Car Insurance Coverage Lapses

Consequences of Driving Without Insurance in Arizona 

Most states require drivers to carry a minimum amount of car insurance coverage. Arizona is no different. Not carrying the minimum required insurance in Arizona can result in: 

• Fines and penalties 
• Higher insurance premiums 
• License and registration suspension 
• An SR-22 form requirement 

Read on to learn more about these and how drivers in Arizona can prevent driving without insurance, also known as lapses in coverage. 

If you are currently an uninsured Arizona driver and would like to discuss coverage options, reach out to a local Access Auto Insurance Agency of Arizona, LLC (Access Auto) location. 

Arizona’s auto insurance laws 

After almost 50 years without a change, Arizona updated its auto insurance requirements in 2020. In Arizona, liability insurance is required. The basic coverage needed in this state is known as the 25/50/15 liability coverage. This means that under AZ law, you’re required to carry: 

• $25,000 coverage for bodily injuries or death to one person  
• $50,000 total coverage for bodily injuries or death to two or more people 
• $15,000 coverage for property damage per accident 

If you choose to drive without a car insurance policy, you can also show proof of future financial responsibility, according to the Department of Transportation. For this, you need to purchase a $40,000 bond from the Arizona State Treasurer. 

Penalties for driving without insurance in Arizona 

If your auto insurance is cancelled or expires, your insurance company is required to update the DMV. Additionally, a law officer may ask for proof of insurance during a traffic stop or accident. If you don’t have a policy on record, the DMV will send you an inquiry notice to verify your insurance. 

Failure to provide proof of insurance may result in the following penalties: 

• First offense: A $500 fine, suspension or restriction of your driving privileges for three months. An SR-22 form may also be required. 
• Second offense (within three years): A $750 fine, suspension of your license, registration, and license plate for six months. An SR-22 form may also be required. 
• Third or more offenses (within three years): A $1000 fine, suspension of your license, registration, and license plate for one year. An SR-22 form may also be required. 

SR-22 

To reinstate your driving privileges after such violations, the Department of Transportation requires you to show proof of financial responsibility. An authorized insurance company must file the SR-22 form for you through the DMV. 

The cited driver is required to hold an SR-22 certificate for three years. Failing to do so will result in the Department of State revoking your license. 

Higher insurance premiums 

In addition to the fines and restrictions above, driving without insurance can result in future higher premiums. Insurance companies tend to see uninsured drivers or those required to file an SR-22 form as greater risks.  

Thus, you may have to pay higher premiums if found guilty of the violations above. 

Why do car insurance lapses happen? 

Here are the reasons Arizona drivers may lack insurance coverage: 

• Failure to pay their insurance premiums. The state of Arizona offers a grace period of about seven to 30 days, but it’s recommended that any lapse in coverage be avoided. 
• Change in their personal details without updating their insurance provider. 
• Operating a new vehicle without insurance. The Department of Transportation grants drivers 30 days after registering their vehicle to obtain auto insurance. 
• Changing insurance providers and leaving a gap in their coverage. If you change providers, your new policy should start at least a day before your old one expires to avoid coverage lapses. 

How to avoid gaps in coverage 

After you shop around and find a policy that meets state requirements and fits your needs, carry your proof of insurance. This way, if you encounter a traffic stop or an accident, you will have the required documentation. 

If your auto insurance policy is active, you can set deadline reminders to reduce the chances of missing any payments. Ask your provider when your insurance policy renewal is due, so that you are ready to renew it or change it before the expiration date. 

If you received a driving violation for driving without insurance, but believe you carried insurance at the time of citation, you may show the court proof that you were insured at the time and date of the citation. This may help you reduce fines. 

Working with Access Auto to avoid coverage gaps 

If your insurance expired or lapsed in any way, contact your preferred auto insurance company. Not all insurance companies offer policies for drivers with insurance gaps. Access Auto is one agency ready to help drivers in such situations. 

Access Auto works with several insurance companies to help customers find a policy that fits their needs, even if they’ve had a coverage gap.  

Some carriers offer discounts, which may help reduce the cost of premiums. Additionally, our team of Spanish-bilingual agents is ready to assist customers from different backgrounds. 

To ask about options for drivers with coverage gaps, call 602-922-3595, get a quote online, or visit one of our Arizona locations to get a free auto insurance 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.