Arizona Car Insurance Requirements: Minimums, Fault Rules & Penalties

Minimum liability requirements

Arizona requires every registered vehicle to be covered by a liability insurance policy that meets the state's mandatory minimums. These limits represent the maximum your insurer will pay per claim — damages beyond the limits become your personal obligation.

Coverage	Minimum Required
Bodily injury per person	$25,000
Bodily injury per accident	$50,000
Property damage per accident	$15,000

The $15,000 property damage minimum is on the lower end nationally. A single vehicle repair or replacement in today's market can easily exceed that figure, leaving you personally liable for the shortfall. Arizona also has a higher-than-average rate of uninsured drivers, which makes uninsured motorist coverage a practical addition to any policy — it can be waived only in writing in Arizona. Review coverage types explained to understand your full set of options.

Fault system

Arizona is an at-fault state. The driver responsible for causing a collision bears financial liability for the other party's injuries and property damage, paid through their liability insurance. Injured parties file claims against the at-fault driver's insurer, or pursue a lawsuit if the claim is disputed or damages exceed policy limits.

Arizona uses a pure comparative fault system. Under this approach, fault is divided proportionally among all parties involved. Each driver can recover damages from the others based on the other party's percentage of fault — there is no cutoff that bars recovery entirely.

For example: if your damages total $80,000 and you are found 20% at fault, you can recover $64,000 (80%) from the other driver. Even if you are 90% at fault, you could theoretically recover 10% of your damages. This differs from the modified comparative fault rules used by most states, and means that fault allocation can be contested in nearly any accident, regardless of how the liability appears to be distributed.

SR-22 requirements

An SR-22 is a certificate of financial responsibility filed by your insurance company with the Arizona Motor Vehicle Division (MVD). It confirms that your policy meets the state minimum liability requirements. It is a form endorsement on an existing policy, not a separate product.

Arizona requires an SR-22 after:

• A DUI or DWI conviction
• An at-fault accident that occurred while uninsured
• Driving with a suspended or revoked license
• Other violations resulting in license suspension

The SR-22 filing obligation lasts three years. If your policy is cancelled or lapses at any point during that period, your insurer must notify the MVD, and your license is subject to immediate suspension. Reinstatement requires a new policy with an active SR-22 endorsement plus payment of any applicable fees. Carriers that specialize in non-standard auto coverage can often bind a policy and file the SR-22 on the same day. Use our ZIP code tool to compare options in Arizona.

Penalties for driving without insurance

Arizona operates an electronic insurance verification system that allows the MVD to identify uninsured vehicles without requiring a traffic stop. Notices can be mailed based on registration data, and officers can verify coverage in real time at any stop.

Offense	Fine	Additional Consequences
First offense	Up to $500	License and registration suspended; $50 reinstatement fee required
Second offense (within 36 months)	Higher fine	Longer suspension period

After a first offense, your license and registration remain suspended until you provide proof of current insurance and pay the $50 reinstatement fee. A second offense within 36 months results in a longer suspension period and higher fines, with additional conditions before reinstatement is granted.

A history of coverage lapses raises your premiums when you seek a new policy, compounding the immediate cost of a citation. Maintaining continuous liability coverage is both the legal baseline and the more cost-effective long-term choice.

For information on other states, visit the State Rules hub.