Arizona Car Insurance

Every Arizona driver must carry minimum liability insurance — or post an alternative form of financial responsibility — on every registered vehicle. Arizona raised the minimum from 15/30/10 to 25/50/15 in July 2020, putting it more in line with neighboring states but still below the national median.

The 25/50/15 minimum

The Arizona minimum auto liability requires:

• $25,000 bodily-injury liability per person.
• $50,000 bodily-injury liability per accident (total to all injured parties).
• $15,000 property-damage liability per accident.

These are minimums, not recommendations. With Arizona urban-area medical and vehicle costs, most carriers recommend at least 100/300/100 to avoid exposure on a typical multi-vehicle accident. Drivers who finance or lease a vehicle are usually required by the lender to add comprehensive and collision on top of the liability minimum.

Alternatives to insurance

Arizona allows three alternative forms of financial responsibility besides standard insurance:

• Cash deposit — A $40,000 deposit with the State Treasurer.
• Surety bond — A $40,000 bond from a state-authorized insurance carrier.
• Certificate of self-insurance — Available to fleet operators with 26 or more vehicles registered in Arizona.

For nearly every individual driver, standard auto insurance is the simpler and cheaper path.

Electronic insurance verification

Arizona MVD verifies insurance electronically through carrier reporting. When a policy is issued, canceled, or non-renewed, the carrier reports the change to MVD within 30 days. If MVD's database shows a vehicle without active coverage, the registered owner receives a notice and has 30 days to provide proof of current insurance. Failure to respond results in:

• Suspension of the vehicle's registration.
• Suspension of the owner's driver license.
• An SR-22 filing requirement for the next 3 years on reinstatement.
• Reinstatement fees — $50 for the first lapse, $100 for the second, $200 for the third or more.

See Arizona suspended license for the full reinstatement walkthrough.

SR-22 financial-responsibility filings

An SR-22 is a certificate filed by an Arizona-licensed insurer with MVD to confirm the named driver carries the 25/50/15 liability minimum. It is required after most major license actions, including:

• A DUI conviction (3 years from reinstatement).
• A no-insurance lapse suspension (3 years).
• An at-fault accident with no insurance.
• An unsatisfied civil judgment from a vehicle accident.

The SR-22 is filed by the carrier, not by the driver. Carriers typically charge $15-$25 to file the certificate on top of the regular policy premium. The certificate must remain on file continuously for 3 years — any cancellation, lapse, or non-renewal during that period is reported to MVD and immediately suspends the license.

Carriers and the high-risk market

Most major national insurers write SR-22 policies in Arizona, including State Farm, Geico, Progressive, Allstate, USAA (eligible members), and Nationwide. Drivers who don't qualify for standard market policies after a DUI or major suspension move to non-standard carriers like Mendota, Acceptance, Bristol West, and Direct General. Premiums for SR-22 policies typically run 50% to 200% higher than the same driver's prior standard rate, with the largest jumps coming after a first DUI conviction.

Uninsured motorist coverage

Arizona requires carriers to offer uninsured-motorist (UM) and underinsured-motorist (UIM) coverage at policy issuance, but drivers may decline both in writing. Arizona has one of the higher uninsured-driver rates in the country (estimated 11-13%), and most safety advocates recommend keeping UM/UIM at the same level as the liability limits chosen.

Out-of-state drivers and rental policies

Drivers visiting Arizona must carry insurance that meets the minimum of either their home state or Arizona's 25/50/15 — whichever is higher. Rental-car coverage purchased at the counter satisfies the requirement. Policies from any state are recognized for liability purposes, but a driver who establishes Arizona residency must transition to an Arizona-licensed carrier within 30 days — the same window as the Arizona license transfer.