If you operate a motorized vehicle on Arizona roadways, including a golf cart or moped, the state requires you to carry liability insurance in case you cause injury or property damage. The Grand Canyon State has minimum requirements for insurance coverage. Still, you can choose from various optional insurance coverages that will provide better financial protection if you’re injured in a car crash, damaged vehicle or at fault in a collision.
Read this guide to learn what auto insurance is required in Arizona and what optional coverages make financial sense for your situation. We’ll also look at the average cost of auto insurance in Arizona.
Arizona Auto Insurance Requirements
Arizona law requires that any motorized vehicle driven on roadways in the state be covered by liability insurance. The law covers all motorized vehicles, including cars, pickup trucks, SUVs, motorcycles, mopeds, golf carts and vans.
Arizona law requires that any motorized vehicle driven on roadways in the state be covered by liability insurance. The law covers all motorized vehicles, including cars, pickup trucks, SUVs, motorcycles, mopeds, golf carts and vans.
Arizona requires all vehicles to have minimum bodily injury coverage that provides $25,000 for the death or injury of one person and $50,000 for the death or injury of two or more people in one accident. You must also have property damage liability coverage of at least $15,000 per accident.
There may need to be more than these minimums to cover all the medical payments, lost wages, damaged property and other expenses that result from an accident. If you don’t have enough insurance, the injured people may sue you, and the court could order you to pay more.
Types Of Auto Insurance Coverages Suggested For Arizona
Purchasing an auto policy that goes beyond minimum coverage requirements is a good idea. Higher coverage limits protect you from paying a large amount of money if you cause an accident. A full policy also protects you if you’re injured by another driver who doesn’t have adequate insurance to cover all your medical bills and other accident-related expenses.
Here are some types of optional auto insurance recommended in Arizona:
Liability insurance
This coverage pays for injuries or damages resulting from an accident that’s your fault. It covers medical or funeral expenses for the people you injure or kill and repair or replacement of property you damaged. However, it doesn’t cover your medical bills or damage to your vehicle.
While Arizona sets a minimum required amount of bodily injury and property damage insurance, you can buy more liability insurance to cover you in case of a bad accident. “Full coverage” insurance is typically considered to be bodily injury insurance that will pay up to $100,000 per person and $300,000 for multiple people per accident, with $50,000 in property damage coverage.
Uninsured/underinsured motorist coverage
This optional insurance covers medical expenses for the occupants of your vehicle if the driver at fault for an accident has no insurance or does not have enough insurance.
Medical payments coverage
This optional coverage pays medical expenses for you and others riding in your vehicle, even if you are at fault for the accident.
Collision coverage
This optional coverage pays for damages to your vehicle, whether they result from hitting another car, a rollover accident or similar collision-related damages.
Comprehensive coverage
This optional coverage pays for damage to your car that results from non-collision events, such as vandalism, theft or a hail storm. If you lease your car or are paying off a loan for the vehicle, the lender can require you to purchase collision and comprehensive coverage.
How Much Is Car Insurance In Arizona?
The cost of auto insurance in Arizona varies based on a variety of factors, including:
- The age, make and model of the car
- The age and gender of the insured drivers
- Where you live in Arizona
- Your driving record
Additionally, Arizona allows insurance companies to consider your credit history when determining your insurance rate. Individuals with a low credit score may be charged more than those with a high credit score. Insurance companies can also share information about your claims record with other insurance companies, and a history of claims can impact the rate you pay.
According to Bankrate, the average cost of auto insurance in Arizona varies by city, with the highest average rate in Phoenix. Phoenix residents pay an average of $1,957 annually for full coverage, including liability insurance, uninsured motorist coverage, collision and comprehensive insurance.
The average cost of auto insurance in other Arizona cities is $1,735 in Chandler, $1,753 in Gilbert, $1,799 in Mesa, and $1,751 in Tucson.
Bankrate also calculated how much having a blemish on your driving record impacts average auto insurance rates in Arizona. Drivers with speeding tickets pay 28% higher rates than those with a clean driving record. Rates increase 44% when your record includes an accident and 95% when you have a DUI.
The Department of Insurance and Financial Institutions (DIFI) has published an extensive list of Arizona’s average insurance costs based on vehicle and driver situations.
Tips When Shopping For Auto Insurance In Arizona
By consulting the DIFI list, you can see which insurance companies may provide lower rates for your situation. Here are other steps you can take when shopping for car insurance:
- Ask about a multi-policy discount: If you already buy homeowners or renters insurance from a company, you may be eligible for a discount when you purchase auto insurance from them.
- Find the deductible that best meets your needs: The deductible is the amount you pay yourself before the insurance company pays a comprehensive or collision claim. With a higher deductible, you lower the premium. However, if paying a $2,000 deductible will strain your finances, it might be better to pay a little more for a lower deductible.
- Sign up for a usage-based insurance plan: The insurer tracks your driving habits, such as speed, hard braking, and mileage. You may pay less with these plans if you’re a safe driver.
How Can You Save On Auto Insurance In Arizona?
All Arizona drivers need auto insurance to help them pay for medical expenses resulting from accidents. You may also want coverage to pay for damage to your car, whether a crash or a natural disaster causes it.
Arizona Central Credit Union members are eligible for reliable, affordable car insurance through a member-exclusive program. You may be able to save more than $500 annually on car insurance premiums through this exclusive offer1. Contact us today for details about our insurance programs.
Average annual savings based on countrywide survey of new customers from 1/27/2014 to 1/16/2015 who reported their prior insurers’ premiums when they switched to Liberty Mutual’s Group auto and home program. Savings do not apply in MA.
