Arizona Motor Vehicle Accident Rules & Laws

Insurance Systems & Requirements

System type: Arizona follows an "at-fault" insurance system, meaning the driver determined to be responsible for causing an accident is legally obligated to cover the resulting damages. This system impacts how compensation is pursued, as accident victims must demonstrate that the at-fault driver’s actions directly caused their injuries or losses. Victims can seek compensation from the at-fault driver's insurance for medical expenses, lost wages, and property damage.

Minimum liability requirements: Effective July 1, 2020, Arizona law requires all drivers to carry at least the following minimum liability coverage:

• $25,000 for bodily injury or death per person in a single accident
• $50,000 for bodily injury or death of two or more people in a single accident
• $15,000 for property damage per accident

These limits ensure financial protection for both drivers and victims in the event of an accident.

Uninsured and Underinsured Motorist Coverage (UM/UIM): While Arizona mandates minimum liability coverage for all drivers, there are situations where these requirements may fall short. Some motorists in Arizona fail to maintain the required insurance, and drivers from other states or countries may operate vehicles without adequate liability coverage.

To address these gaps, Arizona offers Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage as optional policy add-ons:

• UM Coverage: Protects you and your passengers by covering bodily injury expenses caused by a driver without insurance
• UIM Coverage: Steps in when the at-fault driver's insurance limits are insufficient to cover the full extent of your damages

Non-compliance penalties: According to ARS 28-4135, driving without insurance in Arizona can lead to escalating penalties. For a first offense, drivers face a minimum fine of $500 and a three-month suspension of their driver’s license, vehicle registration, and license plates. A second offense within 36 months results in a minimum fine of $750 and a six-month suspension of these privileges. For a third offense within the same timeframe, the penalties increase to a minimum fine of $1,000 and a one-year suspension. 

To reinstate driving privileges, offenders must pay the required fees and file an SR-22 form. The form must be maintained for three years and often results in higher insurance premiums.

PIP or MedPay coverage: Since Arizona is an “at-fault” state, Personal Injury Protection (PIP) coverage is not required. However, insurance companies offer Medical Payments (MedPay) insurance for those seeking additional coverage for out-of-pocket medical expenses.

Rideshare insurance requirements: ARS 28-4038 mandates specific insurance requirements for drivers participating in ride-sharing services, such as Uber or Lyft. These requirements vary depending on the stage of the ride-sharing process:

• While logged into the app (no passengers):
  • $25,000 for bodily injury or death of one person
  • $50,000 for bodily injury or death of two or more persons per accident
  • $20,000 for property damage per accident
• While providing transportation services (passenger in vehicle):
  • Minimum primary commercial motor vehicle liability insurance of $250,000 per incident
  • If a passenger occupies the vehicle, the minimum coverage increases to $1,000,000 per incident
• Coverage can be provided through:
  • A private passenger motor vehicle policy that explicitly includes coverage for app-based activities
  • A motor vehicle liability policy maintained by the Transportation Network Company (TNC)
  • A commercial motor vehicle liability policy

The driver and the TNC ensure these insurance requirements are met to protect all parties involved during ride-sharing activities.

Fault & Negligence Laws

In Arizona, the responsibility for covering accident-related damages rests with the driver found to be at fault. This "at-fault" system places financial accountability on the party whose actions led to the crash. If necessary, compensation can be pursued through the at-fault driver’s insurance or legal action.

Pure comparative fault

Arizona applies a pure comparative fault rule, which allows accident victims to recover damages even if they share some responsibility for the accident. However, any compensation awarded is reduced by the percentage of fault assigned to the claimant. For example, if a person is awarded $50,000 in damages but is found to be 30% at fault, they will receive $35,000. This system ensures that even partially responsible parties can seek financial recovery while holding all involved accountable for their role in the incident.

Multi-vehicle collisions

Fault determination becomes more intricate in multi-vehicle collisions, as liability may be distributed among drivers. Investigators evaluate the sequence of events, vehicle damage, and applicable traffic laws to assign fault percentages to each party. Arizona’s pure comparative fault system allows individuals to recover damages based on their degree of responsibility.

Passenger rights

If a passenger is injured in a car accident, they have the right to seek compensation from the at-fault driver’s insurance, whether it’s the driver of the vehicle they were in or another involved party. Passengers can also use uninsured/underinsured motorist (UM/UIM) coverage if the at-fault driver lacks sufficient insurance. 

However, if a passenger’s actions, such as distracting the driver, caused or contributed to the accident, they may be liable for damages. In such cases, their compensation could be reduced under Arizona’s pure comparative fault system, and they may face legal action from other injured parties.

Statute of Limitations

In Arizona, individuals injured in auto accidents generally have two years from the accident date to file a lawsuit for personal injuries or property damage. This includes claims for medical expenses, lost wages, and other damages from the collision. If the accident results in a wrongful death, the two-year period begins on the date of the victim’s death. Filing after the statute of limitations has expired usually results in the case being dismissed, making it essential to act promptly. 

Furthermore, claims involving government vehicles or employees have a shorter notice period, typically requiring a formal claim to be filed within 180 days.

Procedures for Handling MVAs

When to report an accident

• Accidents involving bodily injury or death: Drivers are legally required to report any accident that results in bodily injury or loss of life
• Property damage: If the total property damage caused by the accident is estimated to be over $2,000, the incident must be reported
• When a citation is issued: If a law enforcement officer issues a traffic violation notice at the accident scene, the crash must be reported
• Severe or fatal accidents: Accidents involving severe physical injuries or fatalities require immediate reporting to law enforcement authorities to ensure proper documentation and investigation

Filing a report

If an accident fits the criteria above, the responding law enforcement officer prepares an Arizona Crash Report. The officer gathers detailed information at the scene or later by interviewing participants and witnesses. This written report is completed within 24 hours of concluding the investigation and serves as a critical document for insurance claims and legal proceedings.

Alternatively, the Arizona Department of Public Safety provides a Citizen’s Report of a Collision tool for minor vehicle accidents that do not meet emergency criteria. Drivers can submit their reports online to obtain a police report number, which insurance companies often require. The following conditions must be met for online reporting:

• The collision occurred on a state highway within the jurisdiction of the Arizona Department of Public Safety
• No injuries were sustained during the collision
• Total property damage is less than $2,000
• The collision involves no more than two vehicles

Reports must include detailed information, as there will be no further investigation to determine fault or gather insurance details. Drivers can alternatively request on-scene assistance from a state trooper by calling the Department of Public Safety’s non-emergency number at (602) 223-2000.

How to access accident reports

• Online: Use the Public Services Portal, the only online payment option
• In-person: Visit the Arizona Department of Public Safety (DPS) at 2222 West Encanto Blvd., Phoenix, AZ 85009
• By mail: Send your request to Public Records Unit, Arizona DPS, PO Box 6638, Phoenix, AZ 85005-6638
• By fax: Submit requests to (602) 223-2945

Important: The DPS only maintains records for incidents investigated by state troopers. For accidents handled by county sheriffs, city police departments, or town marshals, you must contact the investigative agency in that jurisdiction directly.

Types of Compensation Available & Limits

Arizona recognizes three types of damages in car accident claims:

• Special damages (economic): These include measurable financial losses, such as medical expenses, lost wages, and property damage
• General damages (non-economic): These compensate for intangible losses like pain and suffering, emotional distress, and loss of enjoyment of life
• Punitive damages: Awarded in cases of gross negligence or intentional misconduct to punish the at-fault party and deter similar behavior

Under Article 18, Section 31 of the Arizona Constitution, damage caps are prohibited, ensuring no limits on recoverable damages for injuries or death.

However, the U.S. Supreme Court has ruled that punitive damages exceeding 9 times compensatory damages are generally unconstitutional. 

Additionally, in Arizona, under ARS 12-820.04, public entities and employees acting within the scope of their duties are immune from punitive damages.

Medical Payments & Health Coverage

When you’re involved in a car accident in Arizona, covering medical bills depends on your insurance type and coverage. Here’s how it works:

• Health insurance: If you have private health insurance, it can cover your medical bills while you wait for the at-fault driver’s insurance to settle. Remember that your health insurance provider may seek reimbursement through a lien on your settlement
• Out-of-pocket expenses: You may need to pay your medical bills upfront after an accident. These out-of-pocket expenses must often be covered immediately, even while waiting for settlements or insurance claims to process
• At-fault driver’s insurance: You can file a claim with the at-fault driver’s liability insurance to cover your medical bills. This process may take time and typically requires evidence of the other driver’s fault
• UM/UIM coverage: If the at-fault driver lacks sufficient insurance, UM/UIM coverage under your auto insurance policy can help cover medical expenses and related costs
• MedPay: MedPay is an optional coverage in Arizona that pays for medical expenses regardless of fault. It can help cover any immediate medical costs while awaiting settlements
• AHCCCS: Arizona Health Care Cost Containment System (AHCCCS) is Arizona’s publicly funded health insurance through Medicaid for those who qualify. It covers necessary medical treatments for accident injuries but places a lien on your case. Once you receive compensation, you are required to reimburse them
• Medical liens: Both private health insurance providers and public programs like AHCCCS can place a medical lien on your personal injury claim. This ensures they are reimbursed for covering your medical costs once you receive a settlement

Unique Local Considerations

Arizona's unique climate and geography can significantly impact road safety, contributing to accidents if drivers are unprepared:

• Dust storms (Haboobs): Sudden dust storms can reduce visibility to near zero, often causing multi-vehicle accidents. Drivers should pull over safely, turn off their lights, and wait for the storm to pass
• Flash flooding: Monsoon rains can create floods that wash vehicles off roads, leading to severe accidents. Drivers should avoid crossing flooded roads, as even shallow water can be dangerous
• Extreme heat: High temperatures increase the risk of tire blowouts and engine overheating. A traffic breakdown can cause rear-end collisions or other accidents, especially on busy highways
• Snow in Northern Arizona: Snow and ice in areas like Flagstaff reduce traction and control, leading to skidding and crashes. Drivers should slow down and ensure their vehicles are equipped for winter conditions

Local Resources & Contacts

Arizona Department of Transportation (AZDOT): https://azdot.gov/mvd

Arizona Department of Public Safety (AZDPS): https://www.azdps.gov/

Arizona Department of Insurance & Financial Institution (DIFI): https://difi.az.gov/

Arizona Traffic Incident Management (TIM): https://tim.az.gov/