Car insurance in Arizona (25/50/15)
- Minimum car insuranceSince July 1, 2020, Arizona has required at least $25,000 bodily injury liability per person, $50,000 per accident and $15,000 property damage liability. PIP is not required. Insurers must offer uninsured and underinsured motorist coverage in writing, but buying it is optional. Source
- Fault systemArizona is an at-fault (tort) state: the driver who causes a crash is responsible for the resulting injuries and damage, usually through their liability insurance. Source
Business insurance rules in Arizona
- Workers’ compensationAll Arizona employers with one or more full- or part-time employees must carry workers' comp, and that includes LLCs and corporations whose officers are employees. Coverage comes from private insurers or self-insurance, not a state fund. Failing to carry it is a Class 6 felony. Source
- Contractor licensingThe Arizona Registrar of Contractors licenses contractors and requires a license bond, with the amount set by license classification and expected annual volume. Apart from workers' comp, the Registrar does not require contractors to carry liability insurance to be licensed. Source
Disasters, floods, hail, tornadoes and earthquakes in Arizona
| Measure | Arizona | Rank among the states | Detail |
|---|---|---|---|
| Federal major disaster declarations since 2000 | 21 | #35 (tied) of 51 | Most often for severe storm (12), flood (5), fire (3). Coconino County has been in 5 of them. |
| National Flood Insurance Program claims, 2005–2025 | 1,826 | #44 of 51 | $38.1 million paid; 45% of claims with a known flood zone were outside FEMA’s high-risk zones. |
| Homes in high-risk flood zones with a federal flood policy | 21% | #29 of 50 | 12,298 policies for 57,819 homes in the counties FEMA can measure; US: 40%. |
| Hail reports, 2016–2025 | 351 | #35 of 51 | 9 of them 2 inches or larger. Largest stone 2.75 inches, Navajo County, September 2018. |
| Tornadoes, 2016–2025 | 58 | #33 of 51 | 0 rated EF2 or stronger; 303 recorded since 1950. |
| Earthquakes of magnitude 4.0+, 2000–2025 | 7 | #16 of 51 | Largest: magnitude 5.3, 13 km SW of Franklin, Arizona, June 29, 2014. |
From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.
Look up the storm history of any county in Arizona.
The property risks that matter in Arizona
Arizona's monsoon season brings dust storms (haboobs), flash floods and microbursts; flood damage needs a separate flood policy.
For homes in the Arizona wildland-urban interface, insurers increasingly use parcel-level wildfire scores. Document your mitigation work, keep your dwelling limit at full rebuild cost, and review extended replacement cost options.
Summer monsoon storms in Arizona can cause sudden roof and wind damage plus flash flooding. Wind is generally covered; rising water requires flood insurance.
Hail is one of the most frequent property claims in Arizona. Read how your policy settles roof claims: some pay replacement cost, others pay actual cash value on roofs past a certain age, and cosmetic-damage exclusions are increasingly common. Impact-resistant (Class 4) shingles may earn a discount.
Extreme heat strains HVAC systems, pools and vehicles in Arizona. Mechanical breakdown is usually excluded from homeowners policies; equipment breakdown endorsements or home warranties are separate.
Annual review checklist for Arizona
- Compare your auto liability limits with the Arizona minimum of 25/50/15 and with your actual assets.
- Document defensible space and home hardening work with dated photos for your insurer.
- Inspect the roof before monsoon season and clear drainage around the home.
- Read the roof settlement clause and ask whether Class 4 impact-resistant shingles earn a credit.
- Ask about equipment breakdown coverage for HVAC and pool equipment.
- Condo owners: compare your HO-6 loss assessment limit with the HOA master deductible.
Arizona’s insurance regulator
Insurance in Arizona is regulated by the Arizona Department of Insurance and Financial Institutions, which handles consumer complaints and licenses insurers and agents.
Sam Alishahi holds an Arizona nonresident insurance producer license (NPN 21022298) and places Arizona policies directly.
Common questions
What is the minimum car insurance in Arizona?
Since July 1, 2020, Arizona has required at least $25,000 bodily injury liability per person, $50,000 per accident and $15,000 property damage liability. PIP is not required. Insurers must offer uninsured and underinsured motorist coverage in writing, but buying it is optional.
Is Arizona a no-fault state?
Arizona is an at-fault (tort) state: the driver who causes a crash is responsible for the resulting injuries and damage, usually through their liability insurance.
Do employers in Arizona need workers’ comp?
All Arizona employers with one or more full- or part-time employees must carry workers' comp, and that includes LLCs and corporations whose officers are employees. Coverage comes from private insurers or self-insurance, not a state fund. Failing to carry it is a Class 6 felony.
Why are insurers declining homes in parts of Arizona?
Wildfire risk models and rising rebuild costs have led some insurers to limit new business in high-risk areas.
Will my Arizona policy pay to replace a hail-damaged roof?
It depends on the roof settlement terms. Some policies pay replacement cost; others pay actual cash value on older roofs or exclude cosmetic damage.
More answers: Arizona homeowners insurance guide Arizona renters insurance and security deposit guide Arizona life insurance consumer guide Arizona flood risk and NFIP guide Phoenix home and auto insurance guide Tucson home and auto insurance guide Guía de seguro de inquilinos y depósito de garantía en Arizona Guía de seguro de vida para consumidores en Arizona Guía de riesgo de inundación y NFIP en Arizona Guía de seguro de hogar y auto en Phoenix
Sources
- Arizona: Minimum car insurance
- Arizona: Fault system
- Arizona: Workers’ compensation
- Arizona: Contractor licensing
- Arizona: insurance regulator
- NAIC: directory of state insurance departments
General information as of October 2026, not legal advice; confirm current rules with the agency.