Car Insurance Requirements in Arizona (2025)
Arizona drivers need a minimum of $25,000 per person and $50,000 per accident in bodily injury liability and $15,000 in property damage liability.
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No matter where you live in the United States, one thing is almost certain: You’ll need car insurance by law. This is true whether you drive a brand-new car or a decades-old one.
But car insurance requirements vary by state, with some states requiring more auto insurance coverage than others. Understanding the requirements in your state can help ensure you adequately protect your vehicle and abide by state insurance law.1
If you’re planning a move to Arizona, here’s what to know about car insurance coverage requirements in the Grand Canyon State, and how to comparison shop for a policy that’s right for you.
Arizona car insurance requirements
Arizona minimum car insurance requirements are comparable to those of many other states. To be roadworthy, you’ll need bodily injury liability insurance and property damage liability insurance.
Here’s how each coverage type protects you. Note that the amount of coverage you’ll need, beyond Arizona’s minimum requirements, depends on your situation and preferences.
Bodily injury liability coverage
Arizona requires you to carry at least $25,000 per person in bodily injury liability coverage and $50,000 per accident. This type of coverage protects you if you’re responsible for a car accident that injures someone in the other vehicle.2
It covers costs like the injured party’s medical expenses, hospital stays, ambulance transport, and lost wages if they can’t work due to their injuries. It can also pay for legal fees if someone sues you after an at-fault motor vehicle accident.
Property damage liability coverage
To drive legally in Arizona, you’ll also need $15,000 in property damage liability insurance. Like bodily injury coverage, property damage coverage protects you financially if you’re responsible for an accident, but it covers you differently.
It can pay for damage to other cars or property you’ve hit. For instance, if you accidentally run over your neighbor’s mailbox or knock down a street sign, your property damage insurance can help foot the bill after you pay your deductible.
Arizona car insurance laws
If you live in Arizona, it’s important to be aware that the state operates on an at-fault insurance model. This means that if you’re found at fault for an auto accident, your car insurance company is responsible for covering the cost of any related bills, repairs, or legal costs.
Some states operate on a no-fault model, where each driver files a claim with their own insurer, but the at-fault model is more common.3
Do you need more than state-minimum coverage in Arizona?
Arizona only requires you to purchase liability insurance, which protects you if you’re responsible for an accident. But the minimum limits may not be enough protection, especially if you drive a newer car. For added peace of mind, you could opt for full-coverage insurance instead, which includes liability and these insurance types:
The cost of liability-only car insurance in Arizona
Liability-only car insurance costs an average of $94 per month for Arizona drivers. It covers you if you’re responsible for an accident and injure someone else or damage their vehicle or property. This type of coverage is a requirement in Arizona.
If you have an old car, you might consider liability-only insurance if your vehicle value is less than a couple thousand dollars. In this case, the cost of full coverage might outweigh its value.
Here’s a look at average liability coverage costs in Arizona by insurance company:
The cost of full-coverage car insurance in Arizona
Full-coverage car insurance costs $158 per month in Arizona, on average. A full-coverage auto policy generally includes collision, comprehensive, and liability insurance. But you can also get other optional coverages, like uninsured/underinsured motorist insurance, gap insurance, and more.
Full coverage costs more than liability-only coverage. But the additional protection full coverage provides could be worth the higher insurance rates, depending on your situation.
For example, if you drive a newer car that incurs significant damage in an accident you cause and you carry only the minimum liability coverage, you’ll need to pay for all repairs out of pocket. This could amount to thousands of dollars in unexpected expenses.
Here’s what Arizona drivers pay for full-coverage insurance with different companies:
Penalties for driving without proof of insurance in Arizona
If you’re caught driving without insurance in Arizona, you’ll incur some pretty harsh penalties, including losing your driver’s license for a set period. Here’s a look at the consequences for first and subsequent offenses:
First offense: Driver’s license, registration, and plate suspension for three months; $500 fine; possible SR-22 certificate of financial responsibility
Second offense: Driver’s license, registration, and plate suspension for six months; $750 fine; possible SR-22 certificate of financial responsibility
Third offense: Driver’s license, registration, and plate suspension for one year; $1,000 fine; possible SR-22 certificate of financial responsibility
Optional car insurance coverages to consider
If you want additional protection beyond what the minimum requirements provide, you can also get a few optional types of auto insurance coverage in Arizona. Here are some insurance products you might consider adding to your auto policy:
Arizona car insurance requirements FAQs
If you’re still curious about Arizona’s car insurance requirements, here’s some additional information about coverage.
Does Arizona require car insurance?
Yes. The Arizona Department of Insurance requires drivers to have a minimum amount of bodily injury and property damage liability insurance. You must have $25,000 per person and $50,000 per accident in bodily injury coverage, as well as $15,000 of property damage coverage per accident.
Do you need car insurance to register a car in Arizona?
You won’t need to provide proof of insurance when you register your car in Arizona. But you must submit your insurance information to the state within 30 days of receiving your initial registration.
Does insurance follow the car or the driver in Arizona?
Car insurance follows the car in Arizona, not the driver. So if your teen hits the open road in your vehicle and runs over a mailbox, your insurance can cover repair costs. But you’ll need to pay any applicable deductible first.
Can you have out-of-state car insurance in Arizona?
If your car is registered in Arizona, you’ll need insurance coverage from a company that serves the state. Arizona law prohibits out-of-state insurance coverage if you live in the state.
How does car insurance work in AZ?
Car insurance in Arizona works as it does in most other states. If you’re in an accident, your insurance or the other party’s insurance can compensate you for the cost of things like medical bills, car repairs, and other damages. It can also protect you financially if you accidentally hit something like a road sign or mailbox.
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