If you injure two people and one has $30,000 in damages while the other has $25,000, your insurance pays $25,000 to the first person (their cap) and $25,000 to the second (their actual damages, within their cap), totaling $50,000 (the per-accident cap). Property Damage Liability $15,000 per accident This covers damage you cause to others' property: - The other driver's vehicle damage - Damaged structures, fences, or other property - Limited to $15,000 total per accident A modern car can easily exceed $15,000 in damage from a moderate collision. The minimum is often woefully inadequate. How "25/50/15" gets used The shorthand "25/50/15" represents the three minimum limits. You'll see policies described as: - 25/50/15 (Arizona minimum) - 50/100/25 (modest upgrade) - 100/300/100 (recommended minimum) - 250/500/100 (better protection) - 500/500/500 (substantial protection) The numbers always represent: BI per person / BI per accident / Property damage. Why minimums are inadequate Several scenarios show how quickly minimum coverage gets exceeded: Single-vehicle moderate injury A 40-year-old hit by a careless driver suffers: - ER visit: $8,000 - Initial imaging and treatment: $4,000 - 3 months of physical therapy: $4,500 - Pain medications: $500 - Lost wages (4 weeks at $5,000/month): $5,000 - Pain and suffering valuation: $15,000 Total: $37,000 The at-fault driver's $25,000 BI limit pays $25,000. The injured party has a $12,000 gap. Single-vehicle severe injury A 35-year-old hit by a drunk driver suffers: - Hospital stay: $50,000 - Surgery: $35,000 - Initial rehabilitation: $20,000 - 6 months of therapy: $15,000 - Long-term wage loss: $25,000 - Pain and suffering: $75,000 Total: $220,000
The at-fault driver's $25,000 BI limit pays $25,000. The injured party has a $195,000 gap. Multi-vehicle accident A drunk driver causes a four-vehicle pileup with 5 injured people: - Total damages across all victims: $250,000 The at-fault driver's $50,000 per-accident limit pays $50,000 total, distributed among the 5 victims. Average payment: $10,000 per person. If any individual victim's damages exceed $25,000, they're capped at $25,000 (the per-person limit), assuming the others can fully recover from the remainder. Other coverages Arizona doesn't require Several important coverages aren't required by Arizona law but are worth considering. Uninsured/Underinsured Motorist (UIM/UM) Coverage for when the other driver has no insurance or insufficient insurance. Given that 11-13% of Arizona drivers are uninsured (among the highest rates nationally), this coverage is essential. Arizona requires insurance companies to offer UIM but doesn't require drivers to purchase it. Many drivers reject it to save $20-50/month, then deeply regret it after an accident. Recommended UIM coverage: at least match your liability limits. Medical Payments (MedPay) Coverage for your own medical bills regardless of fault. Pays: - Your medical expenses up to policy limit - Passenger medical expenses - Treatment regardless of who caused the accident Typical MedPay coverage: $5,000-$25,000. Useful for immediate medical bill payment without waiting for liability determination. Comprehensive Coverage for non-collision damage to your vehicle: - Theft - Vandalism - Weather damage (hail, wind, floods) - Fire - Animal collisions If your vehicle has substantial value, comprehensive coverage is important.
Collision
Coverage for your vehicle damage in a collision, regardless of fault: - At-fault accidents - Hit-and-run damage - Single-vehicle accidents Often required if you have a vehicle loan or lease. Rental car coverage Coverage for rental car expenses if your vehicle is in the shop after an accident. Cost: usually $1-2/ month. Towing and roadside assistance Coverage for emergency towing and roadside help. Often inexpensive add-on. What happens if you drive without insurance Driving uninsured in Arizona has serious consequences. Criminal and administrative penalties Under A.R.S. § 28-4135: - First offense: $500 fine, 3-month license suspension, 3-month registration suspension - Second offense within 36 months: $750 fine, 6-month suspensions - Third offense within 36 months: $1,000 fine, 12-month suspensions SR-22 requirement After uninsured driving violations, you may need SR-22 certification: - A filing demonstrating financial responsibility - Required for 3 years after suspension - Significantly increases insurance costs - Must be maintained continuously Vehicle impoundment Vehicles operated without insurance may be impounded. Civil consequences If you cause an accident while uninsured: - Personal liability for all damages - Possible wage garnishment - Possible asset seizure - Bankruptcy may discharge some judgments
Insurance discount loss
Future insurance rates are dramatically higher: - 30-200% increases possible - Long-term cost much higher than the saved premium - Some insurers won't accept you The "savings" from skipping insurance disappear quickly after any violation or accident. How insurance verifies you're insured Arizona uses several verification methods. Electronic verification Insurance companies report active policies to the Motor Vehicle Division electronically. The MVD can verify coverage: - At any traffic stop - During registration renewal - During random audits Proof at traffic stops Police can request proof of insurance. Failure to produce can result in citations even when you actually have coverage. Crash investigations After accidents, officers verify insurance for all involved parties. Uninsured drivers face citations and consequences. Registration requirements Vehicle registration requires proof of insurance. Lapsed insurance can trigger registration cancellation. How insurance shopping in Arizona works If you're shopping for Arizona auto insurance: Major Arizona insurers Top market share insurers in Arizona include: - State Farm (largest) - Geico - Progressive - Allstate - USAA (for military) - Liberty Mutual - Farmers - American Family Factors affecting rates Your premiums depend on: - Driving history (tickets, accidents) - Credit score (controversial but widely used) - Age and gender (limited use) - Location (urban vs. rural) - Vehicle type and year - Annual mileage - Coverage levels selected - Deductibles chosen - Discounts available
Discounts to consider
Most insurers offer: - Multi-policy discounts (bundling home/auto) - Good driver discounts - Defensive driving course discounts - Anti-theft device discounts - Low mileage discounts - Senior discounts - Military discounts - Student discounts Comparison shopping Get quotes from at least 3-5 insurers: - Online comparison tools (LIMRA, Insure.com, etc.) - Direct insurer websites - Independent agents - Captive agents The same coverage from different insurers can vary by 30-50% in price. Read the policy Beyond price, evaluate: - Coverage limits - Deductibles - Exclusions - Claims-handling reputation - Financial stability ratings - Customer service ratings Recommendations for adequate coverage What should you actually carry? Minimum recommendations For most drivers, consider at least: Bodily Injury Liability: 100/300 ($100,000 per person/$300,000 per accident) Property Damage Liability: 100 ($100,000) UIM/UM: Match liability limits (100/300) MedPay: $5,000 minimum Collision and comprehensive: Yes, with appropriate deductibles Cost difference vs. minimum coverage: typically $30-80/month additional. The protection difference is massive. Higher coverage for greater protection For higher net worth or more conservative protection: Bodily Injury Liability: 250/500 or 500/500 Property Damage Liability: 250 UIM/UM: 250/500 or 500/500 - - - - - - - - ## MedPay: $10,000-$25,000
Cost difference vs. basic: typically $60-150/month additional. Umbrella policies For homeowners with substantial assets: - Umbrella policy adds $1 million+ liability coverage - Cost: typically $200-500/year for $1M - Provides additional UIM coverage - Covers auto and other liability situations Often the most cost-effective way to get substantial liability protection. Impact on injury claims Insurance levels significantly affect personal injury claims. When at-fault driver has minimum coverage Realistic outcomes: - Single victim with minor injuries: usually full recovery within $25K limit - Single victim with moderate injuries: may exhaust the $25K limit, coverage gap - Single victim with serious injuries: $25K is small fraction of damages - Multiple victims: $50K split among them, individual recoveries limited When you have inadequate UIM If your own UIM is at minimums: - Can't fill the gap when at-fault driver has minimum - Serious injuries leave large uncompensated damages - May need to pursue at-fault driver's personal assets - Often results in inadequate recovery When everyone has good coverage Higher coverage on both sides means: - More damages get paid - Less personal asset exposure - Smoother claims handling - Better outcomes for victims Frequently asked questions Is Arizona a no-fault state? No. Arizona is an at-fault state. The at-fault driver's insurance pays for damages caused by the accident. (Some no-fault states use a different system where each party's own insurance pays for their damages regardless of fault.) What happens if the at-fault driver doesn't have insurance? Your UIM coverage pays. Without UIM, you can sue the at-fault driver personally but practical recovery is often limited. - Can I drive a friend's car without my own insurance? The friend's insurance generally covers permissive users, but your own coverage status matters in some situations. If you regularly drive others' vehicles, your own insurance provides backup coverage. Do I need insurance if my car is registered in another state but I drive in Arizona? Generally yes. Arizona has reciprocity for properly insured out-of-state drivers, but if you become an Arizona resident, you should obtain Arizona insurance. Can my rates go up after an accident that wasn't my fault? Generally no for verified not-at-fault accidents, but some companies do increase rates marginally even for not-at-fault accidents. The exact policy varies by insurer. What does "full coverage" mean? "Full coverage" isn't a defined term — it generally means liability plus comprehensive plus collision. The actual coverage levels vary widely. Don't rely on the term; ask about specific limits. Should I file a claim against my own insurance for an accident the other driver caused? Often yes, particularly for property damage or MedPay claims. Claims against your own policies typically don't raise rates (especially for not-at-fault accidents) and provide faster recovery. This article is for general informational purposes only and does not constitute legal advice. To discuss your auto accident or insurance situation, contact Saguaro Injury Law at (623) 887-2002 for a free consultation or take our free case review. Hablamos español. Past results do not guarantee future outcomes.
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If you or a loved one has been injured in Arizona, our team can review your case at no cost. Call (623) 887-2002 or request a free case review.
Disclaimer: This article is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. For advice on your specific situation, please contact a licensed Arizona attorney. Past results do not guarantee future outcomes.