Arizona Car Insurance: The State Where You Can “De-Insure” Your Vehicle

For Arizona car insurance everything has to be filed with the state, including the fact that you don’t need insurance.

Arizona car insurance doesn’t allow any uninsured drivers to drop through the cracks.

Arizona car insurance minimum requirements may not be very high, but their enforcement of it is very strict. They have closely the same laws and procedures as their neighboring state of California. They track and punish in the same way as California, but they have one opt-out requirement (de-insurance) that is unique to Arizona.

What You Have to Have for Arizona Car Insurance

The Arizona car insurance requirements are about average for what is seen throughout the country. You are required to have no less than $15,000 in liability coverage for one person’s injuries due to an accident that you cause. The minimum liability coverage for the total medical costs for all injuries with Arizona car insurance stands at $30,000.

Lastly, $10,000 in liability coverage for property damage is required for Arizona car insurance.

What in the World is “De-Insurance”?

“De-insurance” or to “de-insure” is taking insurance off of your vehicle for a temporary period of time; due to your vehicle not being driven for a specific reason. Vehicles that you may “de-insure” are vehicles that no longer run and vehicles you are restoring. If you are restoring or fixing your vehicle, Arizona recommends that you kept receipts of the parts and work to verify the work done as they may actually require you to provide this proof.

If you have a vehicle that you need to “de-insure” in the state, you must file a “De-Insured Certificate” for Arizona car insurance. Failure to file this certificate with the state after you have dropped your Arizona car insurance will result in suspensions of your registration, suspension of your driver’s license and fines.

The Arizona Car Insurance Database

Just like in California, Arizona car insurance is tracked via a database that all insurance companies must submit information to. This information includes notifications about cancellations, new policies and renewals of all Arizona car insurance policies.

If the state receives notification from your insurance company that your policy was dropped for any reason and they do not receive information of a new policy, your vehicle registration will be suspended.

Out-of State Issues with Arizona Car Insurance

If you are an Arizona resident and you move out of the state, but your vehicle remains registered in Arizona, you have to keep Arizona car insurance on your vehicle. You can only drop your Arizona car insurance when you switch your registration to your new state.

If your license was suspended in Arizona for not carrying valid Arizona car insurance, this suspension does carry over to your new state as well. You have to clear up the suspension in Arizona before you can get a driver’s license in the new state you have moved to.

If you are only out of the state for a short period of time, including if you are in the military, you can submit for a “De-Insured Certificate” for the temporary time you are out of state.