Auto Insurance Laws in Arizona

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When you’re on the road, having auto insurance is important. It protects you, your passengers, and people in other vehicles should an accident occur, as well as allows you to handle damages if your car or someone else’s needs to be repaired or replaced. Having insurance is also important because the state of Arizona requires it.

Mandatory Auto Insurance in Arizona

The state of Arizona requires every driver to have liability insurance from an authorized agency. In addition to traditional vehicles, those driving mopeds, motorcycles, and golf carts must also carry coverage. At a minimum, you must have at least $25,000 bodily injury liability for one person and at least $50,000 for two or more people. You must also carry at least $15,000 in property damage liability coverage. 

The State Receives Reports From Your Insurance Agency

If you cancel your insurance policy, don’t renew it, or change to a new insurance agency, the agency alerts Arizona’s Motor Vehicles Department of the changes. The state will then contact you if it feels you have no active insurance policy and verify your information. Without liability coverage, you could face the loss of your driver’s license, the suspension of your vehicle registration, and other consequences. 

The Argument for More Coverage

Although Arizona only requires you to have a certain amount of coverage, it is a good idea to ask your provider of auto insurance Peoria AZ whether you need more. Many times, $15,000 is not enough to cover the damages in an accident, especially if both cars are damaged. Additionally, you may not have enough coverage for any medical bills. If your insurance policy doesn’t pay for everything, you’ll need to pay out of pocket. For this reason, it’s often a smarter and more affordable option in the long run to choose larger policies. 

The amount of coverage you need depends on a variety of factors, including the type of car you have and how often you drive. Your insurance agent can help you determine which options best meet your needs.