Our attorneys use their knowledge of the insurance industry to fight for you


Arizona Car Insurance Laws

Understanding and obeying Arizona’s car insurance laws are your responsibilities as a driver. As is the case in all 50 states, proof of financial responsibility in the form of car insurance is a requirement in Arizona before you can register a motor vehicle. Your car insurance policy must meet certain minimum requirements, as outlined by state law. If you get involved in a car accident in Arizona, this insurance will help you pay for the losses of others.

Required Car Insurance in Arizona

Every motor vehicle operator in Arizona must have proof of insurance. The car insurance purchased must meet at least the minimum legal requirements, although it is possible to purchase higher amounts for greater coverage in the event of a car accident. Car insurance mandates change from state to state. Arizona follows a 25/50/15 insurance rule. This means that the required amounts of car insurance are:

  • $25,000 in bodily injury liability insurance per person
  • $50,000 in bodily injury liability insurance per accident
  • $15,000 in property damage liability insurance per accident

These are just the minimum required amounts of car insurance coverage. They pay for the other driver’s medical bills and property repairs after an at-fault accident. They do not cover the policyholder’s losses. Arizona drivers also have the right to purchase additional types of insurance to pay for their own bills after an accident, such as collision coverage, comprehensive coverage, and uninsured or underinsured motorist insurance.

Penalties for Driving Without Insurance

If you get pulled over by law enforcement in Arizona and do not have proof of insurance, you will most likely have your driver’s license or vehicle registration suspended. If you had insurance but did not have your insurance card to show the officer, you may need to bring proof of insurance to the courthouse to resolve the matter.

If you don’t have insurance, you will need to purchase car insurance and file proof of financial responsibility with the Arizona Motor Vehicle Department to restore your driving privileges. In addition to legal trouble, you could also end up paying out of pocket for a car accident that you cause if you don’t have insurance. This can mean thousands of dollars being assessed against you. Having adequate insurance in Arizona protects you in more ways than one.

How Does an Arizona Car Insurance Claim Work?

After a motor vehicle accident in Arizona, all injured parties will seek financial compensation from the insurance provider of the at-fault driver or party. This is how Arizona’s fault-based car insurance law works. This fault law is why all drivers must carry minimum amounts of liability insurance. No-fault states, on the other hand, require personal injury protection (PIP) or MedPay coverage to pay for the driver’s own losses after a crash, regardless of fault.

In Arizona, before you can recover financial benefits from another driver’s insurance carrier, you must prove that he or she is at fault for your crash. This requires evidence, such as a copy of your police report. If you are found to be partially at fault for the accident, this can reduce your financial recovery. However, it will not bar you from obtaining compensation in Arizona.

What if Your Car Accident Claim Gets Denied?

There is a chance that a car insurance company will deny your claim after a car accident in Arizona. In this scenario, you should contact a Phoenix auto insurance bad faith attorney right away for assistance. Insurance bad faith means that the car insurance company knowingly or intentionally mishandled your claim in an attempt to save money on a payout.

If there is evidence of bad faith, an attorney can help you go up against the car insurance company to demand fair financial compensation not only for your car crash but also for the insurer’s negligent mishandling of your claim. Call Surrano Law Offices at (602) 264-1077 to learn more about auto insurance bad faith during a free consultation.