Arizona car insurance rates

For Arizona policies issued or renewed beginning July 1, 2020, the minimum liability limits are $25,000 for bodily injury to one person, $50,000 for two or more people, and $15,000 for property damage (A.R.S. 28-4009). Before that date the floor was 15/30/10, and that older tier still applies to holders of a self-insurance certificate.

Uninsured and underinsured motorist coverage are optional in Arizona: the insurer must offer both in writing on a form approved by the director, and the buyer decides (A.R.S. 20-259.01). Under A.R.S. 28-4135, a first violation for driving without coverage carries a minimum civil penalty of $500 and a three-month suspension or restriction of driving privileges, subject to the exceptions in 28-4137.

A.R.S. 28-4009: two tiers keyed to July 1, 2020

An insurer or producer selling liability policies on six or fewer vehicles must make a policy at exactly these minimum limits available when a named insured or applicant who meets its underwriting criteria asks for one (A.R.S. 20-266). The 28-4009 floor is also the number a certified SR-22 policy must meet. For context across states, see state minimum liability limits explained.

UM and UIM: a written offer, then the buyer's choice

Section 20-259.01 is titled with the words "uninsured optional; underinsured optional," and its text matches. Every insurer writing auto liability must make both coverages available by written notice, using a form the director has approved. A producer who uses that form meets the producer's standard of care in explaining the coverage.

The offered limits must reach at least the policy's bodily injury limits. A buyer can take UM at any amount up to the liability limits but not below the 28-4009 minimums, and UIM at any amount up to the liability limits. The declarations page is treated as the final expression of the named insured's decision to buy or reject, and it binds everyone insured under the policy.

A fresh offer is not required at renewal, when a policy is transferred, substituted or modified, when a lapsed policy is reinstated, or after the state changes the minimum limits. No form is needed if the buyer takes UM and UIM equal to the bodily injury limits.

Penalties for driving uninsured, A.R.S. 28-4135

Drivers must keep evidence of current coverage in the vehicle, and it may be shown on a phone. Failing to produce it when an officer asks is a civil traffic violation, but the citation is dismissed if the driver brings qualifying evidence to court by the date on the ticket showing coverage was in force when it was issued. Except as provided in A.R.S. 28-4137, the penalties for actually lacking coverage step up within a 36-month window:

An owner who will not drive a vehicle can certify to the department that it is nonoperational, renewing that certification each year; the department keeps a registration indicator on the vehicle until an insurer reports coverage or the owner shows proof (A.R.S. 28-4152). The general consequences of a gap are covered in what happens when car insurance lapses.

SR-22 filings under Title 28, Chapter 9

Arizona's statutes describe the SR-22 as a certificate of insurance an authorized carrier files with the director, certifying that a motor vehicle liability policy is in effect for the person required to show proof (A.R.S. 28-4077). The certificate must list the covered vehicles unless it is issued to someone who does not own a vehicle. Instead of a certificate, a person may deposit $40,000 in cash or certificates of deposit with the state treasurer (A.R.S. 28-4084).

Once a carrier certifies a policy, it cannot cancel or terminate that coverage until at least ten days after filing a cancellation notice with the director (A.R.S. 28-4081). If the proof stops meeting its purpose, the director must require new proof and suspend the license and registration until it is filed (A.R.S. 28-4087). On request, the director may waive the filing requirement at any time after three years from the date proof was first required (A.R.S. 28-4088(A)(3)(a)). A person whose proof was returned after surrendering a license who reapplies within that three-year window must re-establish proof for the rest of the period.

Claim-handling deadlines in A.A.C. R20-6-801

A separate statute, A.R.S. 20-269, requires motor vehicle insurers to accept claim communications electronically through a method they designate, and to confirm receipt within ten business days. Fax can be offered only alongside another electronic option.

The regulator: DIFI

Arizona's insurance regulator is the Department of Insurance and Financial Institutions, known as DIFI (A.R.S. 20-101). By statute, DIFI compiles comparisons of premiums and fees charged at policy inception, plus complaint ratios, for auto policies covering six or fewer vehicles. Each comparison must include at least five hypothetical insureds in urban areas and five in rural areas, and the comparisons are forwarded to the Department of Transportation to be made public (A.R.S. 20-265). The claim rule above also refers inquiries to "the Department," meaning DIFI, which an insurer must answer within 15 working days. DIFI's own website could not be read for this page, so its complaint form and phone line are not listed here.

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