Guide to Car Insurance in Arizona

• Bodily injury liability: $25,000 per person, $50,000 per accident
• Property damage liability: $15,000¹

There are many types of insurance to suit specific needs, but the most most important are liability, comprehensive, and collision coverage. Liability insurance covers others’ medical and repair expenses when you cause an accident. Collision insurance covers damages to your vehicle in an accident with another vehicle or objects, no matter who is at fault.

Comprehensive insurance covers your property costs in accidents when damage wasn’t due to a collision. Coupling these coverages with Arizona’s required liability insurance provides basic protection whether you are at fault or not in an accident.

Additional coverages to increase your safety net include uninsured motorist (UM) coverage and medical payments coverage. UM coverage protects you in accidents with a driver who lacks insurance or whose insurance falls below state minimums. Medical payment coverage pays your medical expenses regardless of fault, but does not cover lost wages or childcare.

Insurance limits are the maximum amount your policy will pay toward a claim for each type of coverage. You are responsible for any costs that exceed your policy’s limits, so get the highest limits you can afford. State requirements are usually lower than the amount you’ll need in the event of an accident. Instead of basing your coverages on state minimums, consider higher coverage limits.

Your limits should be high enough to protect your assets in the event of an accident. The standard coverage for most drivers is around 100/300/50: $100,000 per person and $300,000 per accident in bodily injury liability, and $50,000 per accident in property damage liability. This standard works on a scale.

The higher your car and assets value, the higher your limits can be, such as 250/500/125. The lower your car and asset value, the lower your limits should be, such as 50/100/25.

According to our industry analysis, the average cost of car insurance for Arizona is $1,845 for full coverage and $861 for minimum coverage. Overall, we’ve seen premiums in Arizona range from $770 to $3,529 annually. Expect lower car insurance rates if you have a clean driving record, or higher auto insurance rates for young drivers or people with a poor driving history.

The last time the National Association of Insurance Commissioners released federal data on auto insurance rates, in 2021, Arizona drivers paid an average of $1,201. This was less than the national average of $1,089, and broke down as the following by coverage type:

• Liability coverage — $659
• Collision insurance — $323
• Comprehensive insurance — $219

To get the cheapest car insurance in Arizona, compare the cost of car insurance from multiple companies.

• AAA
• AARP
• ACCC
• Allstate
• American Family
• Country Financial
• Farmers
• GAINSCO
• GEICO
• Hallmark Financial
• Iowa Farm Bureau
• Liberty Mutual
• Mercury
• Nationwide
• Progressive
• QBE
• Safeway
• State Farm
• Travelers
• USAA

1. Raise your deductible. Ask your agent how your premium would change if you raise your deductible. It might lower your car insurance rates by several percentage points and put some money back in your pocket, or the savings might be negligible.
2. Take advantage of discounts. By choosing a bulk rate when insuring several drivers or vehicles under one company, you can qualify for a multi-car discount. In the same vein, safe driving discounts reward you for avoiding accidents and moving violations. Additionally, some companies will provide discounts for completing defensive driving, accident prevention, or another course.
3. Improve your credit rating. Maintaining good credit proves your financial responsibility and can lower premiums.

When driving in Arizona, you’ll need proof of insurance, whether it takes the form of a physical ID card or a digital ID housed in an app. The medium for electronic proof of insurance depends on your provider.

You could face penalties if you’re caught driving without insurance:

At-Fault State

Arizona is an at-fault state, meaning the at-fault party pays for both property damage and bodily injury. In terms of negligence laws, Arizona is a pure comparative negligence state. Pure comparative negligence laws rule that accident victims can recover money for injuries no matter how negligent they were, even if their degree of fault was higher than the opposing party’s.⁴

Drivers Without Insurance

Although UM coverage isn’t a requirement in Arizona, many companies still offer it. While this coverage is not necessary, it provides extra protection while on the road, since 12 percent of drivers in Arizona were uninsured in 2022, 2 percent less than the national average.⁵

Stacking is the act of combining coverage for multiple vehicles. Unfortunately, Arizona operates unstacked. If you have more than one car on your policy, you cannot apply uninsured/underinsured bodily injury coverage across your vehicles.

Driving Under the Influence Laws

It is unlawful to be under the influence of liquor or drugs while driving, because that can inhibit your capability to control a vehicle. When you receive your license in Arizona, you consent to test for blood alcohol or drug content (BADC). The term for the interlock in Arizona is Certified Ignition Interlock Device (CIID).

If you fail a BADC test and are charged with a DUI, it will stay on your driving record for seven years.⁵ The type of DUI determines BADC thresholds and penalties:

These are some other instances when you would be required to install a CIID:

• A second drunk-driving offense that occurs within seven years of the first
• A third or subsequent drunk-driving offense
• A drunk-driving offense while license is suspended or revoked for a prior DWI offense
• A drunk-driving child endangerment offense
• A first or second offense of 0.15 percent BAC

Seat Belt Laws

Anyone under the age of 16 is required to wear a seat belt in Arizona, no matter what seat they’re in. Arizona operates under secondary seat belt law,⁶ which means an officer can only issue a ticket for not wearing a seat belt when there is another citable traffic infraction.

Distracted Driving Laws

Arizona has a hands-off policy, meaning it is illegal to talk or text on a cellphone while driving unless the device is in a hands-free mode. This hands-off policy combats distracted driving, especially texting and driving.

Here are the fees for using a phone while driving:

• First offense — $75 to $149
• Subsequent offenses — $250 plus applicable surcharges⁹

Teen Driver Laws

If you’re under 18, you can apply for a graduated instruction permit or a graduated driver’s license. For either a graduated permit or license, you must pass written and vision tests and bring a completed application with original supporting documents to the Arizona Motor Vehicle Division (MVD). Find original supporting document requirements here: https://apps.azdot.gov/files/mvd/mvd-forms-lib/40-5144.pdf.

There are specific regulations under each certification:

For drivers younger than 18, the application for an instruction permit or driver’s license requires an adult signature. The adult will be responsible for any negligence or willful misconduct when the teen is driving.

Registration Information

In Arizona, whenever you buy a vehicle, you must apply for a title within 15 days of purchase or you may face penalties. Here’s how to avoid penalties and register your car:

1. Fill out the application. You can download it online if visiting the office in person (https://apps.azdot.gov/files/mvd/mvd-forms-lib/96-0236.pdf), or you can activate and/or sign in to your account on the MVD website to access title state and replacement, registration, and other services at https://azmvdnow.gov/home.
2. Gather the necessary documents.
   • Valid Arizona driver’s license
   • Emissions test (Phoenix and Tucson areas only)
   • Proof of insurance
   • Proof of ownership
   • Lien details (if paying a loan on the vehicle)
   • Signed application.
3. Pay applicable fees. Determine your registration fee based on your vehicle (https://azdot.gov/sites/default/files/2019/08/AZ-registration-fees.pdf).
4. Turn the application in. You have two options:
   • Take the application to an MVD office or third-party provider. You can find the nearest office at https://azdot.gov/mvd/mvd-hours-and-locations.
   • Take it to an authorized third-party provider. You can find the list at https://azdot.gov/node/9477.
   • Submit the application from your MVD online account.

Arizona Motor Vehicle Division Contact Information

• URL: https://azdot.gov/mvd/contact-mvd
• Phone number: 602-255-0072
• Phone number for the hearing/speech-impaired: 602-712-3222
• Hours for phone lines: Monday through Friday, 8 a.m. to 4:30 p.m.
• Physical locations: https://azdot.gov/mvd/mvd-hours-and-locations
• Hours for physical locations: 7:30 a.m. to 4:45 p.m., Monday through Friday, except on state holidays

How to Get a Duplicate Car Title in Arizona

1. Fill out the application. You can download it here: https://apps.azdot.gov/files/mvd/mvd-forms-lib/96-0236.pdf.
2. Pay the fee. Include $4 with your application. No notary is required.
3. Mail the application.
   • Motor Vehicle Division
     P.O. Box 2100, MD 555M
     Phoenix, AZ 85001

Arizona Insurance Department Contact Information

• URL: https://difi.az.gov/
• Phone number: 602-364-3100
• Mailing address:
  • 100 N. 15th Ave., Suite 261
    Phoenix, AZ 85007-2630

Arizona’s average repair costs totaled $388.92 in 2021.⁸ On average, that breaks down into $250.14 for parts and $138.78 for labor.

Auto Theft

Arizona had 295 car thefts per 100,000 inhabitants in 2022, making car theft 10 percent more common than in the rest of the nation. The rate in Arizona’s most populous cities is significantly higher than the national average of 268, but that drops off significantly as the population density decreases.

Traffic Deaths

Unfortunately, Arizona had 1.71 deaths per 100 million vehicle miles traveled in 2022, a rate that sits 28.5 percent above the national average. Arizona ranks fifth in the nation for traffic fatality rates.

Several issues coalesced to cause the spike in traffic-related crashes. Despite lower travel rates due to many people working remotely during the COVID-19 pandemic, Arizona’s fatal car crashes increased because of distracted, impaired, and reckless driving. More specifically, fatalities reached the second-highest rate on record in 2022 because of speed-related crashes and reduced police enforcement.

Exploring Arizona’s auto insurance regulations can help you pick the best coverage for your needs. Keep safe driving practices in mind and carry proof of insurance as you embark on those desert roads. We’ve also reviewed the best auto insurance in Arizona so you can find the right provider.