Arizona Car Insurance Requirements and Coverage

Cars driving on Arizona road 163 toward Monument Valley

Like many states, Arizona requires its residents to fulfill certain car insurance requirements in order for them to drive legally. You may wonder, “What are the Arizona car insurance minimum requirements?” “Can I get discounts on AZ car insurance?” “Are there alternatives to having car insurance in Arizona?” “What are the penalties for driving uninsured?”

Don’t feel overwhelmed. Here is a brief breakdown of the main details regarding auto insurance in Arizona.

Arizona Car Insurance Requirements

When it comes to car insurance, AZ state law requires that all drivers have a policy that meets or exceeds the following minimum amounts of coverage:

  • Bodily injury liability coverage of $15,000 per person/$30,000 per accident
  • Uninsured motorist bodily injury coverage of $15,000 per person/$30,000 per accident
  • Underinsured motorist bodily injury coverage of $15,000 per person/$30,000 per accident
  • Property damage liability coverage of $10,000

You may want to consider getting higher coverage limits depending on your insurance needs. However, when searching through car insurance quotes, AZ state law makes it clear that you need to purchase a policy that at least meets these standards.

Discounts

In order to get cheap car insurance, AZ insurance companies might be able to cut you a better deal. Many providers can lower your rates if you bundle an auto policy with other insurance products or have certain safety features in your vehicle. You’ll have to ask your insurance provider if they offer any such discounts and if you qualify.

However, if you have a comprehensive deductible on your car insurance, Arizona can offer you a benefit. Arizona drivers with a comprehensive deductible qualify for the safety glass non-deductible option. This benefit allows your insurance to pay for repair or replacement of safety glass on your covered vehicle without paying a deductible. This means that qualified drivers can get their windshield, windows, and other glass materials within the vehicle fixed without needing to pay out of pocket.

Other Methods of Financial Responsibility

If you elect to not get auto insurance, Arizona will allow you to drive legally if you are able to prove that you’re able to be financially responsible if you get into a car accident. The Arizona Motor Vehicle Division will allow you to pay a deposit of $40,000 to the State Treasurer. If your driving record is free of violations such as a DUI or other major infraction, you will be granted a certificate of deposit to use as your proof of insurance. Any claims filed against an accident you caused will be paid out of that $40,000. You should also know that you’re risking a potential lawsuit if any claim made exceeds the $40,000 deposit. For most people, it is much easier and cheaper to get a standard AZ car insurance plan.

Penalties for Driving Uninsured

If you drive without auto insurance, AZ law will come down on you hard. If you are an Arizona resident and are caught without car insurance, your driver’s license and vehicle registration can be suspended or revoked. You can get them reinstated, but the Arizona Department of Transportation will require:

  • A license reinstatement fee of $10 for a suspended driver’s license or $20 for a revoked driver’s license
  • An application fee of:
    $25 for drivers aged 16 to 39 years old
    $20 for drivers aged 40 to 44 years old
    $15 for drivers aged 45 to 49 years old
    $10 for drivers aged 50 years old or older
  • SR-22 certification
  • Proof of future financial responsibility

If you are looking for affordable insurance rates in Arizona, you have a friend in Freeway! Freeway Insurance gathers up a wide assortment of car insurance rates from the top carriers in the U.S., so you can easily pick the best plan at the best price. Call us or get a free car insurance quote online to start saving big money on insurance coverage.