Arizona requires at least $25,000 of bodily injury liability per person, $50,000 per accident and $15,000 of property damage liability, often written as 25/50/15. Insurers have to offer uninsured and underinsured motorist coverage in writing, but buying it is optional.
Arizona also tracks coverage through insurers’ reports to the Motor Vehicle Division (MVD), so a canceled policy can lead to a suspended registration even if you’re never pulled over.
Key Takeaways
- Arizona requires 25/50/15 liability coverage, the minimum since July 1, 2020.
- Uninsured and underinsured motorist coverage is optional, but insurers must offer it in writing. If you buy it, the minimum is 25/50.
- Insurers report cancellations to MVD. If MVD mails you a notice of intent to suspend, you have 15 days from the mailing date to send proof of insurance, or your plate and registration are suspended.
- A first offense for driving uninsured brings a civil penalty of at least $500 and a three-month license suspension or restriction. Repeat offenses within 36 months also suspend your registration and plates.
Arizona Minimum Car Insurance at a Glance
| Coverage | Requirement |
|---|---|
| Bodily injury liability | $25,000 per person and $50,000 per accident |
| Property damage liability | $15,000 per accident |
| Uninsured and underinsured motorist | Must be offered in writing. Optional, with a 25/50 minimum if you buy it. |
| Collision and comprehensive | Not required by law, but usually required by lenders and lessors |
The Arizona Department of Insurance and Financial Institutions (DIFI) lists these minimums, which took effect July 1, 2020. Before that, the minimum was 15/30/10, so some older guides are out of date. Instead of a policy, Arizona law also accepts $40,000 in cash or certificates of deposit held by the state treasurer, and some owners qualify for self-insurance. RateFrog’s guide to liability limits explains what 25/50/15 pays for.
Uninsured and Underinsured Motorist Coverage in Arizona
Under A.R.S. 20-259.01, insurers must offer uninsured (UM) and underinsured (UIM) motorist coverage by written notice, using a form approved by the state. You can buy limits up to your own bodily injury liability limits, and DIFI says 25/50 is the minimum if you choose the coverage.
UIM applies when the at-fault driver’s liability limits are less than your total injury damages, and it covers the difference, up to your UIM limit. Here’s a hypothetical example: your damages are $80,000 and the at-fault driver has a $25,000 limit. That leaves $55,000, and $50,000 of UIM coverage could pay up to its $50,000 limit toward it. Insurers can also limit coverage so only one policy or coverage, chosen by you, applies to a single accident.
One caution: Arizona’s law describes UM and UIM in terms of bodily injury, even though DIFI’s consumer page mentions property damage. Don’t assume your UM covers damage to your car. Check your policy, or rely on collision coverage for that. RateFrog’s guide to uninsured and underinsured motorist coverage explains how these coverages work.
Proof of Insurance in Arizona
Under A.R.S. 28-4135, you have to keep proof of insurance in the vehicle, and you can show it on a phone. The Arizona Department of Transportation (ADOT) says officers ask for it at traffic stops and crashes. RateFrog’s guide to getting proof of insurance fast can help if you need a card right away.
What Happens When Your Policy Is Canceled
Insurers tell MVD about new policies, cancellations and nonrenewals, and A.R.S. 28-4148 requires your insurer to warn you that your registration may be suspended. When an insurer reports that your policy is no longer active, ADOT says MVD will send you an inquiry notice to verify your insurance. Under A.R.S. 28-4149, MVD mails a notice of intent to suspend your plate and registration, and you have 15 days from the mailing date to send proof of insurance. Answer any MVD insurance notice right away rather than waiting for another letter.
According to ADOT, you can clear a suspension by showing Arizona liability insurance that was in effect at the time. If you can’t, you’ll pay a $50 reinstatement fee and show proof of current insurance. If you’re taking a car off the road, ADOT lets you “de-insure” it online through AZ MVD Now, which temporarily ends the insurance requirement for that vehicle. Don’t drive it on Arizona roads until it’s insured again. RateFrog’s guide to what happens when insurance lapses covers the broader risks.
Penalties for Driving Without Insurance in Arizona
A.R.S. 28-4135 sets these penalties, which are civil rather than criminal:
| Violation | Minimum civil penalty | Other consequences |
|---|---|---|
| First | $500 | Your license is suspended or restricted for three months |
| Second within 36 months | $750 | Your license, registration and plates are suspended for six months |
| Third or later within 36 months | $1,000 | Your license, registration and plates are suspended for one year, and you must file proof of financial responsibility |
The court sets the actual penalty, and these are minimums. If you show that you had the required coverage when you were cited, the citation is dismissed.
If a vehicle you own wasn’t insured in a crash, A.R.S. 28-4143 says your driver license and registration will be suspended 15 days after the suspension notice is mailed. You can stop it by proving, before the suspension takes effect, that the vehicle was covered on the date of the crash, or by requesting a hearing.
SR-22 Filings in Arizona
ADOT calls the SR-22 “future financial responsibility.” It can be required after alcohol- or drug-related revocations, DUI and implied consent suspensions, violations of the insurance law and unpaid court judgments. You generally keep it for three years, counted from the end of your suspension or revocation or from when you become eligible to reinstate. ADOT’s pages describe the start date differently, so confirm your end date with MVD before you cancel the filing. For an unpaid judgment, it lasts for the term of the judgment plus two years after it’s paid.
If you don’t own a car, ADOT says you’ll need a non-owner policy. RateFrog’s SR-22 guide explains how filings work, and its guide to non-owner car insurance covers those policies.
If You Can’t Find Coverage
The Arizona Automobile Insurance Plan covers eligible drivers who can’t get insurance in the regular market. According to AIPSO, applications go through licensed producers, and the plan’s phone number is (800) 227-4659.
How Arizona Insurers Set Rates
Arizona lets insurers use credit information, with limits. Under A.R.S. 20-2110, insurers generally can’t hold a lack of credit history against you, count medical collection accounts, or count a bankruptcy or a lien satisfaction that’s more than seven years old. Insurance scores can’t be based on income, gender, address, ZIP code, ethnic group, religion, marital status or nationality. If credit leads to an adverse decision, the insurer has to describe up to four main reasons.
Under A.R.S. 20-1631, an insurer also can’t cancel or refuse to renew your policy solely because of where you live, your age, race, color, religion, sex, national origin or ancestry. RateFrog’s guide to the factors that affect car insurance rates covers the rest.
Arizona’s Grace Period and Cancellation Rules
Arizona writes a grace period into law. Under A.R.S. 20-1632.01, you get at least seven days to pay any premium except the first, and the policy stays in force during that time.
Once a policy has been in effect for 60 days, or if it’s a renewal, the insurer can cancel only for reasons the law lists, such as nonpayment, fraud or a suspended license. Nonrenewal notices must be sent at least 45 days before the nonrenewal takes effect. DIFI’s cancellation page says you can write to the Director of Insurance within 10 days of receiving a cancellation or nonrenewal notice if you think it’s improper. RateFrog’s guide to car insurance grace periods explains how grace periods work in other states.
Is Arizona’s Minimum Coverage Enough?
A $15,000 property damage limit may not cover a newer car, and injury claims can pass $25,000 per person. If a claim is more than your limits, you could owe the rest. Because UM and UIM are optional in Arizona, it’s worth pricing them before you decline. RateFrog’s guide to how much car insurance you need can help you choose, and you can compare car insurance quotes at several coverage levels.
Where to Get Help
DIFI’s Consumer Services Division takes calls at (602) 364-2499. Its help page explains how to file a complaint. For registration or license suspensions, contact ADOT’s Motor Vehicle Division.
Frequently Asked Questions
Is Uninsured Motorist Coverage Required in Arizona?
No. Insurers must offer uninsured and underinsured motorist coverage in writing, but you can decline it. If you buy it, the minimum is 25/50.
What Happens If My Car Insurance Is Canceled in Arizona?
Your insurer reports it to MVD, which can mail you a notice of intent to suspend your plate and registration. You have 15 days from the mailing date to send proof of insurance. If you don’t, the plate and registration are suspended. To clear it, show insurance that was in effect at the time of the suspension, or pay a $50 reinstatement fee and show current insurance.
Can I Show Proof of Insurance on My Phone in Arizona?
Yes. Arizona law lets you display proof of insurance on a wireless device in the vehicle.
Does Arizona Have a Grace Period for Car Insurance Payments?
Yes. State law gives you at least seven days to pay any premium except the first, and the policy stays in force during that time.
Sources
- Arizona DIFI: Minimum Coverage
- Arizona DIFI: Cancellation and Nonrenewal
- A.R.S. 28-4135
- A.R.S. 28-4148
- A.R.S. 28-4149
- A.R.S. 28-4143
- A.R.S. 28-4084
- A.R.S. 20-259.01
- A.R.S. 20-1631
- A.R.S. 20-1632.01
- A.R.S. 20-2110
- ADOT: What Happens If I Don’t Get Insurance?
- ADOT: Clearing a Registration Suspension
- AIPSO: Arizona Automobile Insurance Plan
- Arizona DIFI: Consumer Help and Complaints