Arizona Minimum Auto Insurance Requirements (2024)
Arizona requires a minimum of 15/30/10 of bodily injury and property damage coverage. The average rate of auto insurance is around $42.39/mo.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active insurance licenses in seven states and over 20 years of professional experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ach...
Licensed Agent & Financial Advisor
UPDATED: May 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: May 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Arizona drivers are required to buy auto insurance or a $40,000 Certificate of Deposit from the Arizona State Treasurer’s Office
- Driving without at least the state minimum car insurance in Arizona could result in major financial repercussions
- Med Pay is optional but additional coverage is recommended to Arizona drivers when purchasing insurance
Are you looking to find affordable car insurance in Arizona? If so, you’ll want to begin by learning about Arizona’s mandatory auto insurance requirements.
You can always buy more insurance than Arizona’s minimum car insurance, but you will need to purchase at least minimal levels of coverage to be in compliance with Arizona car insurance laws. Make sure to compare rates with our free quote tool above!
Exploring the Bare Minimum Auto Insurance Coverage in Arizona
So then, what are Arizona’s state minimum car insurance requirements? Before we begin with discussing AZ minimum car insurance coverage, it is necessary to understand that Arizona is a tort state.
In layman’s terms, the person found responsible for the accident is held to be at fault. Therefore, No-Fault, Uninsured Motorist (UI) and Underinsured Motorist (UIM) are not legally required insurance coverage in Arizona.
According to Arizona auto insurance laws, you will need a bare minimum car insurance coverage of:
- Bodily Injury (BI) in a single accident $15,000 minimum for one person; $30,000 per accident for multiple people claiming injuries.
- Property Damage (PD) Liability in a single accident – $10,000.
OR
- A $40,000 Certificate of Deposit held by the Arizona State Treasurer’s Office.
According to the Arizona Department of Transportation, this is the minimum car insurance in Arizona required by law. Unfortunately, being a tort (fault) state, Arizona auto insurance minimums may not be sufficient coverage if you are found to be all, or at least partially, at-fault.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
The Importance of Understanding Arizona Vehicle Insurance Requirements
When you are comparing insurance quotes online, you may not understand exactly what each coverage entails.
For example, you may be offered Medical Payments as an optional coverage, but do you understand the difference between Bodily Injury and Medical Payments? They may sound the same but they cover two very different things.
Arizona defines ‘Vehicle Insurance‘ as “protection against damage to, or loss of, a land or air vehicle.” Accidental injury and/or death is also included within their regulatory definition of what vehicle insurance constitutes.
BI covers the driver and passengers in another vehicle if you are found at-fault. Med Pay, as it is commonly referred to, covers the listed driver of your vehicle and may cover any passengers within your insured vehicle.
Med Pay may also help with funeral expenses. Med Pay can kick in regardless of fault, so keep this in mind when choosing important optional coverage.
Summing it up, you should, at the very least, be familiar with:
- Bodily Injury – Covers injuries to driver and passengers in the other vehicle; pedestrians in at-fault accidents.
- Property Damage – Covers replacement costs for vehicles and/or property damaged when at fault.
- Medical Payments – Injuries to driver of insured vehicle and/or passengers within the insured vehicle.
- Uninsured/Underinsured Motorist – This category covers UMBI, UMPD, UIMBI and UIMPD. In other words, it kicks in when the other driver is uninsured, or underinsured, and found to be all, or partially, at-fault. These options are great in states like Arizona where no-fault insurance isn’t required.
- Collision – Usually carries a deductible and covers repairs/replacement to your car if at-fault.
- Comprehensive – Covers acts of nature and animal damage to your vehicle or covered property.
- Umbrella Insurance – Provides extra financial coverage above and beyond your policy limits to help guard against substantial losses if you have personal assets to protect.
Again, these are just the fundamentals of key insurance terms you will want to consider when comparing rates between insurance providers.
Although you are not required to carry anything but AZ minimum auto insurance coverage listed above, you may need the extra protection against financial loss if you have much to lose.
A Look at Arizona’s Comparative Fault Legislation
Here is where the whole concept of being at-fault can get a little tricky. Although Arizona is a tort state, it is actually a Comparative Negligence State. The easiest way to understand the concept of Comparative Fault is to look at fault as a pie cut into slices.
How much of that pie (fault) belongs to you? If the other driver is found to be 60% at-fault, you may be financially and legally responsible for the remaining 40 percent.
However, what happens when you are involved in a multi-vehicle collision? That 40 percent could be quite costly! Perhaps one driver is found to be 50 percent at-fault while other drivers are 30 percent and 20 percent respectively.
In a Comparative Fault state, it pays to carry more than Arizona’s minimum coverage auto insurance because you may need to call on your insurance to pay for legal defense if the claim goes to litigation.
Complying With Arizona Insurance Requirements
What all this boils down to is having the ability to weigh risk against cost. In fact, insurance actuaries calculate the cost of Arizona car insurance based on the amount of risk they will be carrying. Meeting only Arizona state minimums may leave you with lower premiums, but it will also leave you exposed to greater financial risk.
Do AZ state minimum insurance requirements meet yours? Make sure you are getting the best rate with our free insurance comparison tool below now!
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Frequently Asked Questions
What are Arizona minimum auto insurance requirements?
The minimum auto insurance requirements in Arizona are as follows: $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident, and $15,000 property damage liability coverage per accident. AZ auto insurance requirements ensure that you have a basic level of financial protection in case you cause an accident.
Is it necessary to have additional coverage beyond Arizona’s state minimum insurance?
While AZ state minimum car insurance coverage is legally required, it is often recommended to consider additional coverage options. Minimum coverage may not be sufficient to fully protect you in the event of a serious accident. Additional coverage, such as collision, comprehensive, uninsured/underinsured motorist, and medical payments coverage, can provide added protection and peace of mind.
What does bodily injury liability insurance cover in Arizona?
Bodily injury liability insurance in Arizona covers the medical expenses, pain and suffering, and lost wages for individuals injured in an accident for which you are at fault. The coverage helps you fulfill your financial responsibility in compensating others for their injuries.
What does property damage liability insurance cover in Arizona?
Property damage liability insurance in Arizona covers the cost of repairing or replacing property belonging to others that you damage in an accident for which you are at fault. This includes vehicles, buildings, fences, and other types of property.
Can I use alternative forms of financial responsibility instead of Arizona state minimum liability insurance?
Yes, in Arizona, you have the option to provide alternative forms of financial responsibility instead of purchasing auto insurance. These alternatives may include a certificate of deposit with the Arizona State Treasurer, a cash deposit with the Arizona Department of Transportation (ADOT), or a self-insurance certificate obtained from the ADOT. However, these alternatives generally require substantial financial commitments.
Can I use out-of-state auto insurance to meet Arizona car insurance requirements?
If you are a resident of Arizona, you must typically obtain auto insurance that meets AZ car insurance requirements. While some insurance policies may provide coverage across multiple states, it’s important to ensure that your policy specifically includes coverage in Arizona and meets or exceeds the state’s minimum requirements.
What are the minimum levels of insurance that you must carry in the state of Arizona to legally drive?
So, what is the minimum car insurance in AZ? AZ auto insurance laws require liability insurance with minimum limits of:
- $25,000 bodily injury liability per person, per accident
- $50,000 bodily injury liability total, per accident
- $15,000 property damage liability per accident
How long do you have to insure a car in Arizona?
You don’t need to continuously insure a car, but you must have valid insurance when operating it on public roads.
How does car insurance work in Arizona?
Car insurance protects you financially in case of an accident. The minimum liability insurance in Arizona pays for the other party’s injuries and property damage if you’re at fault.
What is full coverage in AZ?
Full coverage refers to a combination of liability, comprehensive, and collision insurance.
Is car insurance high in AZ?
Car insurance rates vary depending on factors like age, driving record, location, and the car itself. Arizona’s auto insurance rates might be lower than some other states, but it’s always best to compare quotes from different insurers.
Is AZ a no-fault state?
Arizona is an at-fault state, meaning the driver who caused the accident is financially responsible.
How much is car insurance in AZ for a 20-year-old?
The average annual full coverage premiums for 20-year-olds on their own policy are
$444 per month.
Can you self insure in Arizona?
Arizona allows self-insurance, but you must meet strict financial responsibility requirements set by the state.
Can I register a car without insurance in Arizona?
You cannot register a car in Arizona without insurance.
Is it illegal to drive in AZ without insurance?
Yes, driving without insurance is illegal in Arizona and could result in severe penalties.
What is the 10-day rule for car dealerships in Arizona?
This rule refers to a temporary permit allowing you to drive an unregistered vehicle for a short period.
Is it cheaper to insure a car in Arizona or California?
The annual car insurance rates in Arizona are $349 less expensive than the average auto insurance rates in California.
How much is non-owner car insurance in AZ?
Non-owner SR-22 insurance typically costs around $200-$500 per year.
What are the requirements for commercial auto insurance in Arizona?
Arizona state minimum auto insurance requirements state that drivers of commercial vehicles need to comply with Arizona’s liability insurance requirements: $25,000 per person, $50,000 per accident for bodily injury and $15,000 for property damage.
Does Arizona require uninsured motorist coverage?
Arizona does not require uninsured motorist coverage, but it’s highly recommended as it protects you if the other driver has no insurance.
What does 25/50/15 mean for auto insurance in Arizona?
This refers to the minimum liability coverage limits in Arizona.
What are Arizona’s insurance minimums for rideshare vehicles?
Rideshare drivers need carry the minimum insurance coverage in Arizona, including an endorsement for uninsured motorist coverage.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active insurance licenses in seven states and over 20 years of professional experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ach...
Licensed Agent & Financial Advisor
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.