Commercial Auto Insurance Minimum Requirements in Arizona

Determine the Required Amount of Coverage

When you meet with an insurance provider to discuss commercial or personal insurance, you'll need to provide the following information:

• Who owns the vehicle(s)

• Weight of the vehicle(s)

• Usage of the vehicle(s)

• Liability limits requirements

Keep in mind that the more coverage you have, the better you're protected from financial risks. The state, however, requires only a minimum amount of coverage as follows:

• $15,000 bodily injury coverage for one person in one accident

• $30,000 bodily injury coverage total per accident

• $10,000 property damage coverage per accident

The amounts above are the minimums per vehicle. Most insurance agents advise business clients to get auto liability coverage for $1 million, or suggest a bare minimum of $500,000.

If you need more information about the choice between personal and commercial auto liability coverage, you can call the MVD to discuss your specific situation.

Purchase a Commercial Policy

Once you've decided to get commercial auto insurance, you'll have a wide range of choices when it comes to a provider. You can find many insurance companies that specialize in commercial insurance only, and many popular national insurance companies cover both personal and commercial policies.

Proof of Insurance and Financial Responsibility

The MVD has partnered with other state agencies to streamline the reporting system for drivers. All insurance providers should notify the MVD about new policies, non-renewals, and cancellations within 30 days.

However, it's still a good idea to confirm with your insurance agent that the information has been sent. Or, be sure and send it in to an MVD office or mail it to:

• Motor Vehicle Division

• Mail Drop 558M

• Insurance Unit

• P.O. Box 2100

• Phoenix, AZ 85001-2100

Penalties for Failure to Maintain Financial Responsibility

If you don't keep insurance on your business vehicles, the MVD will suspend registration for three months on each uninsured vehicle, and you could possibly find yourself with a driver's license suspension as well. Carrying no proof of insurance is a big mistake. The penalties and fines, per vehicle, are as follows:

• First violation―$500 fine and registration suspension for at least three months.

• Second violation―$750 fine and registration suspension for at least six months.

• Third and subsequent violations―$1000 fine and registration suspension for at least one year.

To clear a suspension, you need to:

• Provide proof of insurance for the period of the alleged coverage lapse, or

• Submit an SR-22 form, which is a document certifying that you now have the required liability coverage, and pay a $50 reinstatement fee. The SR-22 form must be from an insurance provider authorized to do business in Arizona, and it must be held on file at the MVD for three years.