Drivers in AZ must have insurance in place or face consequences. A police officer will likely ask to see proof of insurance as a matter of course during a traffic stop. You will definitely be asked to produce your insurance card if you have been involved in an accident.
If your policy lapses for any reason, your car insurance company will notify the Department of Motor Vehicles (DMV). They are regularly in touch with this agency to share information about policy cancellations and non-renewals. If you change insurance companies or are a new driver who obtains a new policy, this information is also shared with the DMV.
When an insurance company notifies the DMV that a driver does not have insurance coverage in place, a notice asking him or her to verify the status of their insurance is mailed out. Failure to have insurance coverage in place may mean suspension of the driver’s license and car registration.
If your driver’s license and car registration are suspended because of lack of insurance, you will need to get an SR22 form from your insurance company. This is a contract stating that you will have insurance in place continuously during its term. In most cases, an SR22 must be in place for three years. Not all insurance companies are willing to issue an SR22, and you will be paying more for your coverage if you are required to obtain one.