Arizona Auto Insurance Requirements 2025 | Minimum Coverage

Arizona requires 25/50/15 minimum liability coverage. Learn state requirements, electronic verification, penalties, and recommended coverage levels.

Quick Answer: Is Auto Insurance Required in Arizona?

Yes. Arizona law requires all drivers to carry minimum liability coverage. The state uses a 25/50/15 minimum coverage structure:

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

Arizona is an at-fault state, meaning the driver who causes an accident is financially responsible for damages. The state uses an electronic insurance verification system to monitor compliance.

Arizona Minimum Coverage Requirements

Required Coverage Types

Coverage Type	Minimum Amount	What It Covers
Bodily Injury (per person)	$25,000	Medical costs for one person you injure
Bodily Injury (per accident)	$50,000	Total medical costs per accident
Property Damage	$15,000	Damage to others' vehicles/property

Understanding the 25/50/15 Format

Arizona's minimum is commonly written as "25/50/15." Here's what each number means:

First number (25): Maximum your insurer pays for one person's injuries
Second number (50): Maximum total payment for all injuries in one accident
Third number (15): Maximum for property damage you cause

Optional But Recommended Coverage

Uninsured/Underinsured Motorist (UM/UIM): About 12% of Arizona drivers are uninsured
Collision: Covers your vehicle regardless of fault
Comprehensive: Theft, weather damage, vandalism
Medical Payments (MedPay): Covers your medical bills regardless of fault

Who Must Carry Arizona Auto Insurance?

Insurance Required For:

All registered motor vehicles
All drivers operating on Arizona roads
Leased and financed vehicles (lender may require full coverage)
Out-of-state vehicles driven in Arizona long-term

Legal Alternatives to Insurance:

Cash deposit: $40,000 deposited with the Arizona State Treasurer
Surety bond: $40,000 bond from an authorized surety company
Certificate of self-insurance: For fleets of 25+ vehicles

Exemptions:

Vehicles operated exclusively on private property
Government-owned vehicles
Vehicles covered under fleet self-insurance programs

Penalties for Driving Uninsured in Arizona

Arizona enforces insurance requirements through the AZMVD NOW electronic verification system. Penalties escalate with repeat offenses.

First Offense

Fine: $500 minimum
License suspension: 3 months
Registration suspension: Until proof of insurance provided
SR-22 requirement: 3 years of certified insurance filings

Second Offense (within 36 months)

Fine: $750 minimum
License suspension: 6 months
Vehicle impoundment possible
SR-22 requirement: 3 years

Third and Subsequent Offenses

Fine: $1,000 or more
License suspension: 1 year
Vehicle impoundment up to 30 days
Possible criminal misdemeanor charges

Additional Consequences

Reinstatement fees: $50-$100
Insurance premiums increase 20-40% after SR-22
Personal liability for all accident damages
Civil lawsuits if you cause an accident while uninsured

Arizona Electronic Insurance Verification

Arizona uses the AZMVD NOW system to automatically verify insurance coverage. Here's how it works:

Insurance companies report policy status electronically to the state
System automatically flags vehicles without valid coverage
Owners receive notices demanding proof of insurance
Failure to respond results in suspension

What This Means for Drivers

Lapses are detected within days, not months
You cannot easily "get away with" driving uninsured
Switching insurers requires no gap in coverage
Electronic verification happens at registration renewal

How to Get Arizona Auto Insurance

Steps to Get Covered

Gather information: VIN, driver's license, driving history
Compare quotes: Get quotes from at least 3 insurers
Choose coverage levels: Minimum or higher recommended
Purchase policy: Pay premium, receive proof of insurance
Maintain continuous coverage: Avoid any gaps

Documentation Needed

Valid Arizona driver's license (or out-of-state license if new resident)
Vehicle registration information
VIN (Vehicle Identification Number)
Driving record (available from AZMVD)

New Residents

If moving to Arizona, you must:

Register your vehicle within 15 days of establishing residency
Obtain Arizona-compliant insurance
Transfer your driver's license within 30 days

Arizona SR-22 Requirements

An SR-22 is a certificate proving you carry minimum insurance. Arizona requires one if you:

Were caught driving without insurance
Had a DUI/DWI conviction
Were at-fault in an accident while uninsured
Had license suspended for too many points
Failed to pay court-ordered judgments

SR-22 Details

Duration: 3 years from the filing date
Filing fee: Typically $15-50 (varies by insurer)
Premium impact: Expect 30-50% higher rates
Continuous coverage required: Any lapse resets the 3-year clock

Arizona vs. Neighboring States

State	Minimum Liability	Property Damage
Arizona	25/50	$15,000
California	15/30	$5,000
Nevada	25/50	$20,000
New Mexico	25/50	$10,000
Utah	25/65	$15,000
Colorado	25/50	$15,000

Arizona's minimums are moderate compared to neighbors. California has lower limits, while Nevada requires more property damage coverage.

Why Arizona Minimums May Not Be Enough

Real-World Scenarios

Medical costs: The average hospital stay in Arizona costs over $15,000. A serious injury can easily exceed $100,000 in medical bills. Your $25,000 per-person limit could leave you personally liable for the difference.

Vehicle values: The average new car costs $48,000. Your $15,000 property damage limit won't cover a totaled vehicle, leaving you to pay out-of-pocket.

Recommended Coverage Levels

Most experts recommend at least:

50/100/50 for better protection
100/300/100 for optimal coverage
UM/UIM coverage matching your liability limits

FAQ

What is the minimum auto insurance required in Arizona?

Arizona requires 25/50/15 liability coverage: $25,000 bodily injury per person, $50,000 per accident, and $15,000 property damage.

Does Arizona require uninsured motorist coverage?

No. UM/UIM coverage is optional in Arizona, but insurers must offer it. About 12% of Arizona drivers are uninsured, making this coverage highly recommended.

How does Arizona verify insurance?

Arizona uses the AZMVD NOW electronic verification system. Insurance companies report policy status directly to the state, and lapses are flagged automatically.

What happens if I'm caught driving without insurance in Arizona?

First offense brings a $500 minimum fine, 3-month license suspension, and a 3-year SR-22 requirement. Penalties increase for repeat offenses.

Is Arizona an at-fault or no-fault state?

Arizona is an at-fault state. The driver who causes an accident is financially responsible for damages.

Can I use out-of-state insurance in Arizona?

Yes, temporarily. If you establish Arizona residency, you must obtain Arizona-compliant insurance within 15 days of registering your vehicle.

How long do I need SR-22 insurance in Arizona?

Arizona requires SR-22 filings for 3 years. Any coverage lapse during this period restarts the clock.

Summary

Key Takeaways:

Arizona requires minimum 25/50/15 liability coverage
Electronic verification means lapses are detected quickly
First offense for no insurance: $500 fine + 3-month suspension + SR-22
About 12% of Arizona drivers are uninsured—consider UM/UIM coverage
State minimums may leave you personally liable in serious accidents
SR-22 required for 3 years after certain violations

Important Disclaimer

This guide provides general information about Arizona auto insurance requirements based on publicly available sources. This is not legal advice. Insurance requirements can change, and individual circumstances vary. Always verify current requirements with the Arizona Department of Transportation (ADOT) or Arizona Department of Insurance, and consult with a licensed insurance professional for advice specific to your situation.

Last verified: December 2025 Sources: Arizona Department of Transportation, Arizona Department of Insurance