Smart Auto Insurance Blog

As of October 1, there was a new Arizona auto insurance law implemented according to an article by Adam Rolnick found on usprwire.com about Oasis Insurance.  The bill was passed the previous legislative session and it’s known as HB2224. 

October 1 and going forward judges are required to assign penalties for Arizona drivers who don’t carry auto insurance coverage.  About 87% of tickets that were issued because drivers were not carrying insurance were dismissed or the fines were lowered.  The new law says there will be no dismissal of these charges. 

The first offense will carry an approximately $720 penalty which cannot be waived.  About $970 will be the fine for second time offenders.    If you are caught a third time driving without auto insurance the fine will be up to $1200 and your license will be suspended for a year.  Not only will your license be suspended but you will be required to carry SR22 insurance documentation once you get your license back. 

Before this law was passed, Arizona residents who were caught driving without insurance would often purchase the insurance before the court date and show their proof upon the judge’s request.  The new law says this will not be possible going forward and the fines still must be paid.

It is against the law to drive without auto insurance in Arizona and most of the country.  You also must carry proof of insurance.  According to the article “Proof of auto insurance requirements changing in Arizona” by Delane Cleveland on fox11az.com, the law is getting stricter when it comes to carrying proof of Arizona auto insurance. 

Tony Riojas, the presiding magistrate for Tucson City Court says no proof of insurance is one of the most common citations that come through court.  Currently, if someone has to go to court to prove insurance, charges are often dropped or reduced but starting October 1 that will change.  Before you can get any reduction in fine not only must you show proof of insurance but you will also need to prove that you have not gotten an insurance violation within the past two years, or only one citation in the past three years. 

Repeat offenders can face fines up to $1,000.  Governor Jan Brewer signed the bill back in July to approve these provisions and insurance companies across Arizona approved.  They believe this bill will reduce the number of uninsured drivers on the road.

Over the past 6 months Arizona auto insurance rates have decreased by 1.9% on average, claims an AutoQuoter press release. Greater competition for business in the Phoenix area is credited for the decrease in premiums. It’s possible that the speed enforcement cameras recently installed on state highways have also played a role. Consumers appear to be looking for basic auto insurance with no frills.

Insurance premiums in Arizona are among the top-third most expensive in the nation.

Arizona’s private passenger car insurance rates have traditionally been among the most expensive in the country, however in 2008 they actually declined by nearly 2% wheras the country experienced an average car insurance rate increase of about 8%.   In addition, auto insurance rates in Arizona on average fell by 3% in the 4Q of 2008 (compared to 3Q).

Speculation as to what is driving the rate reductions ranges from 1) fewer drivers on the road in Arizona vs. past years 2) a highly competitive car insurance marketplace in Arizona, and 3) an increase in speed enforcement activities which have kept traffic accidents down.

Thus far in 2009, 17 auto insurance companies have already filed to change their Arizona car insurance rates.  The magnitude of the changes range from a decrease of .05% to an increase of 10%.