Liability Insurance — Arizona
Liability insurance pays for injuries and property damage you cause to others in an accident — it never covers your own vehicle or medical bills.
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What Is Liability Insurance Insurance?
Liability insurance is the only coverage Arizona law requires you to carry. It pays when you cause an accident and someone else gets hurt or their property gets damaged. The coverage has two parts: bodily injury liability covers medical bills, lost wages, and legal costs for people you injure, while property damage liability pays to repair or replace vehicles and other property you damage. Your policy pays up to your selected limits, and anything beyond those limits comes out of your pocket.
Who Needs Liability Insurance Insurance?
Every driver in Arizona must carry liability insurance to register a vehicle and avoid license suspension. If you finance or lease your car, your lender requires you to carry liability limits higher than the state minimum — typically 100/300/100 — to protect their collateral. If you own assets like a home, retirement accounts, or significant savings, you need liability limits high enough to cover those assets in a lawsuit, because injury victims can pursue your personal wealth beyond your policy limits.
Start with Arizona's required 25/50/15 minimum, then calculate your total assets — home equity, savings, retirement accounts, and future earnings.
How Much Does Liability Insurance Insurance Cost?
- Your at-fault accident history in the past three years — one accident can increase liability premiums by 30–50 percent.
- Your ZIP code's claim frequency and average settlement costs — Phoenix metro rates run 15–25 percent higher than rural Arizona due to congestion and higher repair costs.
- Your credit-based insurance score in Arizona — poor credit can double your liability premium compared to excellent credit.
- Whether you bundle liability with comprehensive and collision coverage — standalone liability policies cost 10–20 percent more per dollar of coverage than bundled full-coverage policies.
