Car insurance is a vital and mandatory aspect of owning or driving a vehicle in the state of Arizona. If you are in a car, truck or motorcycle accident, liability insurance (yours versus the at-fault driver’s insurance policy) will cover things like property damages, bodily injury or death.

In Arizona, it is a requirement that every motor vehicle (i.e., car, truck, golf cart, motorcycle, moped, etc.) on the road is covered by liability insurance through an insurance company that is authorized to conduct business in the state. It is also mandatory that each driver’s insurance policy checks all the minimum requirements set by Arizona.



Car insurance is there to protect you and other drivers on the road by covering the costly consequences that follow a car accident. This is why it is so important to understand your insurance policy, the coverage available and who is financially responsible for the damages in the event of a crash.

What Is the Minimum Amount of Liability Car Insurance Coverage in Arizona?

The mandatory liability insurance law provides basic coverage for Arizona drivers after they have been in a car accident. Thanks to this law, all insured drivers in the state have the minimum coverage they need for medical bills, lost wages, property damages and more.

While it is not a requirement, you can request additional coverage from your insurance company, but it will likely cost you more money annually to pay for those premiums. Depending on factors like how much you drive, where you drive and your typical driving conditions, it may be a good idea to increase your coverage amounts. Once your maximum insurance limit is reached, it’s up to you to cover the remainder out of your own pocket. It's for this reason that higher insurance limits can benefit you by protecting your personal assets in the event of a serious car accident.

If you own or operate a motor vehicle of any kind in the state of Arizona, that vehicle must meet the following insurance coverage requirements: 

1. A minimum coverage of $25,000 for one person’s bodily injury or death as a result of the accident caused by the insured driver
   
   
2. A minimum coverage of $50,000 for two or more people’s bodily injuries or deaths as a result of the accident caused by the insured driver
   
   
3. A minimum coverage of $15,000 for property damage as a result of the accident caused by the insured driver

What Car Insurance Premiums Might an Arizona Driver Use After Getting into an Accident that Wasn’t Their Fault?

If you have been in a car accident that wasn’t your fault, a number of insurance premiums may benefit you if you decide to add them to your policy. The following benefits are optional and are not a requirement of Arizona’s mandatory liability insurance law. Speak with a member of your insurance company to find out what premiums are available to you.

• Medical payments (AKA “Med Pay”): You can add additional medical coverage to your insurance policy to cover medical care and expenses caused by an accident at the fault of another driver. Med Pay can also be used for covering injuries if you are hit by a car while walking, biking or running. Typically, $5,000 is the most common coverage amount when it comes to Med Pay benefits.

• Collision: If you are still making payments on your vehicle, you may want to add collision coverage to your insurance policy. This optional benefit will cover any additional or remaining costs that are not covered by the at-fault driver’s insurance company or if the at-fault driver is uninsured.

• Gap insurance: This type of auto insurance coverage that helps to cover the difference between the amount you owe on your car loan and the actual cash value of your vehicle in the event that it is totaled or stolen. It can help to protect you from financial loss if your car is damaged beyond repair or stolen.

• Underinsured or uninsured motorist coverage (UIM/UM): This optional coverage benefit protects you against at-fault drivers who are either underinsured or uninsured (including hit-and-run collisions). With UIM/UM coverage, you can submit a claim for your injuries, any damages, lost wages, pain and suffering, medical bills and more.

• Rental coverage: If your vehicle needs to be repaired or appraised for its total loss fair market value, you will likely require access to a car in the meantime. This is where rental car coverage can be a huge benefit to add to your insurance policy.

Will My Insurance Rate Go Up if I Get into a Car Accident?

One of the most common misconceptions about getting into an accident is the increase in your insurance rate. If you get into an accident in Arizona that was not your fault, your insurance company is not legally permitted to raise your insurance rate.

However, insurance companies are notorious for raising insurance rates for factors that might include:

• A growth in Arizona’s population
• An increase in uninsured drivers on the road
• A greater number of accidents in your zip code
• Dangerous weather conditions (a factor that is least likely to occur in Phoenix)

Are you worried about your insurance rate going up after getting into a car accident? Hiring a car accident lawyer can help prove the other driver’s negligence and keep your insurance rate low.

You May Need an Experienced Phoenix Car Accident Attorney on Your Side

Arizona’s roadways are often a very dangerous place, especially when you consider the number of drivers who are uninsured. Don’t allow the at-fault driver’s insurance company to belittle your damages or try to place the blame on you.

Connect with one of our highly trained and experienced car accident attorneys listed on PHX Elite Lawyers and get the legal representation you deserve.