Accident Auto Insurance: Arizona

All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.

Types of auto insurance coverage:

Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.

Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.

Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.

Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).

Arizona Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $15,000 for one person; $30,000 for two people; $10,000 for property damages in an accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by Arizona. All vehicles, including motorcycles, mopeds, and golf carts, must have valid liability insurance.

Arizona's Proof of Auto Insurance
In the event of an auto accident or traffic violation in which you are stopped by an officer, you are required to show proof of insurance. You are also required to show proof of auto insurance when registering your vehicle. Insurance companies are required to notify the Arizona MVD (Motor Vehicle Department) if you cancel or do not renew your auto insurance and the MVD will contact you for proof of insurance.
Arizona Law Auto Insurance Penalties
In the event of an auto accident, if you do not show proof of minimum liability auto insurance, you are subject to monetary penalties associated with vehicle registration suspension, or license suspension. If your driver's license gets suspended, you will likely be required to carry the more expensive SR-22 insurance policy for up to 3 years. An SR-22 auto insurance policy is liability auto insurance with an additional responsibility from the insurance company - they are required to notify the Arizona MVD immediately if the driver is without current valid auto insurance - if the policy lapses, is cancelled, or terminated.

Arizona Auto Insurance Exceptions
Vehicles that are not in use on roads, for reasons such as long-term storage or restoration, are not required to have insurance, but you must apply for permission to forego insurance on your out-of-use motor vehicle.

As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marrital status, location, etc.