Reading Time:  3  minutes

Auto accidents are extremely common. According to the Association for Safe International Road Travel, there are 20 to 50 million injuries caused by auto accidents each year. If the state didn’t require insurance, these millions of accidents would not only cause physical damage but billions of dollars in financial harm. Insurance is a great way to help ease the financial havoc caused by auto accidents. It’s designed to try and make those involved in these mishaps “whole.”  

Arizona legally requires drivers to have auto insurance. Part of the law requires a minimum amount of bodily injury coverage: $15,000 per person and $30,000 per accident. This rule is commonly known as “15/30” coverage. The reason for this is to help protect our community. 

Health care costs are increasing at alarming rates. As a result, coverage of $15,000 per person and $30,000 per incident typically isn’t even close to what is needed. A trip to the emergency room alone can easily exceed $20,000–not counting the cost of an ambulance. This means the state minimum requirement for insurance is much less than it should be. Many people driving are significantly underinsured and don’t have the financial capacity to cover the damages caused by an at-fault accident. 

The big change coming to Arizona auto insurance is this: the state is increasing its minimum coverage from 15/30 to 25/50. Doug Ducey signed a bill that will require Arizona drivers to carry at least $25,000 of liability insurance for a single person’s injury or death and $50,000 for multiple. This will go into effect July 1, 2020.

As a finance expert and owner of an Insurance Agency, I’m in favor of this change. It must happen to keep pace with rising health care and auto repair costs. However, this minimum requirement still falls short. I often see auto insurance claims exceeding $25,000 per person and $50,000 per incident. As a result, the state minimum should be much higher. Although I applaud the Governor for making this increase, it may be too small. Some may say this will inflate monthly auto insurance premiums, but there is a simple way to mitigate this. The increase in limits will have a very small impact on the monthly cost to consumers – especially if they make small increases to their deductible.


  1. If you have “minimum coverage,” strongly evaluate if 25/50 is enough.
  2. Schedule an appointment with our wise insurance advisor Brandon Ream below. He will evaluate your situation and provide quotes from multiple insurance companies to ensure you have insurance at the right price.