Auto insurance requirements in Arizona

Arizona requires drivers to carry a minimum amount of auto insurance coverage. These policies cover the costs associated with an auto accident. 

Review the Arizona insurance laws to make sure you have the legal and financial protection you need if a collision occurs. 

Proof of financial responsibility 

Arizona drivers must either purchase auto insurance or provide $40,000 in cash, certificate of deposit or bond. These funds pay for property damage and bodily injury to others if you cause an auto accident. 

Arizona follows fault laws for auto accidents. Under these regulations, the injured party can file a claim with either his or her own or the responsible driver’s insurance company. 

Coverage minimums 

If you choose to buy auto insurance rather than provide cash proof, your policy must cover at least: 

  • $10,000 in property damage per accident 
  • $15,000 per individual and $30,000 per accident for bodily injury 

You may decide to purchase coverage that exceeds these limits. Otherwise, if you have an at-fault accident or an accident with an uninsured driver, you may have to pay out of pocket for expenses beyond your policy amounts. You can also purchase comprehensive auto insurance, which covers your own costs for bodily injury and property damage in an accident. 

Penalties for auto insurance violations 

If a police officer stops you and you cannot show proof of auto insurance, you can receive a ticket. The fine for this offense ranges from $500 to $1,000. You could also receive a driver’s license and vehicle registration suspension. 

When you experience serious bodily injury in an auto accident caused by another person, his or her insurance coverage may not cover the full extent of your medical bills, lost wages and other costs associated with the collision. In this case, you can file a legal claim for financial damages within two years of the car accident date. Because of this statute of limitations, individuals should act quickly when facing the mounting costs of a debilitating car accident injury. 

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