Arizona Car Insurance

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Arizona car insurance law requires you to show financial responsibility for injuries and property damages that may be incurred as a result of an accident. You can fulfill this in two ways:

  • Showing proof of liability insurance OR
  • Certificate of deposit of $40,000 assigned to the State Treasurer’s office in Arizona.

You must show this proof if you are a resident of Arizona. Arizona residency is established through the following ways:

  • Working in Arizona
  • Staying in Arizona for at least 7 months in a calendar year
  • Registering to vote in Arizona
  • Paying in-state tuition for yourself or your children
  • Owning a business that transports goods or people within Arizona
  • Operating a business in Arizona with in-state vehicles.

Proof of Financial Responsibility In Arizona, you must prove that you are capable of paying for injuries and property damages in case of an accident. If you are caught driving without proof, you will face the following penalties:

  • A minimum fine of $250
  • Driver’s license or car registration suspension for 3 months.
  • Subsequent car insurance law violations will result in more serious penalties.

Liability Insurance

If you choose to show financial responsibility through insurance, you must purchase liability insurance. This insurance policy covers the cost of property damage and injuries resulting from an accident that you cause. The following are the minimum limits of liability coverage:

  • $15,000 for bodily injury, per person
  • $30,000 for total bodily injury if multiple people are injured in an accident
  • $10,000 for total property damage

Self-Funded Insurance

As mentioned above, you can decide to use a certificate of deposit of $40,000 assigned to the State Treasurer’s office in Arizona as a proof of financial responsibility. For more information on how you can open an account, contact the State Treasurer’s office in Arizona at (602) 542-7800.

Optional Car Insurance in Arizona

Arizona car insurance providers also offer optional types of insurance to help protect you further. These include:

  • Collision coverage
  • Comprehensive coverage
  • Uninsured & underinsured motorist coverage
  • Medical payments coverage
  • Rental reimbursement coverage
  • Full glass coverage

NOTE: If you are financing your car through lease agreement or loan, you may be required to buy comprehensive or collision coverage.

Proof of Insurance

You must show proof of insurance when:

  • You are stopped by a police officer
  • You register your car in AZ
  • You are involved in a car accident.

Accepted forms of proof of insurance include:

  • A copy of your Arizona car insurance policy
  • An insurance card issued by your car insurance company
  • An image of your insurance card on a mobile device.

Insurance Violations and Penalties

If you are caught driving without car insurance, your driver’s license and car registration will be suspended. Your car insurance provider must notify the Arizona Department of Transportation (ADOT) when your car insurance is suspended, cancelled or not renewed. This can be done electronically. If your Arizona car insurance has been suspended or canceled in error:

  • Contact the ADOT in writing within 10 days to object to the cancellation
  • Send your letter by mail to: Director of Insurance State of Arizona Department of Insurance 2910 North 44th St Suite 210 Phoenix, AZ 85018

Reinstating a Car Registration or Driver’s License

If your driver’s license or car registration is suspended for failure to hold the required proof of financial responsibility, ADOT will require you to:

  • Show proof of future financial responsibility
  • File SR-22 certification
  • Pay a reinstatement fee: $10 plus an application fee for suspended license $20 plus an application fee for revoked license.
  • An application fee: 16 to 39 years old: $25 40 to 44 years old: $20 45 to 49 years old: $15 50 years old or older: $10.

SR22 Certification in Arizona

If your driver’s license or vehicle registration is reinstated after a period of suspension for violating traffic and insurance laws, you must file the SR-22 certification. SR-22 certification must be filed by your car insurance company with ADOT Motor Vehicle Division, and it usually lasts for 3 years.

Car Insurance Regulation

Arizona Department of Insurance is the body responsible for car insurance regulation. This department can help answer your car insurance questions and respond to your concerns. They also deal with car insurance frauds.

Consumer Assistance in AZ

If you have any concern with your Arizona car insurance company, you can contact the ADI for help. This can be done through the following means:

  • By mail: Consumer Services Division Arizona Department of Insurance 2910 North 44th St, Phoenix, AZ 85018
  • By phone: (800) 325-2548.

Arizona Car Insurance Fraud

Car insurance fraud costs insurance providers huge sums of money, which can result to increased insurance premiums. Insurance frauds can involve:

  • Filing false claims
  • Selling insurance without a license
  • Forging insurance documents.

You can help fight car insurance frauds by reporting suspected frauds to:

  • The Arizona Department of Insurance Fraud Unit at (602) 364-2140
  • The National Insurance Crime Bureau at (800) 835-6422.

You can also report frauds by text to NICB. Send “FRAUD” to tip411.

Arizona Car Insurance Rates

Several factors go into determining car insurance rates in Arizona. Car insurance providers in this state use the following factors when calculating your rates:

  • The make and model of your car
  • Your driving record
  • Your car insurance claim history
  • Your gender
  • Your age
  • Your marital status
  • Your credit history.

Traffic Violations

Violating traffic regulations can raise your insurance rates because they will be entered in your driving record. Traffic violations that are entered in your driver’s license include:

  • DUI/DWI violations
  • Reckless driving
  • Speeding
  • Leaving the scene of an accident
  • Failing to stop at a signal.

Always keep a clean driving record in order to get cheaper insurance rates.

Car Insurance for High-Risk Drivers

If you are considered a high risk driver, you may find it hard to get a company to insure your car. But good news is; you can insure your car through Arizona Automobile Insurance Plan (AAIP). These associations share the risk associated with damages and injuries caused by high risk drivers. Car insurance through this plan is more expensive than that offered by open market insurance companies.

Car Insurance Discounts

One great way to save on car insurance is by looking for a car insurance company that offers discounts. The following are some of the discounts that most car insurance companies may offer:

  • Multiple vehicles on one policy
  • Anti-theft features in your car
  • Multiple policies with one insurance company
  • Good grades for student drivers
  • Accident free drivers
  • Safety features in your car, such as air bags.

These discounts can save you a lot of money, but the best way to obtain cheap insurance for your car is by maintaining a clean driving record.

Most Stolen Cars in Arizona

If you are driving a car that is always targeted by thieves, you are likely to pay higher insurance rates. This is the 2013 list of the most stolen cars in Arizona according to

  1. Honda Civic and Honda Accord
  2. Chevrolet Pickup (Full Size)
  3. Dodge Pickup (Fill Size)
  4. Ford Pickup (Full Size)
  5. Nissan Altima
  6. Nissan Sentra
  7. Toyota Camry
  8. Jeep Cherokee/Grand Cherokee
  9. Nisan Maxima.