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Karnas Law Firm

Auto Insurance Minimum Limits in Arizona Are Changing

In prior newsletters, we advised that the law regarding Minimum Limits auto insurance in Arizona was changing this July. KLAW has advocated for this change in minimum limits coverage since the first attempts to revise the law more than five years ago.

The new law is now effective, and as of  July 1, 2020, the minimum amount of liability coverage that insurance companies can provide when issuing or renewing an auto insurance policy is increasing to 25/50/15.  The prior law allowed minimum limits of :

  • $15,000 for one person sustaining bodily injury or death in an accident,
  • $30,000 for two or more persons sustaining bodily injury or death in an accident, and
  • $10,000 for damage to others’ property.

This is commonly referred to as 15/30/10.

The minimum limits for auto insurance policies have now increased to:

  • $25,000 for one person sustaining bodily injury or death in an accident,
  • $50,000 for two or more persons sustaining bodily injury or death in an accident, and
  • $15,000 for damage to others’ property,

So what does this actually mean for consumers?  The short answer is that ALL new auto insurance policies issued on or after July 1, 2020 must be issued at New limits of no less than 25/50/15.  You can always buy insurance with higher limits but the minimum is 25/50/15.

All currently existing auto insurance policies renewing on or after July 1, 2020 that have the 15/30/10 limits will automatically be adjusted to the new higher limits of 25/50/15.

If your current policy limits are 15/30/10, (below the new limits),  your renewal premiums will likely increase to correspond to the increase in coverage to 25/50/15.

If you have any questions about the new law, don’t hesitate to call or email us any time .

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