A Quick Guide to Understanding Arizona's Basic Auto Insurance Requirements?

Answer 1

Arizona's auto insurance requirements are enforced to ensure drivers follow Arizona's Motor Vehicle Financial Responsibility Law. This law require drivers in Arizona to demonstrate their ability to meet the potential financial risks that are associated with driving.

One admirable thing about these requirements is that Arizona offers several ways to meet these requirements fairly. As a result, here is a fast guide to understanding Arizona's auto insurance laws that can help drivers decide the best way to meet Arizona's auto insurance requirements.

Drivers who purchase insurance must purchase bodily injury and property damage coverage.

Drivers who purchase auto insurance must include at least $30,000 of bodily injury damage coverage. Moreover, Arizona drivers must purchase at least $15,000 of individual bodily injury coverage for each passenger that travels regularly in an insured vehicle.

Drivers may purchase a combination policy that includes both of these coverages to satisfy this requirement. Moreover, drivers may use their bodily injury coverage to pay for personal injuries sustained in auto accidents.

Drivers in Arizona must also purchase at least $10,000 of property damage insurance.

This coverage must include protection for at least one accident. However, drivers can purchase a comprehensive auto insurance policy that offers property damage coverage on an as-needed basis to meet this requirement.

Drivers in Arizona can also meet state financial responsibility requirements in other ways.

For example, drivers may post a surety bond of at least $40,000 that can be used to pay for damages and injuries sustained in auto accidents. Moreover, Arizonians can also deposit at least $40,000 in cash instead of purchasing auto insurance. Drivers who choose either of these options must post their deposits with the Arizona State Treasurer's Office. As a result, drivers who wish to post these bonds should contact the Arizona State Treasurer's Office for a deposit form.

Drivers in Arizona who fail to prove they are financially responsible face several problems.

For example, drivers may not register their cars until they prove they are financially responsible. Moreover, drivers who drive a car without this proof can face fines of up to $2,500, mandatory impounding of their vehicles and other civil penalties.

As a result, please contact the Arizona State Department of Insurance for further details.

The Arizona State Department of Insurance offers drivers resources that can help them avoid the hassles of not having adequate proof of financial responsibility. As a result, Arizona drivers who have questions about auto insurance requirements can call toll-free (800) 325-2548 for more information that can help them resolve their auto insurance questions.