The first thing you should know is that car insurance is mandatory and required by state law.
Arizona also has financial responsibility laws, meaning if you’re involved in a crash you’ll need to prove that you can cover the damage costs up to a point. Vehicle insurance is how we as drivers comply with these laws.
According to Arizona Auto Insurance Law, the minimum amount of liability coverage needed for personal injury is $15,000 per person and $30,000 per accident. Additionally, the minimum amount of liability coverage needed for property damage is $10,000.
It’s a good idea to check with your insurance provider now, before you’re involved in a crash, to make sure your coverage is at least for these minimums.
Not having this insurance when you’re in a crash is expensive. Besides the costs of damages that you’ll have to pay out-of-pocket, you may be forced to pay a $250 fine for not complying with the financial responsibility laws and not having the proper amount of insurance.
Arizona’s insurance laws are based on the tort liability system, meaning the state has a concept of fault. If you or your passengers are injured in a crash that was not your fault, you have the right to sue the at-fault driver for injuries, pain and suffering.
Conversely, injured parties have the right to sue you if you’re the driver at fault. If you don’t have insurance, you could find yourself in a financial mess if you cause a crash.
This post was intended to provide general information only and is not intended as specific legal advice. You should not rely upon this information alone, but should consult legal counsel regarding the application of the laws and regulations discussed and as applied to your specific case or circumstance.