What Arizona requires you to carry

Arizona law requires every driver to carry liability insurance before operating a vehicle on public roads. Liability coverage pays for damage or injuries you cause to someone else in an accident — it does not cover your own vehicle or medical bills.

The minimum liability limits in Arizona are 15/30/10: $15,000 per person for bodily injury, $30,000 per accident for bodily injury to multiple people, and $10,000 for property damage. These are the floor. If you cause an accident that exceeds these limits, you remain personally responsible for the difference.

You must carry proof of insurance in your vehicle at all times. Arizona accepts a physical insurance card, a digital image on your phone, or a printed declaration page from your insurer. If you are stopped by police and cannot show proof, you face a fine and possible license suspension, even if you actually have a policy.

Key Takeaways

  • Arizona requires liability insurance with minimum limits of 15/30/10, and you must carry proof in your vehicle or on your phone.
  • Uninsured motorist coverage is optional but protects you if someone without insurance hits you and causes injury or property damage.
  • Collision and comprehensive coverage are optional unless you financed or leased your vehicle, in which case your lender requires them.
  • Insurance rates in Arizona vary by age, driving record, location, and the vehicle you drive, and you can request quotes from multiple insurers to compare.
  • If your license is suspended for driving without insurance, you must file an SR-22 form with the Arizona Department of Transportation to reinstate it.

Uninsured and underinsured motorist coverage

Arizona does not require uninsured motorist (UM) coverage, but it is available and protects you when another driver causes an accident and has no insurance or insufficient coverage. UM coverage pays your medical bills and vehicle damage up to the limit you choose, using your own policy rather than waiting for the at-fault driver's insurer.

You can reject UM coverage in writing, but most insurers include it automatically unless you decline. The cost is typically modest — often $10 to $30 per month depending on your limits and deductible — and it covers not only collisions but also hit-and-run accidents where the other driver flees.

Underinsured motorist (UIM) coverage is similar but applies when the at-fault driver has insurance that is not enough to cover your losses. If another driver carries only the state minimum and causes $50,000 in damage, UIM fills the gap between their policy limit and your UIM limit.

Collision and comprehensive coverage

Collision coverage pays to repair or replace your vehicle if you hit another car, a fixed object, or roll over — regardless of who is at fault. Comprehensive coverage pays for damage from theft, weather, vandalism, or hitting an animal. Neither is required by law, but if you financed or leased your vehicle, your lender or leasing company requires both.

You choose a deductible for each — typically $250, $500, or $1,000. A higher deductible lowers your monthly premium but means you pay more out of pocket when you file a claim. If your vehicle is worth less than $5,000, the cost of collision and comprehensive coverage may exceed what you would receive in a claim, so some owners of older cars drop these coverages once they own the vehicle outright.

Comprehensive claims do not count against you the way collision claims do. If a tree falls on your car or someone steals your stereo, filing a comprehensive claim typically does not raise your rates, though some insurers explore a surcharge after multiple comprehensive claims in a short period.

How Arizona insurers set your rate

Insurance companies in Arizona use several factors to calculate your premium. Your age, driving record, and the type of vehicle you drive are the largest variables. A 19-year-old with a speeding ticket will pay far more than a 45-year-old with a clean record, even for the same coverage.

Your location within Arizona also affects your rate. Urban areas like Phoenix and Tucson have higher rates than rural counties because accident frequency and theft rates are higher. Some insurers also consider your credit score, though Arizona law limits how much weight they can give it.

You can request quotes from multiple insurers — most offer them free online or by phone in minutes — and rates vary significantly between companies for the same driver and vehicle. Comparing at least three insurers before purchasing is standard practice and can save hundreds of dollars per year.

What happens if you drive without insurance

Driving without proof of insurance in Arizona results in a fine of $250 to $500 for a first offense. A second offense within three years costs $500 to $750, and a third or subsequent offense can reach $1,000. You also face license suspension.

If your license is suspended for driving without insurance, you cannot straightforward pay the fine and drive again. You must file an SR-22 form with the Arizona Department of Transportation. This is a certificate from your insurer confirming you carry the required liability coverage. Your insurer files it on your behalf once you purchase a policy, and you must maintain continuous coverage for three years or your license suspension resumes.

An SR-22 does not change your coverage or add extra protection — it is straightforward proof to the state that you are insured. However, insurers typically charge a filing fee of $15 to $25, and rates for drivers with an SR-22 on file are higher because the state considers them higher risk.

Discounts and ways to lower your premium

Most Arizona insurers offer discounts for bundling auto and home insurance, maintaining a clean driving record for three or more years, completing a defensive driving course, and installing anti-theft devices. Some offer discounts for low annual mileage or for paying your premium in full rather than monthly.

Telematics programs — where you allow your insurer to monitor your driving through an app — can lower your rate by 10 to 30 percent if you drive safely. These programs track speed, hard braking, and time of day you drive, and you can see your own data to identify risky habits.

Asking your insurer about discounts when you purchase a policy and reviewing them annually is worth the time. Discounts change, new ones are added, and you may become may be able to access for ones you were not when you first signed up.

Choosing coverage limits above the state minimum

Arizona's minimum liability limits of 15/30/10 are low compared to what a serious accident can cost. A single injury requiring hospitalization can easily exceed $15,000, and if you cause an accident that injures multiple people or damages expensive property, you could face a judgment for $100,000 or more.

Many financial advisors recommend carrying at least 100/300/100 — $100,000 per person, $300,000 per accident, $100,000 property damage — especially if you have assets to protect. If a court judgment exceeds your insurance limits, creditors can pursue your wages, bank accounts, and other property to satisfy the debt.

Increasing your liability limits from the minimum to 100/300/100 typically costs $15 to $40 more per month, depending on your age and driving record. An umbrella policy — a separate policy that covers claims exceeding your auto insurance limits — costs $150 to $300 per year and provides $1 million in additional coverage.

Frequently Asked Questions

Can I get car insurance in Arizona if I do not have a driver's license?

No. You must have a valid Arizona driver's license or a learner's permit to purchase auto insurance. If your license is suspended, you cannot legally drive or insure a vehicle until it is reinstated. Some insurers will issue a policy if you have a valid license from another state and are moving to Arizona, but you must obtain an Arizona license within 30 days.

What should I do if I am hit by an uninsured driver?

Call police and file a report, then contact your own insurance company. If you carry uninsured motorist coverage, your insurer will cover your medical bills and vehicle damage. If you do not have UM coverage, you can pursue the other driver in small claims court, though collecting a judgment from someone without insurance is often difficult. Your insurer can also help you locate the other driver's assets.

Do I need to tell my insurer if I move to a different city in Arizona?

Yes. Your location affects your rate, so if you move from Phoenix to a rural area, your premium may decrease. Contact your insurer with your new address before you move. Failing to update your address can void your coverage if you file a claim, because the insurer may argue you misrepresented your risk.

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

An at-fault accident typically stays on your record for three to five years, depending on your insurer's underwriting guidelines. A minor accident may fall off after three years, while a serious accident or one involving injury may remain for five years or longer. You can request your driving record from the Arizona Department of Transportation to see what insurers will see.

Can I cancel my insurance policy anytime?

Yes, you can cancel at any time, but you must have another policy in place before canceling or you will be driving illegally. Some insurers charge a cancellation fee if you cancel mid-term, though many waive it. If you are switching insurers, your new company can coordinate the cancellation with your old one so there is no gap in coverage.