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Arizona Auto Insurance Requirements

Posted on May 10, 2021 in

Automobile insurance pays for the damage when a driver causes a car accident. It provides a way for drivers to afford the medical bills and property repairs connected to a crash. In Arizona, every motor vehicle operator is required to purchase and maintain a certain amount of auto insurance. Failing to do so can result in penalties and personal financial responsibility for a car crash.

Arizona Auto Insurance Requirements

What Are the Required Amounts of Auto Insurance in Arizona?

Arizona is a fault-based car insurance state. This means that after a collision, the driver or party at fault for causing the crash has to pay for damage. The required automobile insurance, therefore, is liability insurance to pay for others’ losses. Arizona uses what is referred to as 15/30/10 insurance:

  • $15,000 minimum per person in bodily injury liability insurance
  • $30,000 minimum per car accident in bodily injury liability insurance
  • $10,000 minimum in property damage liability insurance

These types of insurance will pay for the other person’s losses after a crash, not the insured driver. For a policyholder to receive coverage for his or her own bills, he or she must purchase additional insurance, such as collision and comprehensive insurance. In a no-fault state, on the other hand, all drivers carry personal injury protection (PIP) insurance to pay for their own losses, regardless of fault for the crash.

What Are the Penalties for Driving Without Insurance?

If a driver operates a motor vehicle without the adequate types and amounts of car insurance in Arizona – or alternative proof of financial responsibility – that driver can face penalties. Failing to obtain the mandatory insurance is penalized with a fine and/or the suspension of your driver’s license, as well as the possible suspension of your vehicle registration.

If you get caught driving without insurance, you will need to file proof of financial responsibility with the Arizona Motor Vehicle Department to get your driving privileges back. The cost of purchasing insurance, however, can pale in comparison to how much you may have to pay if you cause a car accident while uninsured. Rather than relying on your insurance company to pay for expensive medical bills and property repairs, you will owe the other driver financial damages out-of-pocket.

What if You Get in a Collision With an Uninsured Driver?

If you are the victim of a car accident with an uninsured or underinsured driver in Arizona, you may not know where to seek financial reimbursement for your losses. You will not have the other driver’s auto insurance provider to rely on for financial compensation. However, you may have a few other options:

  • A first-party claim with your own insurance provider. In Arizona, uninsured and underinsured motorist insurance are two optional types of coverage. They can pay for your bills and losses if the other driver in your accident does not have enough insurance. Call your own insurer and ask if you have this type of coverage after a collision with an uninsured driver.
  • A lawsuit against the other driver. In most cases, an uninsured driver does not have the means to pay out-of-pocket for a car accident. Most people drive uninsured because they cannot afford insurance. If, however, the driver does have the ability or assets to pay for your damages, filing a lawsuit against the driver could result in financial compensation.
  • A lawsuit against a different party. If a third party contributed to your car accident, you may be able to bring an injury claim against that party instead of the uninsured driver. Examples include the government for an unsafe roadway, the driver’s employer, a trucking company, an auto manufacturer or a property owner.

You may still have recovery options if the other driver in a car accident is uninsured. Speak to a Chandler car accident attorney before you assume that you are ineligible for financial recovery. Working with an accident lawyer can help you explore your options and choose the right one for you and your unique situation.