Arizona requires all motorists to cover their vehicles with liability insurance. The state calls it a statutory form of financial liability. In addition to cars, trucks and SUVs, the law also applies to golf carts, motorcycles and mopeds. Vehicles must be registered and insured before they can be driven on any roadways.
There are minimums for liability coverage: $15,000 for bodily injury of one person and $30,000 for two or more, and $10,000 for property damage liability. Liability means that you are responsible for the injuries and property damage of another person or persons when you are in an accident.
Find Arizona insurance providers
Drivers can get Arizona auto insurance quotes from any provider licensed or to provide liability coverage in the state. For a list of companies qualified to provide Arizona auto insurance quotes, contact the Arizona Department of Insurance.
The law does not require insurance to cover damage to or theft of your own vehicle . However, if you owe money on a car loan, the bank or lienholder could require insurance on the vehicle to protect their investment. Coverage for repairs or replacement of your own vehicle is known as collision and comprehensive coverage. If your car is stolen, or damaged in an accident that is your fault, or if the other driver is to blame but is not insured, having this type of coverage will provide funds to help you repair or replace your vehicle.
Why you need insurance
Those who don’t insure their vehicles properly could have their vehicle registration or drivers licenses suspended.
Other penalties include:
- Fines from $500 to $1,000
- Impounding of your vehicle
- Potential for civil lawsuits
- Higher rates for previously uninsured drivers
In order for registration or license to be reinstated, Arizona motorists will have to pay fees and provide future proof of financial responsibility. This is commonly referred to as an SR22 form, which the motorist gets from an insurance company. Arizona law requires the vehicle owner to keep an SR22 for three years, which can be expensive for the motorist.
More Arizona auto insurance tips
If you lived in another state and have moved to Arizona, you cannot drive your vehicle until you’ve registered it and purchased insurance from a company licensed to do business in Arizona.
Arizona residents who are leaving the state, for military service, to attend college or a similar reason, can de-insure their vehicles on a short-term basis.