Arizona Car Insurance Laws

Arizona's Mandatory Liability Insurance Law requires the state's vehicle owners to carry liability car insurance in at least these amounts:

• $25,000 for injury or death of one person in an accident caused by the covered driver
• $50,000 for total injury or death of two or more people in an accident caused by the covered driver, and
• $15,000 for property damage per accident caused by the covered driver.

Let's explore the details of car insurance requirements in Arizona, and how insurance will come into play after a traffic accident.

Who Needs Car Insurance in Arizona?

Arizona requires that each motor vehicle in operation on the state's roads be covered by liability insurance through a company authorized to do business in the state. That includes not just cars and trucks, but also golf carts, motorcycles and mopeds. Liability coverage must meet the minimims laid out at the top of this article.

What Does Liability Car Insurance Cover in Arizona?

This basic coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits. You can (and in some situations should) carry more coverage to protect you in case a serious crash results in significant car accident injuries and vehicle damage. Remember, once policy limits are exhausted, you are personally on the financial hook, so higher insurance limits can help protect your personal assets in the event of a serious crash.

Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.

Liability Insurance Won't Cover You (or Your Car)

Remember that the liability coverage we discussed here doesn't apply to your own injuries or vehicle damage after an Arizona car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses. For example, personal injury protection (PIP) or MedPay coverage can be used to pay your car accident medical bills (this coverage is optional in Arizona), and collision coverage (also optional in Arizona) can pay for repairs to (or replacement of) your damaged vehicle after a car accident.

What Are My Claim Options After an Arizona Car Accident?

If you suffer injury or vehicle damage due to an auto accident in Arizona, you might be able to get compensation in one of three ways:

• by filing a claim with your own insurance company, assuming you have personal injury protection or MedPay coverage (for injuries) or collision coverage (for vehicle damage); note that in this situation, your insurance company will likely turn around and pursue a subrogation claim against the at-fault driver's insurer)
• by filing a third-party claim directly with the at-fault driver's insurance carrier, or
• by filing a personal injury lawsuit in civil court against the at-fault driver.

Will My Arizona Car Insurance Cover Me in Mexico?

No. If you drive your car from Arizona to Mexico, your U.S.-issued car insurance policy won't apply to you or your vehicle in Mexico. You'll need to purchase separate Mexico-issued liability insurance (or whatever specific kinds of coverage you want) in order to make sure you're protected if you cause an accident while driving in Mexico.

How Do I Show Proof of Car Insurance in Arizona?

Arizona drivers can show proof of car insurance to a law enforcement officer by:

• carrying and presenting a physical insurance card listing their policy details, or
• pulling up a digital version of the insurance card, declaration page, or other official policy documentation on their phone or other device, in response to a request for proof of insurance.

Penalties for Uninsured Drivers in Arizona

If you're asked for proof of insurance during a traffic stop or after a car accident in Arizona, and a law enforcement officer learns that you don't have insurance, you'll almost certainly face suspension of your vehicle's registration and/or your driver's license. And in order to get these privileges reinstated, you'll need to pay fees and file proof of financial responsibility with the Arizona Motor Vehicle Department.

Of course, these penalties will likely pale in comparison to the financial hit you could take if you're in a car accident and you don't have car insurance.

Getting Help After an Arizona Car Accident

If you simply have questions about Arizona's car insurance rules, hopefully we've answered those here. You can also learn more about the Arizona car accident laws that might come into play after a crash. But if you've been involved in a car accident in Arizona, you might need information that's tailored to your situation, including a snapshot of your options. Learn more about how a lawyer can help with a car accident case.