Arizona Auto Insurance Requirements
Every driver in Arizona is legally required to be covered by a current auto insurance policy. Minimum coverage requirements in Arizona are mandated by the Arizona Department of Insurance. Motorists are required to demonstrate financial responsibility prior to registering a vehicle. The following minimum coverage is required on every vehicle, except as noted below:
(Source: Arizona Department of Insurance)
Driving without the mandatory liability insurance in Arizona will result in a license plate and driver’s license suspension for three months and a $500 fine for the first offense; penalties increase significant for subsequent offenses within 36 months.
The Arizona Automobile Insurance Plan is available to drivers who are unable to obtain such coverage through the voluntary market. More information is available on the AIPSO website.
Alternatively, drivers not wishing to carry basic liability insurance in Arizona may either deposit cash, a certificate of deposit, or bond in the amount of $40,000 with the state treasurer. A certificate of financial responsibility will be issued in lieu of an insurance card.
Factors Influencing Car Insurance Premiums in Arizona
Finding cheap car insurance in Arizona is an easier task than in many other states, as Arizona ranks 41st in average car insurance costs. While many factors go into underwriting auto insurance, Arizona insurance laws give good drivers the opportunity to qualify for cheap car insurance in comparison to other states. Reasons include:
• Population density, which is concentrated in a few urban areas.
• Vehicle repair costs are generally lower in Arizona.
• PIP / no-fault coverage is not required in Arizona
• Overall accident rates are lower than national averages.
• Auto insurance fraud cases are below national averages.
• Vehicle theft rates, however, are well above national averages.
The average auto insurance premium for residents in Arizona is $1,280 in 2011; the national average is $1,790.
Tips for Obtaining Cheap Car Insurance in Arizona
• If you’re over 55, consider taking an approved defensive driving course
• College graduates receive discounts
• Bind multiple policies (homeowners, life, auto) with the same provider
• Maintain a good credit score
• Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
• Discuss affinity discounts with your insurance provider
• Drop comprehensive and collision insurance on older vehicles
Arizona Statistics
• Auto Theft: Arizona suffers from one of the highest rates of auto theft in the nation, but this rate has been decreasing consistently over the past 10 years:
(Source: Auto Thiefs)
• Automobile Accidents: Although total vehicle miles traveled have remained fairly constant over the past five years, the number of fatalities on Arizona roads has decreased nearly every year. 2009 saw a substantial decrease in the number of deaths in car crashes:
(Source: National Highway Traffic Safety Administration)
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