Car Insurance in Arizona
Arizona Car Insurance
Arizona requires that all drivers show financial responsibility for damages that may be incurred in an accident.
This can take one of two forms:
- Proof of liability insurance.
- Certificate of deposit of $40,000 assigned to the Office of the Arizona State Treasurer.
You must show this proof as soon as you become a resident of Arizona. AZ residency is established by any one of the following:
- Working in Arizona.
- Registering to vote in Arizona.
- Being in Arizona for at least 7 months in a calendar year.
- Paying in-state tuition for yourself or your children.
- Owning an Arizona-based business with in-state vehicles.
- Owning a business that transports people or materials within AZ.
In addition to liability insurance, Arizona car insurance carriers offer optional types of coverage, as well as various discounts to save you money.
Proof of Financial Responsibility Requirement in Arizona
In Arizona, you must prove financial responsibility, meaning you must show you can pay for damages in the case of an accident.
Most people choose to do so by showing proof of Arizona car insurance; however, the state of AZ will accept a payment of $40,000 as proof of this responsibility. If you are caught driving without proof, for your first offense you could face:
- A minimum $500 fine.
- License/registration suspension for 3 months.
Subsequent violations will result in higher and more serious penalties.
If you choose to prove financial responsibility through auto insurance, you must carry liability insurance.
Liability insurance helps pay for damage to others' property and injuries sustained by other drivers in an accident for which you are found at fault.
The required amounts of liability coverage in Arizona are:
- Bodily injury coverage:
- $15,000 per person.
- $30,000 total per accident.
- Property damage coverage:
- $10,000 per accident.
You can purchase more extensive auto insurance coverage by increasing your limits and adding optional coverage.
As mentioned above, you can opt out of insurance by keeping $40,000 in a certificate of deposit (CD) account assigned to the Office of the Arizona State Treasurer.
Contact the Arizona State Treasurer's office at (602) 542-7800 for more information on how to open an account.
Optional Car Insurance in Arizona
Arizona car insurance agents also offer a variety of optional insurance coverage types that provide further protection.
Common optional car insurance coverage types include:
- Collision coverage: Pays for damage to your vehicle that you cause.
- Comprehensive coverage: Pays for damage to your car caused by external factors like weather, theft, or wildlife.
- Uninsured & underinsured motorist coverage: Pays for damage or injury caused by drivers without auto insurance or whose insurance limits do not cover your costs.
- Medical payments coverage: Provides additional coverage to pay medical expenses.
- Rental reimbursement coverage: Reimburses you if you need to rent a car after an accident.
- Full glass coverage: Pays for repairs and replacements to your windshield and other glass.
NOTE: If you are financing or leasing your car, you may be required to buy collision coverage and comprehensive coverage.
AZ Proof of Insurance
You must show proof of insurance when:
- You register your car in AZ.
- You are stopped by a police officer.
- You are involved in a car accident.
Accepted forms of proof of insurance include:
- An insurance card from your Arizona car insurance company.
- A copy of your auto insurance policy.
- An image of your insurance card on a mobile device.
Insurance Violations and Penalties
If you drive without car insurance in AZ, your driver's license and vehicle registration can be revoked.
The Arizona Department of Transportation (ADOT) is notified electronically of suspended, canceled, and non-renewed auto insurance policies and will contact you if your insurance is no longer valid.
If your AZ auto insurance has been suspended or canceled in error:
- Contact the Arizona Department of Insurance in writing within 10 days to object to the cancellation.
- Send your letter by mail to:
Director of Insurance
State of Arizona
Department of Insurance
100 N. 15th Avenue
Phoenix, AZ 85007
If you do not have Arizona car insurance and your driver's license and/or car registration are revoked or suspended, see the Suspended AZ Driver's License section.
Reinstating a Driver's License and/or Registration
If your AZ license and registration have been suspended or revoked for failure to have car insurance, ADOT will require:
- A reinstatement fee:
- Suspended license: $10 plus an application fee.
- Revoked license: $20 plus an application fee.
- An application fee:
- 16 to 39 years old: $25.
- 40 to 44 years old: $20.
- 45 to 49 years old: $15.
- 50 years old or older: $10.
- Proof of future financial responsibility.
- SR-22 certification.
SR22 Certification in Arizona
An SR22 certification is the most common proof of future financial responsibility.
The SR-22 is required to reinstate an AZ driver's license and/or vehicle registration after revocation or suspension for the following violations:
- Failing to have minimum liability coverage.
- An alcohol or drug violation, e.g., DUI.
If you're required to have an SR-22, your auto insurance company must file it with ADOT Motor Vehicle Division, usually for 3 years.
An SR-22 form can be expensive, and the longer you need one, the more it costs. The best way to avoid this requirement is by maintaining coverage and driving safely.
AZ Car Insurance Regulation
Car insurance in Arizona is regulated by the Arizona Department of Insurance.
The Department of Insurance can help consumers with auto insurance questions or concerns and includes a fraud investigation unit.
Consumer Assistance in AZ
If you have an issue or concern with your AZ car insurance company, the Arizona Department of Insurance recommends that you first contact your car insurance provider with your concerns.
If you are dissatisfied with the resolution offered by your auto insurance company, you can then ask the Department of Insurance to investigate.
You can contact the Arizona Department of Insurance by mail or by phone:
- By mail:
Consumer Services Division
Arizona Department of Insurance
100 N. 15th Avenue.
Phoenix, AZ 85007
- By phone: (800) 325-2548.
Include all the relevant facts of your auto insurance concern when contacting the Department of Insurance.
Reporting Insurance Fraud in AZ
Fraud costs insurance companies money, which can result in increased premiums for everyone.
Insurance fraud can include:
- Filing false claims.
- Forging insurance documents.
- Selling insurance without a license.
If you suspect car insurance fraud in Arizona, you can report it to:
- The Arizona Department of Insurance Fraud Unit: (602) 364-2140.
- The National Insurance Crime Bureau: (800) TEL-NICB ((800) 835-6422)
The NICB also accepts reports by text. Text “FRAUD" to TIP411.
What are Arizona Car Insurance Rates?
Arizona car insurance rates, or premiums, are based on many factors, including:
- Credit report.
- Driving record.
- This could include the driving records of other drivers who live with you.
- Your car's:
- Usual location.
These factors can increase or decrease your Arizona car insurance rates.
Credit Reporting and Auto Insurance
Arizona car insurance companies are legally allowed to use your credit report to help determine the insurance rate they quote you.
Most auto insurance agencies will use an insurance score, which is based on your credit, to determine your car insurance rates.
A poor insurance score can result in being denied coverage or having insurance coverage terminated.
Traffic violations can raise your insurance rates because they appear on your driving record. Violations that appear in your record include but are not limited to:
- DUI/DWI violations.
- Reckless driving.
- Leaving the scene of an accident.
- Failing to stop at a signal.
Your auto insurance company may not look at violations on your record that occurred 40 months ago or longer.
Keeping a clean driving record can result in cheaper insurance rates.
Arizona Car Insurance for High-Risk Drivers
If you are unable to find an Arizona car insurance agent who will cover you, Arizona has an assigned risk plan that insures high-risk drivers.
If you are a high-risk driver, an assigned risk plan makes sure that you can get the required minimum coverage, even when insurance companies turn you down.
The rates for assigned risk plans are high, so you should shop around as long as possible before seeking coverage through this avenue.
You can apply for coverage under the Arizona Automobile Insurance Plan (AAIP) through any licensed auto insurance agent or broker.
AZ Car Insurance Discounts
Many Arizona auto insurers offer discounts that can help you get the cheapest rate on your car insurance.
The discounts offered and the amount you will save varies from company to company.
When making car insurance comparisons, ask about possible rate discounts for:
- Multiple vehicles on one policy.
- Multiple policies with one insurance company.
- Accident free drivers.
- Good grades for student drivers.
- Safety features in your car, such as air bags.
- Anti-theft features in your car.
To get affordable rates in Arizona, be sure to compare car insurance quotes from multiple insurance companies, consider a higher deductible, and drive safely.
What are the Most Stolen Cars in Arizona?
Driving a car that is targeted for theft can increase your premium rates.
The following is a list of the most stolen cars in Arizona for 2013 according to www.nicb.org:
- Honda Accord.
- Honda Civic.
- Chevrolet Pickup (Full Size).
- Ford Pickup (Full Size).
- Dodge Pickup (Fill Size).
- Nissan Altima.
- Nissan Sentra.
- Toyota Camry.
- Jeep Cherokee/Grand Cherokee.
- Nisan Maxima.
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
- Washington DC