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What You Need to Know About the New Arizona Insurance Minimums

By The Husband and Wife Law Team on February 24, 2021

Arizona has historically had one of the lowest auto insurance minimums in the country. However, that has recently changed. The auto insurance minimums were raised in 2020, and all Arizona drivers should be aware of what this increase actually means.

What Are Insurance Minimums?

Nearly all states in America have a minimum amount of car insurance that is required for all vehicles on the road. By setting this minimum, a state can try to ensure that anyone involved in a car accident will at least be partially covered for their injuries and damage to the vehicles involved. Driving without the required minimum insurance is a crime, and can result in serious fines.

Arizona is no exception to this rule. This state has had an auto insurance law since 1972, meaning that for the past 50 years, car insurance has been a legal requirement. Given the plethora of insurance companies available in Arizona, there has never been an excuse to drive without insurance, since these minimum laws were passed all those years ago. Those who do drive without auto insurance put everyone on the roadway at risk, as a single accident can result in victims being unable to seek compensation for medical bills and other damages.

In fact, drivers without auto insurance are often the culprits behind hit-and-run accidents. That is because these drivers know that if they stay at the scene of the crime, they will be fined, as well as have their licenses suspended for a year, for driving without insurance. If they flee, there is a chance that they won’t be caught and thus won’t have to face any consequences for their negligence, despite the fact that a hit-and-run is a far more severe crime than not having insurance.

The New Minimums

While insurance minimums are a good way for the government to try to ensure that everyone involved in an accident is financially protected, these minimums often do not cover how much an accident actually costs. Before 2020 in Arizona, the minimum liability policy had:

  • $15,000 for bodily injuries per person
  • $30,000 for bodily injuries per accident
  • $10,000 for property damage

Anyone who has suffered a serious injury can tell you that $15,000 is nowhere near enough to cover the medical bills. These low minimums often meant that accident victims who filed a successful claim would very quickly hit the policy limit, leaving them with few avenues to recover compensation from.

Thankfully, the minimum has now been changed. Drivers are now required to meet the insurance minimums of:

  • $25,000 for bodily injuries per person
  • $50,000 for bodily injuries per accident
  • $15,000 for property damage

This increase should help ensure that all accident victims get the coverage they need from the at-fault driver to pay for their medical expenses, and cover non-economic damages, such as emotional trauma and diminished quality of life.

Making Sure You Are Covered

If you are an Arizona driver, be sure to update your auto insurance policy to reflect the new increase. However, we would also suggest that you raise your auto insurance to be higher than the minimum. The truth is these minimums are rarely enough to cover a serious injury, and keeping your auto insurance as low as possible could leave you personally liable if you cause a bad accident. While these policies are useful, it is always best to have as much protection following an accident as possible.

If you have already been involved in a car collision and need help getting the compensation you deserve, call our firm, Breyer Law Offices, P.C. We have years of experience working with car accident victims in the Phoenix area, and know the personal injury ropes. To start your free consultation, call us at (602) 457-6222. We fight for our clients’ rights.

Posted in: Auto Insurance

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