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Arizona Increases Minimum Liability Limits for 2020

By: Megan Kossow 

Arizona to increase the minimum insurance liability limits effective July 1st, 2020

On May 27th, 2019 Senate Bill 1087 was passed by Arizona legislature. This bill states that the minimum liability limits in the state of Arizona will increase from the current minimum of $15,000/$30,000/$10,000 to $25,000/$50,000/$15,000. You may be thinking this is just another way for insurance companies to take more of your money, but here we will explain why this is actually a good thing!

Now, if the numbers above do not make sense to you, you are not alone.

Let us break down the meaning of these numbers. The 15/30 or 25/50 refers to the amount your insurance company will pay to the party that you caused bodily injury to. If you have the minimum limits, they would currently pay a maximum $15,000 for each individual's medical bills and a maximum $30,000 per occurrence for medical bills, regardless of how many people are in the accident. Once this new bill passes they will pay $25,000 per individual, $50,000 per occurrence. The last of the three numbers refers to the amount your insurance company will pay to the party that you caused property damage to. If you have the minimum limits this means they would pay a total of $10,000 to the party for their property damage. With the new increased limit that amount goes up to $15,000. 

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Now that you're all caught up on the terminology, what does this new bill mean for you?

Well, to make it short, your liability limits will increase. This could mean a slight increase in your insurance bill each month. We know, that sounds terrible, how could this bill possibly be good? By passing this bill this means that you will now have more coverage. In the event of an accident the last thing you want is to be UNDERinsured. Let's say you have the state minimum liability limits and you get into an accident (knock on wood) and the bodily injury you cause is $25,000, that's $10,000 than the $15,000 limit you have. Your insurance company will pay the person you hurt $15,000 and the rest is up to you. This means that if you are unable to pay that $10,000 out of pocket, you are likely looking at a lawsuit. 

Now, let's say that you get into an accident that does not result in any bodily injury (amazing!) but you hit a car and that damage is worth $15,000, that's $5,000 more than your current limit of $10,000. Well, like we said before, that extra $5,000 would be up to you to pay out of your own pocket. So, wouldn't you want higher limits to protect yourself from potential HUGE bills in the future?

When this bill takes effect you may see an increase in your insurance bill. This is the time that you will want to contact your insurance agent to discuss possibly re-writing your policy with a different insurance carrier. If you don't have an insurance agent, we can be yours! The awesome thing about RIGHTSURE is that we work with over 40 companies, so when this bill takes effect and you see an increase in your bill that you cannot afford, we can quote you with one of our many carriers and find you a much better rate! Keep us in mind when this bill takes effect on July 1st, 2020.

Give one of our knowledgeable agents a call if you have any questions regarding this new bill or your insurance policy in general.


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Headquartered in Tucson, Arizona, RIGHTSURE is an Insurance Technology firm leveraging cutting edge products with Artificial Intelligence and Insur-tech relationships to help families and businesses in 42 states. By using a unique, client-centered approach, combined with superior technology, RIGHTSURE presents clients with a wide range of Insurance options and a seamless purchasing process. To learn more, visit https://www.rightsure.com or call 520-917-5295.