Arizona Mandatory Auto Insurance

Arizona requires mandatory auto insurance i.e. that every motor vehicle operated in Arizona be covered by one of the statutory forms of financial responsibility, more commonly called liability insurance, through a company that is authorized to do business in Arizona. This includes golf carts, motorcycles and mopeds. In AZ car insurance is required immediately after registration, before driving the vehicle.

  Minimum levels of financial responsibility are:

  * $15,000 bodily injury liability for one person and $30,000 for two or more persons
  * $10,000 property damage liability

 Law enforcement officers will ask you for proof of insurance at the time of traffic stops or accidents. Insurance companies notify MVD of all policy cancellations, non-renewals, and new policies. If your insurance company sends MVD a notice that your policy is no longer active, we will send you an inquiry notice to verify insurance status.

 Failure to maintain proper insurance could lead to the suspension of your vehicle registration and/or driver license. To reinstate these privileges, fees and future proof of financial responsibility must be filed with MVD. The future proof requirement is most commonly an SR22 form from an insurance company. This can be expensive to the vehicle owner, especially since the law requires the owner to carry the SR22 for three years from the date of suspension.

All vehicles registered in Arizona must be insured by a company licensed to do business in this state. Arizona residents who are out of state (including military personnel), however, may submit a De-Insured Certificate on a vehicle, on a short-term basis.

 De-insurance is a method of temporarily not maintaining the required insurance on the vehicle until it is ready to be driven or placed on the road again. A de-insured vehicle will not be suspended due to lack of insurance unless it is driven on the roadways of this state. To de-insure your vehicle, complete the on-line De-Insured Certificate. Once you have submitted the form, the information will be entered onto the vehicle record, within 2 business days.

 A suspension could have been generated for one of several reasons:
 1) MVD has not received proof of Arizona insurance
 2) There was a lapse in insurance coverage
3) There was an accident case opened
 4) A newly registered vehicle may not have been on system when insurance information was received
 5) There was a VIN (vehicle identification number) error, either entered into the system incorrectly or provided incorrectly by the insurance company.

State law requires that the insurance company and the owner submit proof of Arizona insurance within 30 days after initial registration. Insurance companies are also required to routinely notify MVD of all policy cancellations, renewals and new issuance.

To clear a registration suspension you must provide proof of Arizona insurance at the time of the suspension. If proof cannot be obtained, an SR-22 (for all owners listed on the registration on the date of the suspension) must be obtained from an Arizona-authorized insurance company, and a $50.00 reinstatement fee must be paid. The SR-22 must be maintained for three years from the date of suspension with no lapse in coverage.

 For reinstatement fees: Payment may be made by cash, cashier's check or money order. Some offices accept credit cards. Cash and credit card not accepted by mail. No personal checks accepted.

When proof of auto insurance is provided proof of insurance plates and registration will be reinstated. In some cases reinstatement is immediate, in others within 24 hours after receipt; provided the information submitted meets the requirements of the law. Also, you must ensure that the information is sent to the Motor Vehicle Department representative with whom you spoke, to guarantee immediate reinstatement of plates and registration.

If you are involved in an accident and the other driver did not have insurance; the MVD can provide their insurance information. Complete an accident insurance verification packet from their office, and insurance information can be obtained in this manner. There is a $3.00 fee for this service. Contact the MVD Customer Service Call Center and request that we mail you a packet. Once the appropriate forms have been completed and submitted, we will initiate an investigation. For a $3.00 fee, insurance information on file will be released to you. If no information is available, you will be so advised. In this event, it is probably in your best interest to file a civil suit with the Clerk of the Superior Court and obtain a judgment. You can then file the judgment with MVD, and we will suspend the individual's driving privileges until the judgment is satisfied with the court.