What Arizona Requires by Law
Arizona operates under a fault-based system, meaning the driver who causes a crash pays for the damage. The state mandates a minimum level of liability insurance and uninsured motorist coverage, but it does not require collision or comprehensive coverage. Drivers must carry proof of financial responsibility and be able to present it upon request. The required limits are expressed as three numbers representing bodily injury per person, bodily injury per accident, and property damage.
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| Coverage Type | Required Limit |
|---|---|
| Bodily Injury Per Person | $25,000 |
| Bodily Injury Per Accident | $50,000 |
| Property Damage Per Accident | $15,000 |
| Uninsured Motorist Bodily Injury Per Person | $25,000 |
| Uninsured Motorist Bodily Injury Per Accident | $50,000 |
What Those Numbers Actually Mean
The $25,000 per-person bodily injury limit is the most the insurer will pay for one person's injuries in a single crash. The $50,000 per-accident cap is the total the insurer pays out for all injured parties combined. The $15,000 property damage limit applies to the other driver's car or property. If damages exceed these limits, the at-fault driver is personally responsible for the remainder, which can include wages lost and pain and suffering.
Uninsured Motorist Coverage in Arizona
Arizona requires uninsured motorist bodily injury coverage matching the liability limits, though the state allows a written rejection. This coverage pays for your injuries when the other driver has no insurance or flees the scene. It does not cover damage to your vehicle, only bodily injury. Arizona does not require uninsured motorist property damage coverage, unlike some states that stack it with collision.
Where Minimum Coverage Falls Short
Medical bills from a serious accident can quickly exceed $25,000. A single hospital stay for a broken spine or traumatic brain injury can run into six figures. If you cause a crash with multiple injuries and the total exceeds your $50,000 per-accident limit, your personal assets — savings, home equity, future wages — are on the line. The Insurance Information Institute frequently notes that minimum liability limits have not kept pace with rising healthcare and vehicle repair costs.
How Arizona's Financial Responsibility Law Works
Under Arizona's financial responsibility law, drivers must show they can pay for damages they cause. Insurance is the standard way to do this. Without it, a driver risks license suspension, vehicle impoundment, and fines. SR-22 filings may be required after certain violations, such as a DUI or driving uninsured, to prove high-risk coverage for a set period.
Choosing Higher Limits Than the Minimum
Many Arizona agents recommend raising liability limits well above the state floor. Umbrella policies provide extra protection above auto limits and can be surprisingly affordable. When selecting a policy, consider the value of your assets, your driving environment in urban areas like Phoenix and Tucson, and the cost of medical care in the state. Higher limits do not prevent accidents, but they prevent a single crash from wiping out your finances.