As most of the states, Arizona requires all drivers to own liability insurance policy and also carry proof of this with them at all times.

The Motor Vehicle Division (MVD) keeps a close communication with authorized insurance companies in the state of Arizona, obtaining top first information on insurance cancellations, if you allow insurance lapses, new policies, renewals and non-renewals, etc. Making the MVD very well informed and concerned in this matter.

When required by the MVD, you'll need to demonstrate the owning of proper insurance liability coverage, the failure to comply with this mandate can result in the suspension of either your drivers license and/or your vehicle registration.

All motor vehicles intended to be used on public roads are required to be covered by any of the obligatory ways of financial responsibility. Arizona Motor Vehicle Division recognizes motorcycles, mopeds and golf carts as part of the vehicles that need to have insurance.
Financial responsibility minimum wages are:

• For property damage liability $10,000 (ten thousand) this pays for damage caused to other person's vehicles, property (like walls, fences, windows, etc.)
• For bodily injury liability per person $15,000 (fifteen thousand) and,
• $30,000 (thirty thousand) to cover medical expenses for two or more people involved in the accident.

De-Insured Certificate is a way which MVD allows a person to stop having insurance for a short term. You can apply for De-insured if you plan on working on your vehicle for a reasonable time period and it won't be taken out to a public road under no circumstance. Also this comes in handy for seasonal vehicles.

It is important that the insurance and vehicle information is submitted to the MVD as quickly and precise as possible. License Plates and registration can be suspended if this step is not completed, or if data is incorrect.

If you fail to maintain the required auto insurance, your vehicle's registration and/or your driver license can be suspended. If this happens, in order to reinstate them, you must file proof of financial responsibility and some fees may be applied. SR22 is the most common future proof of financial responsibility, and it is required by law to carry this proof for three years after the date when the vehicle registration and driver license was suspended.

In addition to the required liability insurance coverage, it is also recommended to add Collision and Comprehensive insurance, since liability will only pay for damages caused to others, your vehicle will be unprotected unless you add this coverage.  It is important to have your vehicle under this coverage if you are still paying for it. It will guarantee that if involved in an accident, you can repair it or get a new one to replace if the loss is massive (this may vary according to coverage and selected plan).

Uninsured and Underinsured motorist coverage is also available, useful when you are not responsible for the accident and the other driver who caused it either lacks of insurance or has too little coverage. It can also help when you suffer a hit and run accident.