Minimum Arizona Insurance Requirements
Drivers in the state of Arizona are required to demonstrate proof of financial responsibility or the minimum amount of liability automobile insurance from a Arizona licensed company whereas $15,000 covers a driver’s legal obligation to pay for an accident that results in the injury of another party; $30,000 covers an injury of two or more parties; and $10,000 covers property damage. Such coverage is required prior to operating a vehicle.
Arizona Insurance Penalties
Drivers must be able to demonstrate proof of automotive insurance at all times when asked by law enforcement during a traffic stop or accident. In addition, automobile drivers must be able to demonstrate proof of automobile insurance when the DMV is notified of a policy cancellation, non-renewal, or a new policy.
Failing to demonstrate proof of auto insurance results in registration and/or driver license suspension. Other reasons for suspension include an accident case, a VIN (vehicle identification number) error occurred, delayed information, out-of-state automobile insurance information was received, or an automobile insurance company provided incorrect information. Reinstatement requires a $50 fee and proof of future financial responsibility for the next three years. In case of a wrongful suspension, drivers can file a De-Insured Certificate form.
After appropriate insurance has been proven, a driver’s registration and/or driver license can be reinstated within 24 hours.
De-insurance
A de-insured vehicle is a temporarily uninsured vehicle. Although such a vehicle may not be driven, it’s not suspended.
Out-Of-State Insurance
All automobile insurance except insurance issued from a company authorized to do business in Arizona is invalid. Arizona drivers who leave the state may submit a De-Insured Certificate for a temporary period.
Automobile Accidents
Drivers who were involved in an accident and who could not collect valid information from the other party for whatever reason can file an accident auto insurance verification packet for an investigation. After paying a $3.00 fee, drivers will receive pertinent automobile insurance information if it’s on file. If no information is on file, drivers may file a civil suit against another party to obtain a judgment. The DMV will then file the judgment and suspend the other party’s driving privileges pending resolution.
