Arizona Auto Insurance Requirements

The state of Arizona requires drivers to provide the minimum mandatory liability auto insurance on any registered vehicle in the state. This insurance must be obtained through an authorized insurance company which has received approval from the state of Arizona. Golf carts, motorcycles and mopeds are included in the mandatory liability insurance laws. The minimum liability auto insurance coverage in Arizona is $15,000.00 of bodily injury insurance for each individual, $30,000.00 for two or more people and $10,000.00 for property damage. Any auto insurance policy purchased in Arizona must include the minimum liability amounts.

Every motorized vehicle on Arizona roads must be covered by the minimum liability coverage. This law also applies to rental vehicles. Your insurance policy usually covers rental vehicles. The credit card you use to rent the car may also cover the insurance on the vehicle. If this is not the case, you will have to purchase the minimum liability auto insurance policy from the rental car company.

If you are involved in an accident or experience any type of traffic stop in the state of Arizona, the police officer will request proof of insurance. If you do not have insurance proof with you, your license can be suspended as well as your vehicle’s registration. To fix this situation, you will have to pay the required fees and obtain an SR-22 form that will need to be carried in the vehicle for three years starting with the date the suspension began.

You must obtain the minimum insurance as soon as you register your car. There is no wait time allowed for you to insure your vehicle. If the vehicle you have registered is going to be in storage or restored before you begin driving it, you can fill out a De-Insured Certificate on line. The registration of the vehicle will remain current while the car is out of use but be sure to reinstate the insurance before you drive it. Off-highway vehicles and non-operational vehicles do not require the minimum liability auto insurance.



The penalties for not carrying current minimum liability auto insurance include fines, loss of your driver’s license and registration and loss of your vehicle plates. The first offense is a $500.00 fine, a suspended driver’s license, suspended registration, and the loss of the license plates of the vehicle for three months. The second offense within 36 months is $750.00 fine, a six month registration, and driver’s license suspension as well as the loss of the vehicle’s plates. The third violation within 36 months will result in $1,000.00 fine and the loss of your license, registration, and plates for one year. In order to get your plates, vehicle registration, and driver’s license back, you will have to pay fees and provide proof of financial responsibility to the Motor Vehicle Division. This generally requires an expensive SR-22 form from an auto insurance company. You will have to pay reinstatement fees to the state and continue to pay the SR-22 for three years.

The insurance companies send notifications to the state of any cancelled policies. The state will in turn contact you to inquire if you have replaced the old policy with a new one. If your vehicle is registered in the state of Arizona, it must be insured by a company licensed by the state. If you are out of state for a prolonged period of time such as for military duty, you can file the De-Insured Certificate for a short time.

If you receive notification that your plates and registration are suspended, there could be five possible causes for this notice. The state hasn’t received proof of your insurance, your coverage lapsed, an accident case was opened, your new registration was not on file when the insurance proof was received, or there was a VIN error. Be sure to keep the receipts for any vehicle you file a De-Insured form on for restoration purposes. The receipts are your proof that the vehicle was worked on. Before you drive the vehicle, fill out a non-use certificate and apply for the registration. The insurance company and the owner must submit proof of insurance to the state within 30 days.

To wipe out a suspension on a registration, you must provide proof of insurance to the state. In the place of insurance proof, an SR-22 for all persons listed on the registration at the time the registration was suspended is required along with the $50.00 reinstatement fee. The fee can be paid with cash, cashiers check, money order and sometimes a credit card. The information on the reinstatement forms must meet the state of Arizona’s requirements.