Key Takeaways
- Arizona requires minimum auto liability limits of 25/50/15 ($25,000 per person/$50,000 per accident bodily injury/$15,000 property damage) - increased in 2025
- Arizona is an "at-fault" state using pure comparative negligence (recovery reduced by percentage of fault)
- Uninsured/Underinsured Motorist (UM/UIM) coverage must be offered but can be rejected in writing
- Arizona does not require Personal Injury Protection (PIP) - it is a tort state
- Proof of financial responsibility is required and can be verified electronically
Arizona Auto Insurance Requirements
Arizona has specific auto insurance requirements that producers must understand.
Mandatory Coverage
Arizona requires all registered vehicles to have liability insurance with minimum limits:
Minimum Liability Limits (25/50/15)
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury per Person | $25,000 |
| Bodily Injury per Accident | $50,000 |
| Property Damage | $15,000 |
Important: Arizona increased its minimum limits to 25/50/15 effective January 1, 2025. Previously, limits were 25/50/15 (property damage was $10,000).
Memory Tip
Remember "25/50/15" for Arizona minimum limits.
Proof of Insurance
Arizona drivers must carry proof of insurance:
- Physical insurance card, OR
- Electronic proof on smartphone
- Arizona Motor Vehicle Division (MVD) verification
- Penalties for driving without insurance include fines and license suspension
Arizona's At-Fault System
Arizona uses pure comparative negligence:
How It Works
| Feature | Description |
|---|---|
| System Type | Pure comparative negligence |
| At-Fault Party | Responsible for damages |
| Shared Fault | Recovery reduced by percentage of fault |
| 99% Rule | Can recover even if 99% at fault (only 1%) |
Example
If Driver A is 70% at fault and Driver B is 30% at fault:
- Driver A can recover 30% of their damages from Driver B
- Driver B can recover 70% of their damages from Driver A
Exam Tip: Arizona uses pure comparative negligence, meaning you can recover even if mostly at fault. This differs from modified comparative negligence states with a 50% or 51% bar.
Uninsured/Underinsured Motorist Coverage
Arizona requires insurers to offer UM/UIM coverage:
UM/UIM Requirements
| Feature | Details |
|---|---|
| Offered | Must be offered by insurer |
| Required to Purchase | No - can reject in writing |
| Minimum if Purchased | Equal to liability limits |
| Rejection | Must be in writing on DIFI-approved form |
| Stacking | Available in Arizona |
Written Rejection
- Must use specific rejection form
- Rejection applies to all vehicles on policy
- Rejection remains effective until insured requests coverage
- Can add UM/UIM later
Personal Injury Protection (PIP)
Arizona does NOT require PIP coverage:
Arizona Tort System
| Feature | Details |
|---|---|
| PIP Required | No |
| Medical Payments Coverage | Optional |
| Right to Sue | Yes - at-fault system |
| Threshold to Sue | None (pure tort) |
Exam Tip: Arizona is a tort state, not a no-fault state. There is no PIP requirement. Injured parties sue the at-fault driver.
Arizona Auto Insurance Rating
Arizona uses file and use for auto insurance rates:
Permitted Rating Factors
- Driving record
- Years of experience
- Annual mileage
- Vehicle type and safety features
- Territory
- Credit-based insurance scores (with limitations)
Credit-Based Insurance Scoring
Arizona allows credit-based insurance scores but:
- Must disclose use of credit information
- Consumer can request re-scoring
- Absence of credit cannot be sole reason for adverse action
- Cannot use for workers' compensation
Financial Responsibility Verification
Arizona verifies insurance electronically:
- AZMVDNOW online verification system
- Insurers report coverage to MVD
- Random verification mailings
- Penalties for lapses in coverage
What are Arizona's minimum auto liability insurance limits (as of 2025)?
Under Arizona's pure comparative negligence rule, what happens if a driver is 80% at fault?
Is Personal Injury Protection (PIP) required in Arizona?