Arizona Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

Drivers in Arizona need to carry insurance if they want to operate a motor vehicle on the road. It doesn’t apply to just cars — Arizona requires this even for golf carts, motorcycles or mopeds. Car insurance laws in Arizona state your liability coverage should at least be 25/50/15. Not meeting Arizona’s minimum car insurance requirements may result in fines and other penalties. You may also find yourself in financial distress if you cause an accident. As Arizona is a tort state, you have to cover the other party’s expenses from injuries and property damage if you are at fault. Having car insurance protects you against these financial risks.


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What Is the Minimum Car Insurance Requirement in Arizona?

On July 1, 2020, there was an increase in the minimum car insurance requirements in Arizona. Previously, drivers only needed to carry policies with 15/30/10 limits. Today, car insurance laws in Arizona require drivers to purchase policies offering at least 25/50/15 liability coverage. It means your insurance provider covers:

  • Up to $25,000 for bodily injuries per person
  • Up to $50,000 for bodily injuries per accident
  • Up to $15,000 for property damage

Despite the increased limits, expenses incurred during a collision may exceed these levels. Since Arizona is a tort state, you need to pay for the other driver’s expenses due to injuries and property damage if you’re at fault. Once you reach your insurance limits, you’ll start paying out of your pocket, which may put a dent in your savings.

A liability-only policy may protect you from the other driver’s expenses, but it doesn’t give you coverage for your medical needs or damages to your car. You can choose several optional coverages to add to your standard policy, such as medical payments or personal injury protection insurance and uninsured motorists insurance. Collision and comprehensive insurance are also worth considering. One way to get all of these is to purchase a full coverage policy instead of liability-only.

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What Does This Minimum Coverage Mean?

Arizona is considered an at-fault state. It means if you — or someone driving your car — causes an accident, you have to shoulder the third-party expenses for medical treatment and repairs. A 25/50/15 coverage limit protects you from costs brought about by the other driver’s medical expenses up to $50,000 per accident. If more than one person was injured, bodily injury coverage maxes out at $25,000 per individual. Third-party property damages are also covered up to $15,000 per accident.

How Much Does the Minimum Car Insurance Cost in Arizona?

How much car insurance costs in Arizona depends on several factors. Rates change based on your age, driving experience, driving history and more. Insurance providers also look at your postal code — if you live in a neighborhood with a higher crime rate, it may result in a more expensive premium since your risk exposure increases. Credit scores are another aspect considered — having good credit shows carriers your capability to pay the premium on time.

After comparing policies from several car insurance providers, MoneyGeek found GEICO to have the least expensive car insurance in Arizona. You can purchase a GEICO policy meeting Arizona’s minimum car insurance requirements for an annual premium of $366 on average.

Cheapest Minimum Liability Car Insurance in Arizona

Cheapest Minimum Car Insurance in Arizona
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These prices are only estimates based on rates for an average Arizona driver and should not be used to compare insurance prices.

The table shows rates for a 40-year-old male with a good credit score and clean driving record with a 2010 Toyota Camry. MoneyGeek used policies with coverage limits of 25/50/15, which fulfill Arizona’s minimum car insurance requirements.

MoneyGeek also ranked the best car insurance companies in Arizona for those who want strong service and affordable rates.

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What Is the Minimum Car Insurance Requirement in Arizona While Leasing a Car?

The state does not determine insurance requirements for leased cars in Arizona. A policy that meets Arizona’s minimum car insurance requirement may not be enough for leasing companies.

Most financial leasing companies require you to carry a full coverage insurance policy that includes collision and comprehensive insurance. They also prefer 100/300/50 as the minimum allowable coverage, as they want to protect their assets. The only way to determine exact requirements, however, is to contact your leasing company directly. It also allows you to ask for clarifications and figure out other arrangements, such as terms and conditions.

More than the minimum car insurance requirements in Arizona, there are other factors to consider when you’re calculating how much insurance you need.

Based on the number of uninsured drivers in Arizona, the state falls in the middle of the pack compared to other states. It ranks 24th in this metric. Uninsured motorist insurance is worth considering since 11.8% of drivers in Arizona do not carry insurance. It increases the amount of protection on the road and helps you with the cost of expenses from injuries or repairs if the other driver happens to have no insurance.

Penalties for Driving Without Car Insurance in Arizona

Carrying a policy that meets Arizona’s minimum car insurance requirements is mandatory. If your limits are below the 25/50/15 liability requirement, or if you can’t show proof of insurance during a traffic stop, it may result in the following penalties:

  • Fines up to $1,000
  • Suspension of driver’s license up to a year
  • Suspension of registration up to a year
  • Revocation of license plates up to a year
  • $35 reinstatement fee
  • Carrying SR-22 for two years

Showing proof of insurance within 30 days of the citation may help prevent the suspension of your license, registration and plates.

Since an SR-22 is also a requirement, filing it alerts insurance providers that you are a high-risk driver. It affects your insurance premium significantly, causing you to pay a high amount each year.

On top of these penalties, there’s also the danger of getting into an accident in Arizona. If you are at fault, you’ll have to shoulder the cost of damages the other driver incurs — these include treatment from sustained injuries and repairs from property damage. Having no insurance forces you to dip into personal funds, which may lead to financial challenges.

Frequently Asked Questions About Car Insurance in Arizona

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About the Author


Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.