Arizona Car Insurance Requirements
The Grand Canyon State is another that offers only one method of securing financial responsibility before registering and driving a vehicle: an auto liability policy from an insurance company licensed to sell car insurance in that state. What makes Arizona somewhat unique is the fact that they do have an option of temporarily de-insuring a vehicle if you need to take it off the road for a specific amount of time. We’ll talk about that in a minute, but for now let’s deal with the requirements for liability insurance.
The state of Arizona requires every car with an Arizona registration to be covered by a minimum liability car insurance policy. That insurance policy must cover at least:
- $15,000 for bodily injury or death to a single victim (per accident)
- $30,000 for bodily injury or death to multiple victims (per accident)
- $10,000 for property damage (per accident)
Arizona’s liability amounts are a little lower the national average, especially where bodily injury is concerned. If you live in Arizona you might want to double the limits just for a little added protection. Doing so doesn’t add that much extra to your premiums.
The De-Insurance Option
The desert climate of Arizona it the perfect environment for old cars owners want to make last for decades. As such, there are lots of car restoration hobbyists and others who might need to take a car off the road for some restoration or repair work. Arizona makes that possible through the de-insurance option.
Car owners can, by submitting a form to the Department of Transportation, remove insurance coverage from a vehicle while still retaining the registration and plates. In such a case an owner is still not allowed to drive the car on public roads during the term of de-insurance. When he’s finished repairing the vehicle he simply insures it again and submits a new form to put it back on the road.
The de-insurance option is one drivers in very few states enjoy. In New York, for example, there is no such thing as de-insurance. If you plan to cancel an insurance policy you must first surrender your plates and registration or face fines and a possible suspension of your license.
Arizona Penalties for Insurance Violations
Drivers in Arizona are required to provide proof of insurance to the DOT as well as any police officer who requests it. Failure to provide that proof usually results in a minimum fine. If it turns out no insurance policy exists, the car’s registration and plates will be suspended until the problem is corrected. Persistent insurance violations can result in a license suspension.