What Arizona requires you to carry

Arizona law requires every driver to carry liability insurance before you get behind the wheel. Liability covers damage or injury you cause to someone else—their car, their medical bills, their property. You must have at least $15,000 per person and $30,000 per accident for bodily injury, plus $10,000 for property damage. These are the state minimums, and they are the floor, not a recommendation.

You do not have to carry collision or comprehensive coverage in Arizona unless your car is financed or leased. If you own your car outright, those are optional. But if a lender holds the title, they will require both. Collision pays for damage to your own car from a crash; comprehensive covers theft, weather, vandalism, and other non-collision events.

Arizona also requires uninsured motorist coverage at the same limits as your liability—$15,000 per person, $30,000 per accident for bodily injury. This protects you if someone without insurance hits you. You can decline it in writing, but most people keep it because uninsured drivers are common.

Key Takeaways

  • Arizona's minimum liability coverage is $15,000 per person and $30,000 per accident for bodily injury, plus $10,000 for property damage.
  • Uninsured motorist coverage is required at the same bodily injury limits unless you sign a written waiver.
  • Collision and comprehensive are optional if you own your car outright, but required if you have a loan or lease.
  • Your insurer must offer uninsured motorist coverage, underinsured motorist coverage, and medical payments coverage, though you can decline some in writing.
  • Arizona does not require you to file proof of insurance with the state, but you must carry it in your vehicle and show it to police if stopped.

What happens if you drive without insurance

Driving without liability insurance in Arizona is a criminal misdemeanor. A first offense carries a fine of $250 to $500, plus court costs. You will also lose your driver's license for at least 90 days. If you are caught a second time within three years, the fine jumps to $500 to $1,000 and your license suspension extends to one year.

Beyond the legal penalty, an accident without insurance creates a financial catastrophe. If you cause injury or property damage, the other person can sue you directly for the full amount. They can garnish your wages, place a lien on your home, or seize your bank accounts. A single serious accident can cost tens of thousands of dollars out of your pocket.

Arizona also has an assigned risk pool called the Arizona Automobile Insurance Plan (AAIP). If you cannot find an insurer willing to cover you through the regular market—usually because of a poor driving record—you can request coverage through AAIP. The rates are higher, but the coverage is the same as the state minimums.

Coverage options beyond the state minimum

Most drivers carry more than the state minimum because $15,000 per person is not much in a serious accident. A single hospitalization can exceed that amount. Many insurers recommend $25,000 per person and $50,000 per accident, or higher. Raising your limits usually costs only a few dollars more per month.

Underinsured motorist coverage protects you if someone at fault has insurance but not enough to cover your damages. If you have $100,000 in medical bills and the other driver's policy maxes out at $30,000, underinsured motorist coverage fills the gap up to your own policy limit. Arizona does not require it, but it is worth considering if you have significant assets or a family depending on your income.

Medical payments coverage (also called med pay) pays your medical bills regardless of who caused the accident. It covers you, your passengers, and family members in your household. Limits typically range from $1,000 to $10,000. It does not cover lost wages or pain and suffering, only medical treatment.

Collision and comprehensive deductibles usually start at $250 or $500. Raising your deductible to $1,000 lowers your premium, but you pay more out of pocket if you file a claim. This trade-off makes sense if you have emergency savings and rarely file claims.

How Arizona insurance companies set rates

Arizona does not regulate how much insurers can charge, so rates vary widely between companies for the same driver and car. Your driving record, age, gender, marital status, credit score, and the type of vehicle all affect your rate. Where you live in Arizona matters too—urban areas with more accidents and theft typically cost more than rural areas.

Your claims history is one of the biggest factors. A single at-fault accident can raise your rate by 20 to 40 percent for three to five years. A DUI or reckless driving conviction can double your rate or more. Some insurers will not cover you at all if your record is too bad, which is when the AAIP becomes your only option.

Bundling home and auto insurance usually saves 10 to 25 percent on your auto premium. Many insurers also offer discounts for good driving records, completing a defensive driving course, paying in full instead of monthly, or allowing them to monitor your driving through a mobile app. Ask your insurer what discounts you might be missing.

How to file a claim in Arizona

If you are in an accident, call the police if anyone is injured or if there is significant property damage. Get the other driver's name, phone number, address, driver's license number, license plate, vehicle identification number (VIN), and insurance information. Take photos of the damage, the accident scene, and the other vehicle. Get the names and contact information of any witnesses.

Contact your insurance company as soon as possible—most insurers have a 24-hour claims line. You will need the police report number if one was filed, the other driver's information, and photos. Your insurer will assign an adjuster who will inspect the damage and determine what they will pay. If you disagree with their assessment, you can request an independent appraisal.

Arizona law gives you 30 days to report a claim, but reporting sooner is always better. The longer you wait, the harder it becomes to gather evidence and witness statements. If the other driver is at fault and their insurance is paying, you should not have to pay your deductible—their insurer will reimburse you.

Cancellation and non-renewal in Arizona

Your insurer can cancel your policy for non-payment, but they must give you at least 10 days' written notice. They can also cancel for fraud or material misrepresentation—for example, if you lied about your driving record or the primary use of the vehicle. For other reasons, they must give you 30 days' notice.

Non-renewal is different from cancellation. An insurer can choose not to renew your policy when it expires, usually with 30 days' notice. They do not need to give a reason. If you have been cancelled or not renewed, you can request coverage through the Arizona Automobile Insurance Plan, though rates will be higher.

If your license is suspended for unpaid traffic tickets or other violations, your insurer may cancel your policy. You cannot legally drive without a valid license anyway, so this is a signal to resolve the underlying issue before you get back on the road.

Frequently Asked Questions

Can I get car insurance in Arizona with a suspended license?

Most insurers will not insure you while your license is suspended. You need a valid, unsuspended license to legally drive and to hold an active policy. Once your suspension is lifted and your license is reinstated, you can purchase insurance again.

Does Arizona require me to carry proof of insurance in my car?

Yes. You must have proof of insurance with you whenever you drive. This can be a paper card, a digital copy on your phone, or a screenshot of your policy. If you are stopped by police and cannot show proof, you can be cited even if you are actually insured.

What is the difference between liability and uninsured motorist coverage?

Liability covers damage you cause to someone else. Uninsured motorist covers damage someone else causes to you when they have no insurance. Both are required in Arizona, though you can decline uninsured motorist in writing.

Will my insurance cover me if I lend my car to a friend?

Your policy typically covers anyone driving your car with your permission, as long as they have a valid license. However, if they cause an accident, your insurance pays first, and your rates may go up. Some insurers exclude household members or specific drivers, so check your policy.

How long does an accident stay on my driving record in Arizona?

Arizona keeps accident records on your driving record for three to five years, depending on the severity and whether you were at fault. Even after it falls off your record, your insurer may still use it to set rates if they have their own records of the claim.