Every driver in Arizona must provide proof of financial responsibility for damages caused by a car accident. It’s important to understand exactly what “proof of financial responsibility” means as well as the fines and penalties associated without having this proof. Below is the lowdown on Arizona car insurance and driving safety.
Average cost of car insurance in Arizona
The National Association of Insurance Commissioners (NAIC) states that $811.45 is the average annual expenditure for car insurance in Arizona.
They broke this figure down to:
$490.78 is the average annual liability insurance expenditure.
$254.85 is the average annual collision insurance expenditure.
$180.88 is the average annual comprehensive insurance expenditure.
Young Drivers in Arizona
Young drivers in the Copper State pay a higher premium than more experienced drivers in the area. Our case study showed that the average premiums for a young driver are as follows:
- $1631 for state minimum coverage1,
- $2616 for basic full coverage2 and
- $3611 for premium full coverage3.
Compared to other types of drivers, young drivers take up a low percentage on the road. Nevertheless, they have been known to statistically have higher accidents and crashes. This is what the insurance companies look at when providing a quote.
Female Drivers in Arizona
A 35 year old married female driver with 12 years of driving experience pay considerably less insurance than a young driver. The average premiums we found are:
- $507 for state minimum coverage,
- $982 for basic full coverage and
- $1350 for premium full coverage.
For a female driver, the city of Kingman in Mohave County, with a population of 28,393 (2010, latest data4) produced the cheapest rates.
Senior Drivers in Arizona
Senior drivers who have a long driving experience with a good driving history can expect to pay fair rates in AZ. Here is what we found:
- $510 for state minimum coverage,
- $963 for basic full coverage and
- $1300 for premium full coverage.
Our methodology5 suggests that a driver that has many years on the road with no accident will pay less on insurance than a novice driver.
Minimum car insurance requirements
Car insurance laws in Arizona are different than in most states.
Instead of requiring car insurance outright, the state gives drivers the choice between carrying liability insurance for each registered vehicle or making a $40,000 deposit to the Office of the Arizona State Treasurer to be used to cover damages in the event of a car accident.
The vast majority of residents choose the first option. If you opt to carry car insurance, you must make sure it meets the state’s Mandatory Insurance Laws. These laws state that the minimum coverage limit for liability insurance is $15,000/$30,000 for bodily injury/death and $10,000 for property damage.
Several options are available from Arizona car insurance providers to bolster your coverage. These include collision coverage, comprehensive coverage, uninsured motorist coverage, underinsured motorist coverage, medical payouts coverage, rental reimbursement coverage, and full glass coverage.
Keep it in mind that Arizona is not a “no fault” state. Instead, you (and your insurance provider) must pay for any damages if you’re considered responsible for the accident by the court.
Violations and penalties
Get caught without car insurance (or another form of proof of financial responsibility) and you’ll face serious penalties.
First-time offenders will receive a $500 fine and have their driver’s license suspended for 3 months. An additional $35 fee is required to reinstate your driver’s license.
Second-time offenders will receive a $750 fine and have their driver’s license suspended for 6 months. Once again, an additional $35 fee is required to reinstate your driver’s license.
All subsequent offenders will receive a $1,000 fine per offense and have their driver’s license suspended for one year. Reinstate your driver’s license by paying the $35 fee.
Driving safety in Arizona
A study by the Centers for Disease Control and Prevention found that 82% of Arizona drivers and front-seat passengers wear seatbelts compared to the 86% national average.
The risk of driving under the influence, seatbelt or no seatbelt, is highlighted by a study by the National Highway Safety Administration. The organization found that 200 of Arizona’s 773 total driving fatalities were caused by alcohol impaired driving. That’s 26% of the total.
Another study by the Centers for Disease Control and Prevention lists the total vehicle occupant death rate as 7.4 per 100,000 Arizona residents.
Arizona requires all licensed drivers to provide proof of financial responsibility.
The easiest, and most common, way to do this is by carrying the minimum in liability insurance. Your other option is to pay the state a $40,000 deposit to hold in the event that you’re involved in a car accident.
|1||State minimum coverage includes the minimum liability insurance limits required in your state but excludes the following:
|2||Basic full coverage includes:
|3||Premium full coverage includes:
|4||Latest data: The U.S. census is conducted every 10 years as per requirement of the United States Constitution. The 23rd edition and the latest data is the 2010 United States Census. Source: https://en.wikipedia.org/wiki/2010_United_States_Census|
|5||Methodology: To achieve accurate results we obtained estimates for 10 cities in the state: 5 of the largest cities and 5 randomly picked smaller cities. For each city, we collected premiums for 3 levels of coverage: state minimum coverage, basic full coverage and premium full coverage. We used 3 different driver profiles for the case studies. For the young driver profile we used a 20-year-old single male or female with 1 year driving experience. Second, the profile fit that of a 35-year-old married female with 12 years of driving experience. The last profile we used in our studies is a male senior driver who was 68-year-old with 45 years of driving experience. The vehicle we used for all three driver profiles was a 2012 Honda Accord EX.|