Car Insurance in Arizona

State minimum coverage requirements

Under Arizona Revised Statutes Section 28-4135, all Arizona drivers must maintain the following minimum coverage:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $15,000 property damage per accident

Driving without insurance in Arizona results in a license suspension for three months on a first offense. To reinstate your license, you must pay a $50 fee, provide proof of current insurance, and in some cases file an SR-22 certificate for three years. A second offense within 36 months results in a six-month suspension and a $100 reinstatement fee. A third or subsequent offense within 36 months leads to a one-year suspension. Arizona also requires a motor vehicle record check when reinstating a suspended license, and the suspension may be extended if additional violations appear on your record. The property damage minimum of $15,000 has not been updated in decades and is easily exceeded in an accident involving a newer vehicle.

Is Arizona a no-fault state?

No. Arizona is an at-fault state.

Arizona is an at-fault state that applies a pure comparative fault rule, which differs from the modified comparative fault rules used in states like Texas and Georgia. Under pure comparative fault, you can recover compensation from another driver even if you were predominantly at fault for the accident, though your recovery is reduced proportionally by your percentage of fault. If you were 80 percent at fault for an accident that caused you $50,000 in damages, you could still theoretically recover $10,000 from the other driver. This rule also means that if you cause an accident and the other driver was partially at fault, they can still recover the portion of their damages that corresponds to your share of fault, which your liability coverage would need to pay. The $15,000 property damage minimum is particularly low relative to the cost of many vehicles on Arizona roads, and the bodily injury minimum of $25,000 per person can be quickly exhausted in a serious injury accident. Carrying limits above the state minimum meaningfully reduces your personal financial exposure.

What the state minimum covers and does not cover

Arizona's 25/50/15 liability minimum covers only injuries and property damage you cause to other people. It does not cover:

• Damage to your own vehicle from a collision
• Your own medical expenses after an accident
• Losses caused by an uninsured or underinsured driver
• Theft, weather events, or vandalism to your vehicle

Uninsured motorist coverage in Arizona

Arizona insurers must offer uninsured and underinsured motorist coverage, and drivers may reject it in writing. Arizona has historically had a significant percentage of uninsured drivers on its roads, which makes UM coverage a practical protection for most policyholders. UM coverage pays for your medical expenses and vehicle damage when an at-fault driver carries no insurance. UIM coverage pays the gap between an at-fault driver's policy limit and your actual losses when that driver is underinsured. Arizona also allows coverage for hit-and-run accidents under the UM provision. Given the at-fault system and the risk of encountering uninsured drivers, carrying UM and UIM at matching limits to your liability coverage provides the most complete protection.

How credit affects your rate in Arizona

Arizona permits insurers to use a credit-based insurance score as one factor when pricing auto policies. The check is a soft inquiry and does not affect your credit report or credit score. Arizona law requires insurers to notify you if credit information results in an adverse action on your policy, giving you the opportunity to review your credit report for inaccuracies. If your credit has improved since your last renewal, shopping new quotes across multiple carriers is worthwhile because carriers weight credit differently and improvements in your score can reduce your premium even without any change in your driving record.

Recommended coverage levels

Most advisors recommend carrying at least 100/300/100 liability in Arizona, which is significantly above the state minimum and provides meaningful coverage in a serious accident. The $15,000 property damage minimum is especially insufficient given the cost of newer vehicles and trucks common on Arizona roads. If your vehicle is financed or leased, your lender will require collision and comprehensive in addition to liability, often with a maximum allowable deductible written into the loan terms. For vehicles you own outright, consider the current market value and the annual cost of collision and comprehensive. Arizona's relatively dry climate reduces weather-related claims compared to some states, but the state's high vehicle theft rates make comprehensive coverage worth carrying on higher-value vehicles.

How insurers determine your rate in Arizona

Arizona insurers use your driving record, zip code, vehicle type, age, annual mileage, and credit-based insurance score to calculate your premium. Phoenix and Tucson metro areas produce higher premiums than rural Arizona because of higher accident frequency, vehicle theft rates, and repair costs in urban markets. Arizona's vehicle theft rate is above the national average, which makes comprehensive coverage more relevant here than in some other states. At-fault accidents and moving violations typically affect your rate for three to five years. Because each insurer weights these factors differently, comparing quotes from multiple carriers at renewal is the most reliable way to find the most competitive rate for your specific profile.

SR-22 requirements in Arizona

An SR-22 in Arizona is a certificate filed by your insurer with the Motor Vehicle Division confirming you carry at least the state minimum liability coverage. You may be required to maintain an SR-22 after a DUI conviction, after driving without insurance, or after certain serious traffic violations. The requirement typically lasts three years from the triggering event, and your license remains suspended until the SR-22 is on file. If your policy lapses during the SR-22 period, your insurer must notify the Motor Vehicle Division immediately, which reinstates your suspension. Not all insurers handle SR-22 filings, so drivers who need one should specifically look for carriers that serve the non-standard auto insurance market in Arizona.