Arizona auto insurance laws have made it mandatory for all drivers who are residents of this state to carry proper vehicle insurance coverage. However, Arizona is one of those ten states where the legal minimum limit on auto insurance is the lowest as compared to other states. The average vehicle insurance in this state is only $1,152 while the national average is $1,430. Arizona average is the ninth lowest among all the states in the US.
Penalties For Not Meeting The Legal Requirements
If a driver in the state of Arizona fails to show proof of insurance when asked for the same or if it is found that they are insured at all, they will have to pay certain penalty charges as specified under Arizona auto insurance laws. Even if you have a policy but it has already expired, you will still be liable to pay certain penalties. In general, the penalties include suspension of both the registration of vehicle as well as your driving license. In order to reinstate your license as well as vehicle registration, you will first have to buy or renew (whichever is applicable) an insurance policy with at least the legal minimum coverage. You will also have to pay a reinstatement fee of $50. Besides that, you will also be legally required to purchase SR22 coverage, which is quite expensive to buy and it can be bought only from a state-authorized insurer. This SR22 coverage often also causes an increase in the cost of your current and future insurance policies.
As per Arizona auto insurance laws, the legal minimum coverage must include at least $10,000 for property damage, $30,000 if several persons are injured, and $15,000 if only a single individual is injured in an auto accident. It is often also indicated as “15/30/10″ liability insurance.