Updated June 2026
What Is Liability Insurance Insurance?
Liability insurance covers property damage and bodily injuries you cause to other people when you're at fault in an accident. It consists of three components: bodily injury per person, bodily injury per accident, and property damage. Arizona's minimum requirement is $25,000 per person for injuries, $50,000 per accident for all injuries combined, and $15,000 for property damage, commonly written as 25/50/15.
- You hit a car at a red light, causing $9,000 in vehicle damage and $18,000 in medical bills for the driver. Your liability insurance covers both: $9,000 under property damage and $18,000 under bodily injury per person. Your car's damage is not covered. You would need collision coverage for that.
- You drift into oncoming traffic and hit two cars. Driver A has $30,000 in injuries, Driver B has $22,000, and combined property damage is $14,000. Your 25/50/15 policy pays the full $14,000 in property damage, but only $25,000 for Driver A and $22,000 for Driver B. Driver A's remaining $5,000 becomes your personal liability since the per-person limit is $25,000.
- You swerve to avoid an animal and hit a tree. Your car has $8,000 in damage and you have $4,000 in medical bills. Liability pays nothing. There is no other party to make a claim. This is why suspended drivers planning to drive on a hardship license should consider collision and medical payments coverage, not just liability minimums.
Who Needs Liability Insurance Insurance?
Anyone reinstating a suspended license in Arizona must carry liability insurance continuously for the duration of the reinstatement period, even if not actively driving. Drivers planning to use a hardship or restricted license need an active policy before the MVD will issue driving privileges. Suspended drivers without a vehicle need a non-owner liability policy to satisfy reinstatement requirements.
If reinstatement requires SR-22 filing, you need liability insurance immediately and must maintain it without lapses for 3 years. If your suspension does not require SR-22 but you want driving privileges back, you need proof of insurance before the MVD will process reinstatement. If you don't own a car, get a non-owner policy. If you plan to drive regularly after reinstatement, consider limits higher than 25/50/15 to avoid personal liability exposure in multi-vehicle accidents.
How Much Does Liability Insurance Insurance Cost?
Liability-only policies for drivers with suspended licenses typically cost $85–$165/month ($1,020–$1,980/year) in Arizona, depending on suspension reason and driving history.
- Suspension cause: DUI suspensions increase liability rates 80–120% compared to administrative suspensions for unpaid tickets.
- SR-22 filing requirement: adding the SR-22 certificate costs $15–$25 to file, but signals high risk to carriers and raises the base premium another 20–40%.
- Coverage limits above state minimums: increasing from 25/50/15 to 50/100/25 adds $12–$30/month but protects you from personal liability in serious accidents.
- Prior insurance lapses: a gap longer than 30 days before suspension adds 15–35% to the quoted rate even after reinstatement.
- Zip code and commute distance: urban Arizona drivers in Phoenix and Tucson pay 10–18% more than rural counties due to accident frequency.
- Vehicle type for owned-vehicle policies: liability costs scale with vehicle value for comprehensive risk assessment, even though liability itself doesn't cover your car.