Legal Limits of State Car Insurance in Arizona
The Arizona Department of Transportation reported that it registered nearly five million vehicles in 2010. Each of these registered vehicle owners, as well as every licensed driver within the state, is subject to Arizona's financial responsibility requirements. Regulated by the Arizona State Legislature and the Department of Insurance, the state's financial responsibility requirements apply to all registered private passenger vehicles, including motorcycles and mopeds.
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Liability Limits
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As with most states, Arizona allows residents to meet the state's financial responsibility requirements by carrying auto insurance or by securing a bond or certificate of insurance. Individuals who elect to maintain auto insurance must meet, at least, the state's minimum liability requirements to remain compliant. Arizona's minimum bodily injury and property damage limits are $15,000 per person; $30,000 per accident, with $10,000 in property damage.
Uninsured Motorist Protection
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Although not required, the state of Arizona recommends that drivers maintain uninsured and underinsured motorist coverages. In fact, the Insurance Research Council reports that Arizona carries one of the highest uninsured motorist rates in the country, with 18 percent of its drivers being uninsured. Drivers who elect to carry these coverages must select limits of at least $15,000 per person and $30,000 per accident.
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Self-Insurance and Bonds
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Arizona drivers who do not want to maintain auto insurance can secure a bond, certificate of deposit or certificate of insurance. At minimum, the elected bond or deposit must be $40,000 per driver. Drivers who choose this option must complete the application process with the Arizona Department of Transportation and receive approval before this option can used for compliance.
Commercial Vehicles
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Commercial vehicles are subject to more stringent insurance requirements. Unlike private passenger vehicles, commercial vehicles are required to maintain combined single liability limits. The coverage requirements vary based on the vehicle's weight, use and type of material that will be transported. Commercial vehicle minimum requirements are as low as $750,000 and as high as $5 million. All commercial vehicles are required to maintain uninsured motorist protection coverages of at least $300,000.
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