What happens when you’re caught driving without insurance in Arizona?

Auto insurance can be overly complicated and expensive. Oftentimes, drivers may not know how to get insurance or how to afford it. This can lead people to be without auto insurance. A study in 2017 showed that 13% of motorists in the USA were uninsured, that’s about one in eight drivers, according to the Insurance Research Council. The same study showed that in 2015, there were 15.4% uninsured motorists in Arizona. Yet, driving with insurance is required by law in all states except in New Hampshire to drive a car legally.

Driving in Arizona

In Arizona, it is illegal to drive without insurance. It is required to show proof of insurance before registering a vehicle. All drivers must have at least the state minimum amount of liability insurance, “also known as financial responsibility limits. As of July 1, 2020, in Arizona the minimum liability coverage is 25/50/15, which means:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $15,000 for property damage per accident

Liability insurance coverage means that your insurance provider will pay for the other driver/vehicle in case you cause an accident. It does not cover the damages to yourself or your car.

Penalties in Arizona for driving without insurance

If you’re caught driving without insurance, you will face a range of penalties including but not limited to a fine and the loss of your driving privileges. In Arizona, the Department of Transportation requires all drivers to carry financial responsibility, meaning to pay for some sort of liability coverage. If you are pulled over, and fail to provide valid proof of Insurance, you could face the following penalties:

• 1st Offense: Fine of $500 and suspended driver’s license, registration, and license plates for up to 3 months
• 2nd Offense: Fine of up to $750 and suspended driver’s license, registration, and license plates for up to 6 months
• 3rd Offense: Fine of $1,000 and suspended driver’s license, registration, and license plates for up to a year.

With each offense, you must file an SR-22 certificate for three years.

In addition to heavy fines, license suspension, plate confiscation, and/or your vehicle impounded, you will also have to pay fees to reinstate your license, vehicle registration, plates, and possibly deal with court dates. It’s also likely that future insurance premiums will spike as a consequence.

What is an SR-22 certificate?

When you’re found responsible for driving without insurance, you will be required to file an SR-22 certificate from an insurance company. The SR-22 certificate is not insurance coverage, but a certificate that will certify to the state that you will be insured in the future. In Arizona, if you need to obtain an SR-22, you will have to keep the certificate on file for up to 3-years, meaning you will be required to pay insurance at the much higher rate to keep the SR-22 on file with the state. When you have an SR-22 certificate, auto insurance will be more expensive because your provider will assume you are a high-risk driver.

What happens if I’m involved in an accident without insurance?

The state of Arizona has severe penalties if you’re involved in an accident and don’t have insurance.

If you’re driving without insurance and involved in an accident, you might end up paying thousands of dollars out of pocket in damages and medical bills.

If you’re driving uninsured, the other driver’s insurance company will sue you for the damages caused to the other driver’s car.

If the other driver is at fault and damages your car, you will have to pay for your own repairs out of pocket since you do not have insurance coverage (Reminder, in this scenario, liability coverage would not cover you for repairs either as it only covers the bills for the other driver when you’re at fault).

Driving without insurance while being involved in a car accident will result in a ticket, suspension of your driving privileges, car registration, heavy fines, and can even go to jail depending on the state you live in.

Being involved in a car accident is stressful and can be complicated. However, knowing that you have auto insurance assures you that you will not be on the hook for paying massive bills.

Is insurance mandatory in every state?

For the most part yes; 48 states legally require drivers to carry auto insurance, but all 50 states require drivers to show proof of financial responsibility. In other words, all drivers in the US need to pay for some sort of liability coverage.

Depending on the state you are in, laws will vary. In some states, uninsured drivers will get their license suspended while other states don’t suspend licenses — here is a list of where each state falls. If you happen to live in a state where they don’t suspend licenses for uninsured drivers, you will most likely have to pay hefty fees.

Simply put, driving without insurance should never be an option as it’s illegal in almost all states. If you’re caught driving without insurance it will lead to expensive fines, suspended license, suspended registration and it can get worse if it’s not your first offense. At the end of the day, it is much cheaper and safer to pay for auto insurance than the backlash of fees that come with not having insurance.