Arizona requires commercial auto insurance with 25/50/15 liability limits, but coverage minimums vary by vehicle details, cargo and services offered.
Learn more about the commercial auto insurance coverage you need for your business in Arizona, special circumstances, exemptions and penalties below.
Updated: February 2, 2026
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Arizona's commercial auto insurance requirements are as follows for most companies:
Though this represents personal vehicle requirements for those that don't offer specialized services, and coverage minimums vary by vehicle weight, passenger capacity (livery), cargo (non-livery) and service structure.
Federal commercial auto insurance requirements become standard over Arizona state law when your operations involve transporting cargo or passengers across state lines or if you move cargo as part of an interstate shipment (even if you stay within Arizona for your leg). In any case, verify current requirements with the Arizona Department of Transportation , federal DOT standards and consult licensed insurance professionals to ensure compliance.
Below we've detailed the main exemptions from Arizona commercial auto insurance requirements and what type of coverage (if at all needed) applies instead.
Vehicle used only for personal (non-business) purposes | Personal auto insurance rules |
Farm or agricultural vehicle not operated on public roads | May not require liability coverage under road-use laws |
Off-road equipment (construction equipment, ATVs, etc.) not driven on highways | Not subject to on-road insurance mandates |
Government vehicles covered under authorized self-insurance programs | Government self-insurance statutes |
Vehicle not registered for road use (yard-only, private property use) | No road-use liability requirement |
Arizona allows passenger vehicles to use cash deposits as proof of financial responsibility. Commercial businesses requiring higher coverage ($250,000 to $5 million) must purchase standard commercial auto insurance policies or qualify for self-insurance certificates.
The state grants self-insurance certificates to commercial fleets with 10 or more vehicles, $1 million in verifiable assets and ongoing Arizona Department of Transportation (ADOT) Director approval. Large fleets with financial resources to cover claims without insurance choose this route.
Two situations require higher commercial auto insurance in Arizona or additional documentation:
Leasing companies include lessees on their policies or require coverage meeting Arizona's standards. Arizona's minimum liability won't cover the full lease balance if your vehicle is totaled. Gap insurance covers the difference between the actual cash value (ACV) and remaining lease amount.
Arizona policies exclude incidents in Mexico. Commercial vehicles crossing the Mexican border need separate liability coverage purchased from Mexican insurers. Mexico has different liability laws than the United States, requiring separate coverage for cross-border operations.
Arizona police verify commercial vehicle insurance instantly through the state's electronic system. Drive without coverage, and you'll pay fines that increase with each violation.
Arizona suspends licenses and cancels vehicle registrations for uninsured drivers. Your business can't operate without proper coverage.
First | Any time | $500 | Suspension or restriction for three months | May be suspended for three months | Compliance verification required for restricted license |
Second | Within 36 months of first | $750 | Suspension for six months | Suspension for six months | Full reinstatement required |
Third or more | Within 36 months of previous | $1,000 | Extended suspension periods | Extended suspension periods | Escalating penalties |
Arizona requires an SR-22 certificate filed by your insurer for reinstatement. SR-22 status increases insurance premiums for three years.
Use these steps to confirm your vehicles and business operations meet Arizona and, if applicable, federal commercial auto insurance rules.
Determine whether the vehicle transports passengers, hauls goods or equipment, operates only locally, or is involved in interstate activity. Insurance requirements depend on vehicle use, not just business type.
Find the Gross Vehicle Weight Rating (GVWR) on the driver-side door label. If the rating is 10,001 pounds or more, federal commercial vehicle rules may apply.
Vehicles used only for local Arizona business operations generally follow Arizona’s minimum liability requirements. Vehicles involved in interstate freight or passenger transportation may be subject to federal motor carrier insurance minimums instead.
Standard Arizona business vehicles must carry at least $25,000 bodily injury per person, $50,000 per accident, and $15,000 property damage coverage. Passenger-for-hire and federally regulated carriers often require much higher limits.
Make sure the policy classifies vehicles correctly, lists all drivers, and includes coverage for how the vehicle is used in business operations.
Interstate carriers may need a USDOT number and federal insurance filings. Passenger transport and hazardous materials operations can require additional state or federal registration.
Avoid coverage lapses and update your insurer when vehicles are added, removed, or used differently. Changes in use can change legal insurance requirements.
Commercial auto insurance requirements in Arizona depend on how your vehicles are used, how much they weigh, and whether your operations are local or connected to interstate transportation. Once you identify your vehicle use and jurisdiction, the next step is confirming your liability limits and policy details match the requirement category that applies to your business.
Now that you know the insurance requirements that apply to your vehicles, the next step is determining how much coverage your business needs beyond the legal minimums. Requirements set the floor, but your financial risk, contracts, and vehicle use determine the right limit.
If your goal is just legal compliance
Confirm your liability limits meet the Arizona or federal minimums that apply to your operation. Make sure your insurer classifies your vehicles correctly so coverage isn’t denied due to improper use categories when you get commercial auto insurance coverage.
If your vehicles are valuable or highly visible
Consider higher property damage and liability limits. Serious accidents often exceed state minimums, especially in urban traffic or when vehicles carry tools, equipment, or branding that increases lawsuit risk.
If you transport passengers
Review limits well above minimums. Passenger injuries increase exposure quickly, and many contracts or facility agreements require higher coverage than state rules.
If you haul goods or equipment
Match coverage to the potential loss value. Liability minimums may not cover damage caused by larger vehicles or heavier loads, and cargo or equipment exposures can increase claim severity.
If your business signs contracts
Check insurance requirements in agreements with clients, property owners, or platforms. Contractual limits often exceed legal minimums and can affect whether you’re allowed to operate.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
