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.

  • money icon

    Not all minimum coverage costs the same

    Comparing quotes will help you find the cheapest policy.

  • points icon

    Choose your best option

    Compare rates and coverage options from top insurers.

  • insurance2 icon

    Acquire quotes

    Compare multiple insurers' quotes to maximize your savings.

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.

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.

Insurance Rates

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.


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

Arizona's car insurance laws require everyone who wants to operate a motor vehicle to carry insurance. If you can't show proof of insurance in a traffic stop or an accident, you’ll face several penalties. These may range from paying fines to the suspension of your license, plates and registration.

Proof of insurance is part of the requirements if you want to have your car registered in Arizona. You’ll also have to present an ID with your photograph as well as the title and registration application. You need to show your out-of-state title and registration if you registered your car elsewhere before living in Arizona.

At the very least, you have to carry liability insurance with 25/50/15 coverage limits. These are the thresholds stated in Arizona’s car insurance laws. It means your policy protects you from costs up to $50,000 from all medical treatments to third parties. If multiple people were injured, your insurance covers a maximum of $25,000 per person. It also protects you against expenses from property damage up to $15,000.

Insurance generally follows the car in Arizona, not the driver. It means if you lend your car to someone and they cause an accident, your car insurance provider in Arizona will still protect you against the other driver’s expenses from medical treatment and repairs. However, there are add-on coverages that extend the protection afforded by an insurance policy to car rentals. In this case, the insurance follows the driver, not the car.

Driving without a license is illegal in Arizona, but it doesn’t mean that you shouldn’t get car insurance. Be prepared, however, for the process to be slightly different since a driver’s license is one of the first things an insurance provider asks for. Since a car insurance policy typically follows the car and not the driver, it allows you to have protection even if you aren’t behind the wheel. It's helpful in situations wherein you cannot drive due to a medical condition or if you employ a personal chauffeur.

Arizona is a tort state or an at-fault state. Here, causing an accident results in you having to shoulder the expenses of the other party. It includes costs of medical treatments for sustained injuries and expenses from damages to the car.

In Arizona, personal injury protection is sometimes referred to as medical payments coverage. It isn’t part of Arizona’s minimum car insurance requirements — if the other driver caused the accident, their policy should cover your medical and repair expenses up to the liability limits.

PIP coverage may be helpful, however, if you cause an accident and carry a liability-only policy. In this scenario, you can use PIP coverage to pay for your medical bills.

Another coverage that isn’t part of Arizona’s minimum state requirements is uninsured motorists insurance. With 11.8% of drivers in Arizona remaining uninsured, however, it may be a good idea to add this to your policy. It protects you from costs from medical treatments or car repairs if the person who hits you does not have insurance.

Arizona is one of the states where you can get compensation for the difference in your car’s market value before and after an accident, but you must file the claim within two years of the accident. This is the statute of limitation for diminished value claims in Arizona.

If anything but a collision caused the accident, or if you were at fault, you cannot file a diminished value claim in Arizona.

There are high penalties if you are convicted of a DUI in Arizona. These include paying fines and serving jail time. Depending on the number of offenses you have on your record, fines become more expensive, and jail time becomes longer.

On top of those, Arizona requires you to file an SR-22 form. It guarantees the state that your policy meets the minimum car insurance requirements in Arizona. An SR-22 filing informs insurance providers in Arizona that you are a high-risk driver, which typically results in substantially more expensive annual premiums.

Only five states require a CARCO inspection before you can purchase collision and comprehensive insurance. Arizona is not one of them.

In Florida, Massachusetts, New Jersey, New York and Rhode Island, insurance providers avoid fraudulent claims by ensuring they have an accurate record of the car’s condition before the policy takes effect. CARCO releases a report to car insurance providers containing this information.

Learn More About Car Insurance

About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.