What Is Car Insurance?

Whether you’re a new driver or have been cruising Arizona’s open roads for years, understanding auto insurance may be something you’re invested in. But you may be wondering, how does car insurance work and how much does it cost? 

Here, we’ll walk through many facets of car insurance that may be helpful to you. If you've had a few tickets or a lapse in coverage, this guide may also assist you in navigating insurance as a higher risk driver. Additionally, we’ll help break down car insurance definitions, why it’s required in Arizona, and how you may be able to find affordable auto insurance coverage, even with a tough driving history. 

Car insurance explained: What exactly does it do?  

Car insurance may seem like just another bill, but it can be much more than that. Depending on your policy, having the right insurance for you can help you navigate various accidents while on the road. For Arizona drivers, especially those with high-risk status, car insurance may be able to limit financial burdens while staying compliant with the law.  

To put it simply, car insurance is a financial agreement between you and an insurance company. You will typically pay a monthly or yearly premium, and in return, the insurance company may help cover specific damages from certain accidents. Depending on your coverage, your insurance company may be able to pay for repairs in situations like damage to your vehicle or damage to a third party’s vehicle that you cause.  

If you don’t have car insurance, even minor damage to your car may be expensive to pay for alone. With the right policy that aligns with your needs, you may be able to restrict your out-of-pocket costs when an accident occurs.    

What car insurance is required in Arizona? 

Arizona, like most states, requires drivers to carry car insurance. The state mandates that all drivers have a certain level of minimum liability coverage on their insurance policies. Liability insurance can help pay for repairs to a third party’s vehicle and injuries to others from an accident you cause.  

As of May 2025, here are the minimum liability insurance limits in Arizona: 

• $25,000 for bodily injury per person 
• $50,000 for bodily injury per accident 
• $15,000 for damage to a third party’s property 

Since July 2020, drivers in Arizona must also have uninsured motorist bodily injury coverage (UMBI) on their policies alongside liability insurance. This coverage can help pay for your medical expenses and lost wages if you get into an accident with an at-fault uninsured driver. The Arizona limits for UMBI are:  

• $25,000 for bodily injury per person 
• $50,000 for bodily injury per accident 

Though these mandates are important for you to know as a driver, it may also be helpful to remember these are just the bare minimum. If you cause a serious accident, the Arizona minimum limits may not cover the entire costs. That’s why drivers may choose higher coverage limits or select additional coverage that may help prevent financial issues.  

What can car insurance cover?  

When it comes to car insurance, there are other coverages that can help pay for specific accidents that liability coverage won’t cover. Here's a quick rundown of some additional "full coverage" options you may want to be familiar with:  

• Collision coverage: This can help pay for repairs to your car if you're in an accident, regardless of who’s at fault. 
• Comprehensive coverage: This insurance can help cover damage to your vehicle from non-collision events like theft, vandalism, or severe weather.  
• Medical payments (MedPay) coverage: This can help pay for medical bills for you and your passengers after an accident, even if you’re at fault.  

Understanding what common auto insurance coverages are available may help you build a policy that fits your needs and your budget. 

What happens if you drive without insurance in Arizona? 

Driving without insurance isn’t just risky but may come with serious consequences in Arizona. If you’re caught driving without auto insurance, here’s what may occur: 

• Fines: You may receive a fine of $500 to $1,000, depending on how many offenses you’ve incurred.  
• License and registration suspension: You could have your license suspended for up to three months for a first offense.  
• SR-22 requirement: You may need to file for an SR-22, which is a certificate of financial responsibility. If you’re ordered by a court to get one, you’ll typically need to maintain the SR-22 for at least three years.  
• Higher future insurance premiums: Getting caught driving without insurance may negatively affect your premiums.   

If you’re already considered a high-risk driver, these penalties may be even worse. It may also be harder, and more expensive, to get insured again once your record shows a lapse in coverage. This is why driving with insurance that adheres to Arizona laws may be crucial for avoiding legal and financial problems.  

Getting a policy as a high-risk driver 

If you’ve gotten into accidents before or have had lapses in your insurance coverage, you may be considered as higher risk by insurers. Here are a few tips that may be helpful to you as a high-risk driver: 

• Know Arizona's requirements: Making sure your policy meets at least the state coverage minimums can help you avoid legal penalties.  
• Understand what you need: Figuring out your budget and your needs may help you pick the right coverage for you. If you don’t have savings to pay for out-of-pocket expenses, you may want to opt for more coverage and higher coverage limits.  
• Ask about discounts: Even if you’re a high-risk driver, you may be able to save on car insurance. Your insurer may have discounts available like bundling multiple cars on one policy or paying your premium in full. You may even be eligible for a discount if you take a defensive driving course. Check with your insurer to see what discounts may be available for you.  

If you’re worried about paying extreme prices for car insurance as a high-risk driver, you can contact Access Auto Insurance Agency, LLC (Access Auto). Our team specializes in assisting high-risk drivers in Arizona, ready to help you find a policy that fits your budget. Our bilingual agents can help guide you in English or Spanish, as well as compare insurance quotes from 20+ trusted carriers.  

Getting a policy today  

Though car insurance can help you follow state laws, it may also help prevent you from paying large out-of-pocket expenses. Whether you’ve had a complicated driving history or are just looking for better rates, Access Auto is here to assist you with your insurance journey. Call us today at 602-922-3595 or visit an Arizona store near you for a free personalized quote.  

Disclaimer:  

This material is for general informational purposes only. Products, services, and discounts referenced herein are not available in all states or in all companies. All statements are subject to the terms, exclusions, and conditions of the applicable policy. In all instances, current policy contract language prevails. Coverage is subject to individual policyholders meeting the insurer's underwriting qualifications and state availability. Other terms, conditions and exclusions may apply.