Arizona Minimum Coverage Car Insurance: Requirements and Costs (2024)

Arizona's minimum car insurance coverage has liability limits of 25/50/15. The average annual cost is $745 or about $62 monthly.

Updated: December 10, 2024

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Arizona requires a minimum of $25,000 bodily injury liability per person, $50,000 per accident and $15,000 for property damage liability. Since Arizona is an at-fault state, the driver responsible for an accident covers the damage. Meeting these minimum car insurance requirements is legally mandatory.

The state's average monthly cost of minimum coverage is about $62. Aside from considering the cheapest car insurance in Arizona, drivers should evaluate their needs and consider additional coverage if necessary.

TABLE OF CONTENTS

Arizona Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in Arizona
Cheapest Companies in Arizona for Minimum Coverage
Add-On Coverages in Arizona
Penalties for Driving Without Insurance in Arizona
FAQ

Why Trust MoneyGeek? We analyzed data from Quadrant Information Services and the Arizona Department of Insurance to get the most accurate cost data for various Arizona drivers.

These rates reflect the cost of minimum coverage car insurance requirements in Arizona as of December 2024.

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Arizona Minimum Coverage Car Insurance Requirements

In Arizona, the minimum car insurance coverage required to drive legally includes:

$25,000 for bodily injury liability per person
$50,000 for bodily injury liability per accident
$15,000 for property damage liability per accident

Arizona operates under a fault insurance system, where the driver deemed at fault for an accident is responsible for covering the damage through their insurance provider. Being in a fault state affects your premium because insurance providers consider the likelihood of paying out claims based on the fault assigned in accidents.

Insurance coverage protects you financially if you're at fault in an accident. You could be personally liable for costs exceeding your policy limits without adequate coverage.

ARE COLLISION AND COMPREHENSIVE COVERAGES REQUIRED IN ARIZONA?

Arizona doesn't mandate collision and comprehensive insurance as part of its minimum auto insurance requirements. However, lenders and leasing companies usually require these coverages to protect their financial interests in the vehicle you're financing or leasing. When you have a loan or lease on your car, collision insurance covers damage from accidents. Comprehensive insurance protects against non-collision events such as theft, vandalism or natural disasters.

Lenders typically require Arizona drivers with financed or leased vehicles to carry collision and comprehensive coverages. If you own your car outright, adding collision or comprehensive insurance is optional. It should be based on your need for financial protection against potential damage.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you're at fault in an accident	Your injuries
Damage to another person’s property if you're at fault in an accident	Damage to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased
	Repairs for weather-related accidents or if you were hit by an animal

The table reflects the Arizona state minimum car insurance requirements, including bodily injury and property damage coverage. Specific coverage details are governed by the terms of your personal insurance policy.

Average Cost of Minimum Coverage Car Insurance in Arizona

Age is among the most significant factors influencing the cost of minimum coverage car insurance. In Arizona, drivers aged 22 to 29 face the highest premiums, likely because they're less experienced and more prone to accidents than other age groups.

The table below presents Arizona's average minimum coverage cost by age group.


22-29	$928	$77
30-59	$745	$62
60 +	$745	$62

Cheapest Companies for Minimum Coverage Car Insurance in Arizona

The companies providing the most affordable minimum coverage auto insurance in Arizona are:

Mercury: $545 per year; $45 per month
State Farm: $563 per year; $47 per month

Saving on car insurance is important, but choosing the right coverage for your needs is equally crucial. Explore the best car insurance options in Arizona to find protection that fits your situation.

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Age Group:30-59


Mercury	$545	$45
State Farm	$563	$47
Progressive	$584	$49
Travelers	$592	$49
GEICO	$600	$50
Auto-Owners Insurance Co	$608	$51
Country Financial	$643	$54
Root Insurance Company	$649	$54
Allstate	$684	$57
Farmers	$720	$60
Iowa Farm Bureau	$723	$60
Hartford	$796	$66
Nationwide	$856	$71
CSAA	$1,179	$98
The General	$1,431	$119

Optional Add-On Coverages in Arizona

In Arizona, optional add-on coverages include uninsured/underinsured motorist coverage, collision coverage, comprehensive coverage, medical payments coverage and rental reimbursement. These coverages offer additional protection for circumstances like accidents with drivers who lack sufficient insurance, vehicle theft or damage from natural disasters.

Choosing the right add-ons to complement your state minimum coverage can safeguard your finances. To figure out how much car insurance you need, consider your circumstances and the risks you face on the road.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured motorist coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance	Damage to your vehicle if you're at fault or damage that exceeds policy limits
Personal injury protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers regardless of who's at fault	Vehicle damage or injuries to the other driver
Roadside assistance	Services like towing, flat tire changes and jump-starts when your car breaks down	Cost of parts or repairs needed after the tow
Gap insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen	Vehicle depreciation or overdue loan payments
Rental car reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event	Fuel, insurance or other rental extras
Collision coverage	Repairs to your car after an accident, regardless of fault	Damage due to theft, vandalism or natural disasters
Comprehensive coverage	Repairs to non-collision damage from events like theft, fire or hail	Damage from a collision or personal injuries
Towing and labor coverage	Towing and basic roadside assistance labor costs at the site of your vehicle's breakdown	More extensive repairs needed at a garage
Custom parts and equipment coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems	Original parts that came with your vehicle
Accidental death coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident	Non-accidental death or injuries
Classic car insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars	Regular use like your daily commute

Penalties for Driving Without Insurance in Arizona

The cost of a ticket for driving without insurance in Arizona varies, especially if it's not your first time being caught. For a first offense, the penalties include a fine and possible suspension of driving privileges. If caught again, the consequences grow stricter and may involve even higher fines.

Vehicle impoundment with associated fees: Your vehicle may be held somewhere, adding extra costs to retrieve it.
Vehicle registration suspension: The state may suspend your car's registration.
Driver's license suspension with a reinstatement fee: Your driving privileges may be removed for a period.
SR-22 certificate requirement: You could be mandated to carry this certificate as proof of future financial responsibility.

In Arizona, driving with at least the minimum coverage is required by law. Staying insured protects you, your vehicle and others on the road. Driving without insurance can lead to penalties that impact your finances and driving privileges. Stay legal to avoid these consequences.

What to Do if Your Policy Is Canceled

If your car insurance policy is canceled in Arizona, immediately stop driving and seek new insurance coverage to avoid the legal consequences of driving uninsured. Contact your insurance agent to understand why your policy was canceled and to explore if it can be reinstated or if you'll need to find a new provider. Maintain at least the minimum car insurance coverage as required by law.

The Arizona Department of Transportation (ADOT) will be notified of your lack of insurance through the state's electronic insurance verification system. If you continue to drive without insurance, you could face penalties, including fines, license suspension and vehicle impoundment.

To get new coverage after a cancelation, shop for insurance quotes from different companies. Arizona has no specific government program like TexasSure for drivers struggling to get insured. However, Arizona car owners may look into the Arizona Automobile Insurance Plan, which helps high-risk drivers get the required coverage.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in Arizona may have been canceled for several reasons:

Non-payment: Failing to pay your premiums on time can result in cancelation.
License suspension: If your driver's license is suspended, your policy may be canceled.
Fraud: Providing false information or committing fraud can lead to a policy being voided.
Too many claims: Filing too many claims in a short period might flag you as high risk, causing cancelation.
Moving out of state: Insurers can cancel your policy if you move to a state where they don't operate.

Maintaining your policy includes keeping your information up to date and driving responsibly.

FAQ: Arizona Minimum Coverage Car Insurance

Find answers to common questions about Arizona's minimum car insurance requirements here.

What is the minimum car insurance coverage in Arizona?

In Arizona, drivers must have at least $25,000 in bodily injury liability per person, $50,000 per accident and $15,000 in property damage liability. This minimum coverage meets the legal requirements to drive in Arizona but doesn't cover damage to your car. To protect yourself further, consider adding comprehensive or collision coverage. Speak with an insurance provider or check official resources to understand the costs and how to get the right coverage for your needs.

Why does Arizona require minimum automobile liability coverage for motorists?

Arizona requires minimum coverage auto insurance to ensure motorists can cover costs for damage or injuries they cause in an accident. This financial responsibility helps protect all road users by providing baseline compensation for losses. Having this coverage shows responsibility and reduces the risk of high out-of-pocket expenses after an accident.

Do you need comprehensive insurance in Arizona?

In Arizona, comprehensive insurance isn't legally required, but it's strongly recommended if you want to protect your vehicle from non-collision events like theft or natural disasters. This coverage goes beyond the state's minimum requirements and can save you from significant out-of-pocket expenses in case of unexpected damage.

What happens if you drive uninsured in Arizona?

Driving uninsured in Arizona can result in steep penalties. First offenses can lead to a fine of at least $500 and the suspension of driving privileges for up to three months. Subsequent offenses increase fines and suspension periods, with a third offense potentially leading to a minimum fine of $1,000 and a 12-month license and registration suspension. To avoid these consequences, maintain at least the state minimum coverage.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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