Understanding Liability Insurance in Arizona: What You Need to Know
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Arizona, like most other states, has specific car insurance requirements, which include liability coverage. Liability insurance in Arizona protects drivers against having to pay for expenses out of pocket if they are at fault for an accident.
Read our guide to Arizona liability insurance to learn about Arizona car insurance requirements and how to choose the best policy for you.
Overview of Liability Insurance
Liability insurance provides coverage for cases of financial responsibility. If you are found to be at fault for an accident, your insurance company will provide coverage for expenses related to other people’s injuries and property damage.
Liability coverage typically offers different amounts of coverage for different circumstances. When you purchase a policy, you will have three coverage limits: one for bodily injury to one person, another for bodily injury to two or more people, and a third limit for property damage coverage.
Liability insurance does not cover your own expenses if you are hurt or have damage to your vehicle after an accident. You would need to file such a claim under another coverage type, such as collision coverage.
Minimum Coverage Requirements in Arizona
Liability car insurance in Arizona must be at least 25/50/15. This means you must purchase at least $25,000 bodily injury liability for one person, $50,000 bodily injury liability for two or more people, and $15,000 property damage liability.
Bodily injury liability will cover medical expenses for injuries sustained by other drivers, passengers, and pedestrians. Property damage liability will cover damages to another person’s property.
Review the insurance requirements of your state:
Understanding Different Coverage Types
Arizona minimum requirements for car insurance also include uninsured/underinsured motorist coverage. This will provide coverage for your own medical bills and property damage if an at-fault driver doesn’t have enough coverage to pay for your expenses. You must have at least $25,000 per person and $50,000 per accident.
In addition to required coverage types, you might also purchase policies such as personal injury protection (PIP) that will cover your medical expenses regardless of who is at fault. Other types of coverage include collision coverage and comprehensive coverage. The state may not mandate these, but your lender might require them if you take out an auto loan.
Consequences of Driving Without Insurance
Car insurance is a legal requirement for driving in Arizona. If the authorities catch you driving without a valid car insurance policy with the proper coverage limits, you can face several consequences. This starts with a fine of up to $1,000. Your first offense is a $500 fine, a second offense within 36 months is $750, and a third within 36 months is $1,000.
You can also have your license, registration, and license suspended for up to a year, and you may need to pay fees to reinstate any of these. In some cases, you might have to provide an SR-22 certificate, which indicates that you are a high-risk driver, often making your car insurance more expensive.
In addition to the legal consequences of not having auto insurance in Arizona, you may also be responsible for covering expenses out of pocket if you are at fault for an accident without insurance.
Arizona as a Fault State
Arizona is a fault state, also known as a tort state. This means at-fault drivers assume financial responsibility for injuries to other parties and property damage to other people’s property. If you are found to be at fault for an accident, your insurance company will have to cover related expenses.
In cases where your insurance company does not cover all expenses (for example, if the medical costs exceed your coverage limits), injured parties or parties with property damage have the right to sue you for payment.
Assessing Adequate Protection
Choosing your insurance coverage can be confusing if you’re not sure what type is best for you. It depends on your financial situation and risk factors. To get basic coverage and make sure you can drive legally, you must have at least the minimum coverage requirements. The minimum can be an adequate option for those looking for cheap car insurance.
If you have a loan on your vehicle, your lender may also require you to purchase collision and comprehensive coverage, which can be more expensive but offers more protection.
Weigh the risk of having to pay for expenses out of pocket against the risk of having to pay more expensive monthly premiums. If you have a large amount of savings, you may be able to cut back on your coverage. However, more coverage might be better if you can't afford to pay for accident expenses by yourself.
Looking for the cheapest liability insurance in Arizona? Car insurance rates can vary by ZIP code, meaning your insurance might cost more or less than policies in other cities. Using an online comparison tool to review policy options from multiple companies can help you find the best policy at the best price. Get started comparing quotes with EverQuote for free.