Arizona Car Insurance Laws

Why you can trust The Zebra

The Zebra partners with some of the companies we write about. However, our content is written and reviewed by an independent team of editors and licensed agents. Reference our data methodology and learn more about how we make money.

Author profile picture

Ross Martin

Insurance Writer

  • 4+ years in the Insurance Industry

Ross joined The Zebra as a writer and researcher in 2019. He specializes in writing insurance content to help shoppers make informed decisions.

Ross h…

Author profile picture

Kristine Lee

Insurance Analyst

  • Licensed Insurance Agent — Property and Casualty
  • 4+ years of Experience in the Insurance Industry

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

Auto insurance requirements in Arizona

The state of Arizona requires proof of insurance (including an ADOT code) before you can register a vehicle. Every driver must have at least the minimum amount of liability coverage and must also carry proof of insurance while driving. This can also be referred to as your proof of financial responsibility.

See below the minimum amounts of car insurance coverage that drivers are required to carry in Arizona.[1]

Minimum Liability Coverage: 25/50/15
$25,000 for bodily injury per person
$50,000 for bodily injury per accident
$15,000 for property damage per accident

Liability coverage in Arizona

If you cause an accident, liability insurance covers those injured or who suffer damages. Liability insurance never covers your injuries or damages to your property. It pays the other driver only.

Liability insurance is separated out between bodily injury coverage and property damage. Bodily injury liability covers injuries caused by the at-fault driver, while property damage liability goes toward paying for personal property destroyed or damaged by the at-fault party. 

What are state-mandated car insurance limits? 

Almost every state requires a certain amount of insurance. The lowest amount you can carry and still legally drive is often referred to as the limit. Such limits can usually be increased for a small increase in rates, which is highly encouraged.  

The state of Arizona requires every driver to maintain a minimum amount of liability insurance in the amounts listed above. You’ll often see this written out as 25/50/15. This is known as a split limit as it lists the limits of three separate coverage types. These coverage types are per personper accident, and property damage.

  • Per person is the amount that will cover any single person injured in a car accident you cause. It will cover multiple people up to the “per accident” limit. 
  • The per accident limit applies if you injure more than one person in the same accident. It is the total amount that your insurance company will cover for bodily injuries you cause in any one accident. This limit is the total amount that your insurance company will pay, though never paying over the “per person” limit for any one person.
  • Property damage per accident is the total dollar amount that an insurance company will cover for damages to another’s property caused by you. 

Do Arizona’s required minimums provide enough coverage? 

Arizona's car insurance minimums are low, making it important for drivers to obtain coverage above the state-mandated limits. The minimum limits are unlikely to cover most costs, leaving drivers at risk of having to pay out of pocket. For example, if an accident causes $35,000 in injuries for the other driver, the liability coverage would only pay $25,000, even if the per-accident limit is $50,000. This is especially true for property damage coverage, where the minimum amount of $15,000 falls short of covering the cost of most new vehicles, which average anywhere from $25,000 to $30,000.

Arizona is a comparative fault state

Comparative fault — also known as comparative negligence — is a process in way of assigning fault in which the at-fault driver is responsible for paying for damages to others.

Arizona is a “pure” comparative fault state,[2] meaning this responsibility can be shared if it is found that both drivers share in the fault. It can be split by percentages. If one party is found to be 75% at fault, their auto insurance company would pay a proportional amount, while the other party’s insurer would be responsible for the remaining 25%.

Arizona is a diminished value state

Arizona is a diminished value state, meaning drivers are allowed to recover diminished value from the at-fault party’s insurance company. When your vehicle experiences an accident, even if it is fully repaired to its pre-loss condition, the resale value decreases. The involvement in a collision makes your car’s value lesser than similar vehicles that have not experienced an accident. A diminished value claim allows you to recoup the losses you might experience when selling your car. 

Since Arizona is one of the 15 states that offers compensation for diminution in value, you may file by contacting the at-fault party’s insurer. In order to file a diminished value claim in Arizona, certain requirements must be met. See those to the right. Please note that Arizona does not have uninsured motorist coverage for diminished value claims.

AZ diminished value claim requirements:

  • You typically cannot be leasing or financing the vehicle
  • You must be not at fault for the accident
  • You must provide documentation (photos, records of repairs made, and proof of vehicle value from a trusted source) 
  • You must file within the 2-years of the accident

Arizona's penalties for driving without proof of insurance

Drivers who operate a motor vehicle without the proper auto insurance coverage can face steep penalties, including the loss of driving privileges.[1] 

The penalty for failure to show proof of insurance in Arizona is as follows. 

  Fine Other Penalties
1st offense $500 Drivers license and registration suspended for three months. SR-22 required for two years.
2nd offense $750 Drivers license and registration suspended for six months. SR-22 required for two years.
3rd offense $1,000 Drivers license and registration suspended for one year. SR-22 required for two years.

Of course, the fines listed above are small in comparison to the damages you could be held responsible for if you cause an accident while driving without insurance in Arizona. 

Optional car insurance coverage in Arizona

Arizona law only requires that you carry liability insurance in the amounts listed above. However, the following coverages are great add-ons to your insurance policy if you are looking for more coverage. 

  • CollisionThis coverage steps in to cover your vehicle if you are involved in a collision with another driver or object (aside from animals). 
  • Comprehensive: Comprehensive insurance protects your vehicle against non-collision damages. This includes perils like theft, weather damage, and hitting an animal. Comprehensive and collision coverage — when purchased together — are typically referred to as “full coverage.” Sometimes, a lien-holder or bank can require full coverage if you are financing the vehicle.
  • Roadside assistanceThis coverage helps you in the event of a breakdown. The particulars of the coverage vary by company, but roadside assistance typically covers battery jumps, flat-tire fixes, and the cost of a tow to a nearby garage as well as some other perks. 
  • Medical payments: This covers medical and funeral costs for you and your passengers up to a specified amount.  
  • Uninsured motorist coverageAs the name would imply, this coverage covers you in the event you are hit by a motorist who does not carry liability insurance. While the at-fault driver is still on the hook for any medical bills to you or your passengers, uninsured motorist coverage exists in case they are not able to pay them right away.[3]

Why adhering to Arizona’s car insurance requirements is important

Of course you don’t expect to be the one at-fault in an accident. However, if you do find yourself in this situation, liability coverage will step in to cover the damages you cause — up to your policy limits, that is. Because Arizona’s liability limits are quite low comparatively, it’s always a good idea to increase them. This can usually be done for a reasonably low added premium. If you are looking for increased protection and a low premium, a good place to start is by shopping for quotes

Ready to start saving?

Location pin icon
No junk mail. No spam calls. Free quotes.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.