Arizona Car Insurance Requirements (Updated for 2025)

Driving in Arizona requires proof of financial responsibility—typically through liability insurance. Non‑compliance can result in fines, license or registration suspension, and other penalties.

Minimum Liability Coverage in Arizona

As of 2025, Arizona law mandates the following minimum liability insurance:

• Bodily Injury Liability: $25,000 per person / $50,000 per accident
• Property Damage Liability: $15,000 per accident

Commonly referred to as “25/50/15” coverage.

Alternative Proof of Financial Responsibility

Instead of insurance, Arizona allows a deposit of $40,000 in cash, securities, or a certificate of deposit with the State Treasurer as proof of liability coverage.

Uninsured/Underinsured Motorist Coverage

Insurers must offer UM/UIM coverage but it is optional—you may reject it in writing.

UM/UIM pays your bodily injury expenses if you’re hit by a driver with no or insufficient insurance. There is no UM property damage (UMPD) in Arizona.

Optional Coverages to Consider

• Comprehensive Coverage
• Collision Coverage
• Medical Payments (MedPay)
• Roadside Assistance
• Rental Reimbursement
• Glass/Auto Glass Coverage (state prohibits premium hikes for glass claims only)

Proof of Insurance Requirements

Drivers must carry proof of insurance via a physical or digital insurance ID card and present it during traffic stops, accidents, or vehicle registration.

Penalties for Driving Without Insurance

• First offense: Minimum $500 fine + 3-month license & registration suspension
• Higher fines and penalties for repeat violations
• Administrative and reinstatement fees

“No Pay, No Play” / Liability Limit Advice

Arizona’s minimum limits may leave you liable for damages beyond policy limits, so many drivers opt for higher limits or UM/UIM to better protect assets.

Compare Auto Insurance Quotes in Arizona

Premiums vary based on age, location, driving history, vehicle type, and coverage choices. Use the tool below to compare quotes from top Arizona insurance carriers:

🔍 Start Comparing Arizona Car Insurance Quotes →

FAQs

Is Arizona a no‑fault state?

No. Arizona follows an at‑fault (tort) system—drivers at fault must pay for damages.

Is UM/UIM coverage mandatory in Arizona?

No, but insurers must offer it and you must reject it in writing if you choose not to carry it.

What is an SR‑22 in Arizona?

Arizona does not use the SR‑22 form—but proof of financial responsibility must be filed and maintained, similar in effect.