Arizona Car Insurance Requirements

According to the Arizona Department of Transportation, all cars registered in Arizona must be insured with at least 25/50/15 liability coverage limits.
Written by R.E. Fulton
Edited by Kathleen Flear
is an at-fault
car insurance
state. Drivers are required to carry proof of insurance that meets or exceeds the Arizona minimum limits of $25,000/$50,000 of bodily injury coverage and $15,000 of property damage coverage.

Car insurance requirements in Arizona

Arizona drivers must carry the following
liability auto insurance coverage
Liability insurance helps pay for damages (up to your insurance limits) that you cause to other drivers in an accident.
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Bodily injury liability covers medical expenses, while property damage liability covers the repairs or replacement of vehicles or other property damaged as a result of the accident.
You can explore different coverage levels and select coverage that best suits your needs in the

Comparative negligence in Arizona

Because Arizona is a pure
comparative fault
(or comparative negligence) state, each driver in an accident may be liable proportionate to their fault in the accident. 
If the other driver is found to be 25% at fault and you’re found 75% at fault, the other driver can file a claim against your liability insurance for 75% of their total damages and you could file against their liability for 25% of your damages.

Arizona is a diminished-value state

If your car is damaged in a wreck, it will lose some of its value—even if it’s repaired. In diminished value states, you can recoup that lost value, as long as you weren’t at fault for the accident.
file a diminished value claim in Arizona
, you’ll need to file a claim against the at-fault driver’s insurance. You’ll also need to submit evidence of the damage to your vehicle. Note that you typically can’t claim diminished value on a leased car.

Is minimum coverage the most cost-effective option?

You’ll get the cheapest insurance premiums by purchasing the minimum amount of liability insurance in Arizona, but it’s not necessarily the best money move. Here’s why.
According to the Insurance Information Institute (III), bodily injury claims after a car accident averaged $22,734 in 2021, and property damage claims averaged $5,314.  While minimum liability would cover an average accident, a serious accident could easily surpass those limits. The other party could file suit against you for the remainder of their costs.
Your own medical bills and vehicle repairs aren’t included in your liability coverage. For that, you’d need to purchase additional coverage, like collision insurance and medical payments (MedPay) coverage.
To better protect yourself in the event of an accident, consider raising your liability limits and adding coverage for your vehicle.
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If you shop for insurance using the
app, you can adjust your coverage levels before you request insurance quotes so it’s easy to see how much you would pay for varying levels of protection.

Keep in Mind:

If you lease or finance your vehicle, your lender will require you to carry collision and comprehensive coverage as part of your insurance policy. If you don’t purchase it, they can buy it for you (known as force-placed insurance) and add the cost to your car payments—but this is much more expensive than buying the coverage yourself.

Average cost of car insurance in Arizona

The average cost of minimum liability coverage in Arizona is $1,340 and the average cost of full coverage is $2,092. 
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It’s important to note that the average cost of car insurance may not be an accurate reflection of what you’ll actually pay.
That’s because car insurance companies calculate rates based on your unique profile, which includes data like your age, the car you drive, your driving record, where you live, and more.
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Optional coverages in Arizona

Here are a few of the additional coverages you can purchase in Arizona. Note that some of these, including collision and comprehensive insurance, require you to pay a deductible.
  • Collision coverage
    pays for damage to your own car caused by a collision, regardless of fault
  • Comprehensive coverage
    pays for damage to your vehicle caused by fire, vandalism, severe weather, theft, and other non-collision causes. 
  • Uninsured motorist coverage (UM)
    pays for medical bills from an accident caused by an uninsured driver 
  • Underinsured motorist coverage (UIM) helps to cover medical expenses from an accident caused by a driver whose liability limits are less than the total cost of treatment
  • Medical payments (MedPay)
    covers medical costs for you and your passengers, regardless of fault
  • Roadside assistance
    , also known as towing and labor coverage, pays for emergency roadside services like towing, lockout services, or fuel delivery 

Keep in mind:

Arizona auto insurance law requires all providers to offer uninsured/underinsured motorist coverage to drivers, but you can waive the coverage if you’d rather not carry it. If you do purchase it, the limits must be at least $25,000 per person and $50,000 per accident.

Penalties for driving without insurance in Arizona

If you’re caught
driving without insurance
in Arizona, you could face serious penalties, including:
  • $500 fine
  • Driver’s license suspension (3 months)
  • Vehicle registration suspension (3 months)
  • SR-22 requirement
    (also called proof of financial responsibility) (2 years)
  • $750 fine
  • Driver’s license suspension (6 months)
  • Vehicle registration suspension (6 months)
  • SR-22 requirement (2 years)
  • $1,000 fine
  • Driver’s license suspension (1 year)
  • Vehicle registration suspension (1 year)
  • SR-22 requirement (2 years)


What are the minimum requirements for auto insurance in Arizona?

Arizona law states that drivers must have car insurance coverage with limits of at least $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, and $15,000 of property damage liability per accident.

Does insurance coverage follow the car or the driver in Arizona?

In the state of Arizona, car insurance generally follows both the car and the driver. Physical damage coverage (comprehensive and collision) will always follow the car, but your liability insurance may still cover you if you’re driving a different vehicle.

Is Arizona a no-fault car insurance state?

No, Arizona is an at-fault state, which means that if you’re injured in a car accident that someone else caused, you’ll file against the other driver’s insurance for your injury-related expenses.

Can I have out-of-state car insurance in Arizona?

If you’re visiting temporarily, your out-of-state insurance will cover you while you’re driving in Arizona. But if you move to Arizona, you must transfer your car insurance policy and vehicle registration as soon as possible.

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