Arizona roads are busy, fast-moving, and unpredictable. Whether you’re commuting along I-10, driving through Phoenix neighborhoods, or taking the family on a weekend trip, having the right auto insurance coverage is essential. Arizona has strict laws regarding liability, minimum coverage, uninsured drivers, and financial responsibility, and failing to meet these standards can lead to license suspension, fines, and significant financial hardship after an auto accident.
This guide explains Arizona car insurance requirements, outlines what every driver needs to stay compliant, and shows how the experienced accident lawyers in Phoenix at Harris Injury Law help clients with uninsured and underinsured motorist disputes.
Understanding Arizona’s Auto Insurance Laws
Minimum Liability Requirements Under Arizona Law
The Arizona Department of Insurance and Financial Institutions (DIFI) explains that the state requires all Arizona drivers to carry basic liability coverage. Under Arizona law, the minimum coverage limits, updated in 2020, include:
- $25,000 for bodily injury liability for one person
- $50,000 for bodily injury for two or more people
- $15,000 for property damage liability
This is often referred to as Arizona’s minimum or minimum coverage limits.
These levels help pay for injuries or property damage caused when the insured driver is the at fault driver in a crash.
Why Liability Insurance Matters
Liability insurance protects the other party, not you. If you cause an auto accident, this coverage pays for:
- Medical expenses for injured victims
- Lost wages
- Property damage
- Other financial losses linked to the crash
Failing to carry the required liability coverage can lead to penalties under Arizona’s insurance laws, including:
- Mandatory license suspension
- Vehicle registration suspension
- Fines
- Mandatory SR-22 (proof of financial responsibility)
What Liability Coverage Does Not Cover
Liability insurance does not protect your vehicle or pay for your own injuries. That requires optional coverages such as:
Collision Coverage
Covers repairs to your own vehicle after a crash, regardless of fault.
Comprehensive Coverage
Comprehensive coverage protects against non-crash events like:
- Theft
- Vandalism
- Fire
- Flood
- Falling objects
- Hail
- Animal collisions
Medical Payments Coverage (MedPay)
Helps pay immediate medical expenses for you and your passengers, regardless of fault.
According to DIFI, MedPay can help with:
- Emergency room care
- Ambulance bills
- X-rays
- Additional medical bills
This coverage can be extremely helpful, even in minor accidents.
Gap Insurance
If your car is financed, gap insurance helps lenders protect the gap between the car’s actual cash value and the loan balance.
Roadside Assistance
While not required by Arizona auto insurance laws, this optional add-on provides towing, battery jump-starts, tire changes, and more.
Arizona Drivers and the Importance of Adequate Protection
Arizona’s roads see thousands of motor vehicle collisions every year. According to the Arizona Department of Transportation (ADOT), serious accidents remain a major concern statewide. With so many risks on the road, carrying only minimum coverage often isn’t enough.
Why Many Drivers Choose Higher Liability Limits
Arizona’s minimum coverage may not cover:
- Significant medical expenses
- Long-term rehabilitation
- High-cost vehicle repairs
- Multiple injured parties
- Accidents involving commercial vehicles
Choosing higher liability limits provides adequate coverage and offers broader protection against lawsuits arising from severe collisions.
Uninsured and Underinsured Motorist Coverage (UM/UIM)
Arizona law requires insurance companies to offer uninsured motorist coverage (UM) and underinsured motorist coverage (UIM), though drivers may decline it in writing under A.R.S. §20-259.01.
Uninsured Motorist Coverage (UM)
Protects you when an uninsured driver causes a crash. It helps pay for:
- Medical bills
- Lost wages
- Pain and suffering
- Certain out-of-pocket losses
Underinsured Motorist Coverage (UIM)
Protects you when the at fault driver has insurance but their liability limits are too low to cover your losses.
UM/UIM is essential because:
- Many drivers don’t carry adequate coverage
- Medical expenses can easily exceed minimum coverage limits
- Uninsured drivers are more common than many people realize
Harris Injury Law regularly helps clients navigate disputes involving uninsured motorist coverage, underinsured claims, and insurance companies that refuse to pay.
Penalties for Uninsured Drivers in Arizona
Driving without insurance is a serious violation.
Under Arizona law, penalties may include:
- License suspension
- Registration suspension
- SR-22 filing for an extended period
- Mandatory fees to reinstate privileges
For repeat violations, the consequences escalate significantly.
Drivers must maintain continuous coverage to avoid these penalties.
How Insurance Companies Evaluate Claims
When a driver files a claim, the insurance company evaluates:
- Fault
- Injuries
- Property damage
- Insurance policy terms
- Whether the driver has continuous coverage
- If the incident involves an uninsured motorist
Insurance providers may attempt to reduce payments, claim exclusions, or deny coverage entirely. This can leave victims struggling with healthcare costs, vehicle repairs, and other losses.
This is where experienced accident lawyers in Phoenix can help.
How Harris Injury Law Helps With Car Insurance Claims
Advocacy for Uninsured and Underinsured Motorist Claims
Our firm assists clients when their own insurer refuses to provide uninsured motorist protection or underinsured motorist benefits.
We assist Arizona drivers:
- Challenge denied claims
- Dispute liability findings
- Navigate coverage limits
- Pursue compensation for medical expenses and lost wages
- Interpret complex insurance requirements
- Understand rights under Arizona auto insurance laws
Handling At-Fault Disputes
When an insurance provider incorrectly labels you the at fault driver, our attorneys help:
- Gather evidence
- Review police reports
- Analyze crash reconstruction
- Challenge adjuster conclusions
- Protect your right to seek compensation
Helping Clients Understand Their Policies
Many drivers are surprised to learn that their auto insurance coverage has exclusions or that their policies do not include comprehensive and collision coverage.
We help clients understand policy terms, including:
- Liability limits
- Coverage requirements
- Optional coverage (MedPay, gap insurance, UM/UIM)
- What is required for financed vehicles
Arizona Drivers: Why Minimum Coverage Isn’t Always Enough
Even though Arizona law requires minimum liability limits, they often fall short in real-world crashes.
Consider a typical scenario:
- A driver causes an auto accident
- Two passengers suffer injuries
- Combined medical bills total $80,000
- The at-fault driver’s insurance pays only $50,000
Without underinsured motorist protection, the injured victims may be responsible for the rest, or forced into litigation to recover damages.
This is why adequate protection matters, especially when many drivers carry minimum coverage.
Common Questions About Arizona Auto Insurance Requirements
What is Arizona’s minimum insurance requirement?
At least:
- $25,000 bodily injury (one person)
- $50,000 bodily injury (two or more people)
- $15,000 property damage
Do I need uninsured motorist coverage?
It’s optional, but highly recommended for financial security.
What happens in an at-fault accident?
Your liability insurance pays for injuries and property damage, subject to your coverage limits.
What is the penalty for no insurance?
Suspended license and vehicle registration, plus fines.
Is MedPay required?
No, but it can help cover immediate medical expenses.
About Harris Injury Law
Harris Injury Law provides a personalized approach
Harris Injury Law helps Phoenix residents navigate insurance claims, complex liability disputes, and coverage issues after car accidents, truck accidents, and work-related vehicle incidents.
We provide:
- Direct access to Attorney Jason Harris
- Availability 24/7
- Contingency fee arrangements are subject to the terms of the written fee agreement. Costs may still apply.
- Support with uninsured and underinsured motorist claims
- Assistance with personal injury and workers’ compensation overlap cases
If you’re facing difficulties with insurance companies or need help understanding coverage requirements, our team is here to help.
About Attorney Jason A. Harris
Jason A. Harris is a seasoned personal injury lawyer with over 16 years of experience handling:
- Car accident claims
- Uninsured motorist disputes
- Underinsured motorist protection cases
- Complex injury matters involving long-term medical care
He is recognized by clients for his:
- Strategic case review
- Clear communication
- Guiding clients through Arizona’s auto insurance laws
- Helping victims pursue compensation after serious accidents.
He brings a rare dual background in personal injury law and workers’ compensation, enabling him to provide comprehensive support for injured clients.
Schedule a Free Consultation Today
If you’ve been involved in a crash, are facing an unfair insurance dispute, or have questions about Arizona car insurance requirements, the team at Harris Injury Law can help.
Call or text (480) 800-HURT for a free consultation.
