM/UIM coverage provides peace of mind in these situations.
Teen drivers must be insured under a liability policy, either their own or their parents’. Insurance premiums are typically higher for young drivers, so families often shop around to find affordable options with good coverage.