Understanding Arizona Car Insurance Requirements

Understanding Arizona Car Insurance Requirements

Do You Understand Arizona Car Insurance Requirements?

Car insurance is designed to protect you financially in the event of an automobile accident, regardless of fault.

As a policyholder, you pay an insurance premium to receive the coverage outlined in your policy agreement.

In addition to requiring vehicle registration and titling, the state of Arizona also requires mandatory car insurance for all vehicles operated on roadways within the state, including motorcycles, mopeds, and golf carts.


Minimum Levels of Coverage

Arizona’s mandatory car insurance coverage not only requires that all motor vehicles be covered by insurance, but also requires a minimum amount of coverage.

The minimum levels of coverage required by Arizona law are $15,000 bodily-injury liability for a single person and $30,000 bodily-injury liability for two or more people.

Arizona also requires a minimum of $10,000 in property-damage liability.


Obtaining Insurance

All vehicles registered in the state of Arizona must be covered by an insurance company that is licensed to provide insurance coverage for vehicles in the state of Arizona.

Insurance is required immediately upon vehicle registration in Arizona—thus, if you move to Arizona from another state, you must obtain Arizona-based insurance before you can register your car.

If your car is not being driven, you may un-insure it without penalty as long as it is not driven on state roadways prior to insurance reinstatement.


Under-insured and Uninsured Motorist Coverage

Other important variables with regard to auto insurance that people should pay more attention to are uninsured and under-insured drivers.

Insurance protecting against uninsured and under-insured drivers is optional in Arizona, but with a decent percentage of drivers operating their vehicles without insurance over 20% in some states) it is more important than ever.

If your insurance coverage does not extend to under-insured and uninsured drivers, you may not be covered for damages unless you have coverage that will pay you for lost wages, damages, and injury in the event of an accident with an under-insured or uninsured driver.

Inquire with your insurance company for more information.


Penalties for Lack of Insurance

If you are found to be operating a vehicle without the required insurance coverage, your vehicle registration and/or your driver’s license may be suspended until such time that you can prove you have obtained the necessary coverage.

Once you submit proof of insurance, your registration will either be reinstated immediately or within 24 hours or receipt.

If you have received a ticket for lack of car insurance, the Thrush Law Group can help you contest it.

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