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Minimum Coverage Required for Arizona Drivers
Arizona drivers are required to have proof of financial responsibility when operating a motor vehicle on Arizona roadways. Most of us demonstrate our financial responsibility by buying an auto insurance policy.
An auto insurance policy states the maximum amount that the insurance company will pay. This is know as the "coverage limit." Arizona Revised Statutes § 28-4009 (as amended by Laws 2019, Chapter 301 - Senate Bill 1087) establishes the minimum amount of liability insurance coverage (the minimum coverage limit) that drivers can buy. Until June 30, 2020, the minimum coverage limit was:
- $15,000 for one person sustaining bodily injury or death in an accident,
- $30,000 for two or more persons sustaining bodily injury or death in an accident, and
- $10,000 for damage to others' property.
This is commonly referred to as 15/30/10 coverage.
New Minimum Coverage Limit Effective July 1, 2020
Starting July 1, 2020, the minimum coverage limits are increasing to:
- $25,000 for one person sustaining bodily injury or death in an accident,
- $50,000 for two or more persons sustaining bodily injury or death in an accident, and
- $15,000 for damage to others’ property.
On and after July 1, 2020, all new auto insurance policies that are issued or renewed must provided with at least 25/50/15 coverage limits.
If your current coverage limits are below the new required coverage limits, your coverage limits will automatically be increased to the minimums when your policy renews. Your auto insurance premium may increase to reflect the increased amount of insurance coverage. If your policy renewed before July 1, 2020, you can choose to keep the amount of coverage you had (even if it is below the minimum required level) until your next renewal.
UNINSURED AND UNDERINSURED MOTORIST COVERAGE
Unisured motorist (UM) coverage and underinsured motorist (UIM) coverage pays your medical bills and property damage expenses if you are involved in a crash with a motorist who does not carry any automobile liability insurance (uninsured), or with a motorist whose automobile liability coverage is insufficient to pay the total amount of expenses (underinsured). You could sue the uninsured or underinsured motorist, but even if they are found liable, they may not have the financial resources to pay your costs.
If you already have UM and UIM coverage on your policy that is below the 25/50 coverage limits, your insurer will automatically increase the amount of that coverage to the new minimum 25/50 limits and will adjust your premiums accordingly. You can choose to change your coverages at any time, but if you elect to have UM/UIM coverage, 25/50 is the minimum amount you can have on auto policies purchased or renewed starting July 1, 2020.
Questions about Auto Coverage or Premiums
You may wish to contact your agent or insurance company customer service department to inquire about any potential change to your premium. For more information about financial responsibility requirements, visit the "Arizona Department of Transportation Mandatory Insurance FAQ" web page.