Arizona requires all drivers to show financial responsibility, most commonly through liability car insurance. Failure to do so can lead to steep fines, license or registration suspension, and other penalties.
- ✅ Carry at least 25/50/15 liability coverage
- ✅ Keep a digital or paper proof of insurance in your vehicle
- ✅ Consider higher limits or UM/UIM to protect your assets
- ✅ Rejected UM/UIM coverage? You must do so in writing
- ✅ Arizona does not use SR‑22 but has a similar system
Basic Car Insurance Requirements in Arizona
As of 2025, Arizona law requires the following auto liability minimums:
- Bodily Injury: $25,000 per person / $50,000 per accident
- Property Damage: $15,000 per accident
This is known as 25/50/15 coverage.
Alternatives to Insurance
Arizona drivers may deposit $40,000 in cash, certificate of deposit, or approved securities with the State Treasurer as a form of financial responsibility. This option is used in place of insurance for eligible drivers.
Uninsured In Arizona?
Arizona insurers are required to offer UM/UIM coverage, but you may reject it by signing a written waiver.
UM/UIM helps cover medical bills if you’re hit by someone who has no insurance—or not enough to cover your injuries. Arizona does not offer uninsured motorist property damage (UMPD).
Arizona Coverage Worth Thinking About
- Comprehensive
- Collision
- Medical Payments (MedPay)
- Roadside Assistance
- Rental Reimbursement
- Glass Coverage (Arizona prohibits rate hikes for glass-only claims)
Can You Use Digital Proof Of Insurance In Arizona?
Drivers must carry proof of coverage—either as a paper insurance card or a digital version on a mobile device. This must be shown during traffic stops, accidents, and registration renewals.
Legal Ramifications For No Insurance In Arizona
- First Offense: $500 fine + 3-month license & registration suspension
- Subsequent offenses bring steeper fines and longer suspensions
- Additional fees to reinstate your license and plates
Liability Limits & Asset Protection
Arizona follows an at-fault system, so drivers are financially responsible if they cause a crash. The state minimum may not fully cover injuries or property damage, putting your assets at risk.
Many drivers choose higher liability limits and add UM/UIM coverage for peace of mind.
Frequently Asked Questions About Arizona Insurance
Is Arizona a no-fault state?
No. Arizona is an at-fault state. The driver who caused the accident is legally responsible for damages.
Is UM/UIM coverage required?
No. It’s optional, but insurers must offer it. If you decline, it must be in writing.
Does Arizona use SR‑22 filings?
Arizona does not use SR‑22 forms but has a similar proof-of-financial-responsibility requirement for high-risk drivers.
Curious how insurance laws compare nearby? See requirements in
California,
Nevada,
Utah,
Colorado, and
New Mexico.