Arizona Car Insurance Requirements |
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 The state of AZ, like the majority of United States, follows the Financial Responsibility Law; this means that drivers must maintain proof that they are able to compensate for bodily injuries and property damage that they are found liable for causing as a result of a traffic accident. Most motorists choose to purchase a Liability policy from an auto insurance carrier to meet the state's requirement. Policies must be issued by a company licensed to do business in Arizona with the following minimum limits;- $15,000 for bodily injury for one person
- $30,000 for bodily injury for two or more persons
- $10,000 for property damage
Proof of a valid policy will be needed in the event that a motorist is asked by a law enforcement officer during a traffic stop or following an accident. In addition, proof will need to be submitted immediately once a vehicle is registered before the automobile can be driven legally and no longer than 30 days after registration by both the insurer and owner; once a new policy has been issued the insurance provider will notify the Motor Vehicle Department (MVD), it is the responsibility of the owners to submit proof on their own behalf.
Consequences of Not Meeting Arizona Auto Insurance RequirementsAutomobile insurers will notify the MVD of all policy cancellations and non-renewals which the department will follow up with an inquiry notice to the owner to verify status of their policy; failure to maintain proper AZ car insurance coverage can result in the suspension of a vehicle's registration and/or a driver's license.
In order to have registration and/or driving privileges reinstated, the violator will need to pay any applicable reinstatement fees and provide the Motor Vehicle Department with proof of future of financial responsibility. The department will usually require an SR22 as future proof issued from an auto insurance company licensed to do business in Arizona; this can become costly since the law requires the owner to maintain the SR22 for three years from the date of the suspension; SR-22s must be maintained without a lapse in coverage.
Once the necessary documentation has been submitted and fees have been paid, the registration should be reinstated within 24 hours of receipt. The AZ Motor Vehicle Department recommends that individuals send their information to the representative who they were dealing with in order to help guarantee immediate reinstatement.
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