Insurance Center

The Arizona Motor Vehicle Division (MVD) wants to ensure that everyone on its roads is safe and protected. For that reason, it requires that all vehicles, including motorcycles, mopeds, and golf carts, be covered with liability insurance from a company that is authorized to provide the service in Arizona.

Subsequently, it is important to contact your insurance company to update your coverage if you have recently moved to the state. The insurance guidelines cover both people and property that are damaged in accidents.

The Minimum Requirements

For bodily injury liability, one person must be insured for $15,000 while two people must be insured for $30,000. In terms of property damage, there is a $10,000 minimum coverage requirement.

The state takes the requirement very seriously, so peace officers will request proof of insurance every time you are pulled over for a traffic violation or involved in an accident. The MVD will request it when you register your automobile.

Further, your insurance company is required to inform the MVD if you cancel or fail to renew your liability coverage. If the MVD receives such a notice, it will contact you to verify that you have current insurance.

Penalties for Not Maintaining Insurance

If you are not able to verify that you have applicable liability insurance, you could see your vehicle registration or driver license suspended, situations that will accompany both short-term and long-term monetary penalties. The former will come in the form of reinstatement fees, while the latter will probably involve the costly maintenance of an SR22 form for three years.

De-Insured Vehicles

However, it is not necessary to insure vehicles that are not in use on the roadways for reasons such as storage or restoration. To apply for permission not to insure your out-of-use vehicle, you can submit an application online.