Arizona Auto Insurance Guide

Whether you’re motoring over the Black Mountains on historic Route 66, taking the I-10 tailgate trail to a Cardinals game in Phoenix, or on your way over I-40 to the Petrified Forest, the Grand Canyon State offers great highways and awesome scenery. Sightseeing or commuting, car insurance is crucial to being a responsible Arizona driver.

 

Auto Insurance Resources for AZ State Residents

As of 2010, there were nearly 4.3 licensed driver in the Grand Canyon State. The Insurance Research Council estimates that 18% of Arizona’s drivers are uninsured. Police in Arizona reported a total of 119,588 automobile crashes in 2008, resulting in 37,180 injuries and 842 fatalities. The Arizona Highway Patrol estimates that alcohol was a contributing factor in 26% of those accidents. Uninsured drivers and drug-impaired drivers are good reasons to make sure you have enough car insurance while living and driving in the Grand Canyon State.

 

Arizona State Minimum Car Insurance

Arizona state law requires you to carry a minimum amount of car insurance or face severe penalties. Arizona has a tort-based system. If you cause an accident, you can be sued. While Arizona does not require you to carry Uninsured/Underinsured Motorist coverage, additional personal liability or Collision and Comprehensive, if you own property or other valuable assets, you would be wise to supplement the minimum requires shown below:

• $15,000 bodily injury per person per accident
• $30,000 bodily injury for all persons per accident
• $10,000 property damage liability

 

Arizona State Car Insurance Laws

To crack down on the number of uninsured drivers, Arizona has implemented some heavy fines and penalties.

• Since 2005, all vehicles involved in traffic accidents can be impounded for 30 days if the driver cannot produce a valid driver’s license and proof of insurance. You’ll also be fined $900 for having no license, $720 to $1,200 for having no insurance, an administrative fee of $150, towing charges and $15 a day to store your vehicle.
• Since 2009, if you are caught driving without proof of insurance, you face a $720 fine for a first offense, $970 for a second offense, and $1,200 and automatic one-year suspension of your license for a third offense. Repeat offenders are also required to physically surrender their licenses, plates and registration.
• Once your license is suspended, you will have to file and carry SR-22 documentation in your car at all times for three years. Failure to do so may result in permanent suspension of your driving privileges.
• Arizona requires your insurance company to notify the state’s MVD if you cancel your Arizona car insurance policy or let it lapse. At that point, you will receive notice from the MVD and given 15 days to provide proof of Arizona insurance or face suspension of your registration.

 

Regulating Agency and References

Arizona Department of Insurance
This is agency is responsible for regulating vehicle insurance policies sold in Arizona. For more information, visit their website at http://www.id.state.az.us

Arizona Department of Transportation Motor Vehicle Division
This agency is responsible for licensing drivers and registering vehicles. You can learn more about Arizona auto insurance requirements, penalties and related information at http://www.azdot.gov/mvd

National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government officials who regulate the conduct of insurance companies and agents in their respective states or territories. Visit NAIC at http://www.naic.org

Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at http://www.iii.org/

 

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