Arizona state auto insurance minimum coverage requirements specify that drivers must have third party liability protection in place. This coverage protects the occupants of the other vehicle when an accident occurs.
The minimum level of bodily injury insurance required by law is $15,000 to pay for injuries and damages suffered by a single accident victim and $30,000 to compensate everyone injured in the same accident. Bodily injury liability coverage also pays out a funeral benefit in the case of a fatal accident.
The property damage portion of the policy pays for repairs to the other driver’s vehicle. It is also used to pay for repairs for other items, such as fences, sheds, buildings and sign posts, which have been damaged in the accident. The minimum amount of this type of coverage required by law is $10,000.
Arizona is a tort state for auto insurance purposes, which means that the driver who is determined to be at fault in an accident is responsible for paying for the damages he or she caused. Choosing a policy with the minimum amount of coverage required under Arizona state auto insurance law means that a driver may not be able to pay for damages caused in a serious accident. In that situation, the at-fault driver is responsible for paying the difference personally.
Physical damage coverage is not specifically required under state law, but consumers who have financed their vehicle may be required to keep collision and comprehensive coverage in place until it has been paid off.