The State of Arizona currently requires that all drivers be covered under minimum liability insurance. Proof of insurance must always be carried in the vehicle.
These are only the minimum requirements set by Arizona. Almost all drivers add collision and comprehensive coverage to their policies to cover possible damage to their own vehicles as well.
Arizona does not require this coverage. UM/UIM, or uninsured/underinsured motorist coverage. This coverage protects a driver if they get in an accident where the other party does not have auto insurance.
Some states have “No-Fault” laws where a policy holder will be reimbursed by their insurance company without proof of fault, and restricted in the right to seek reimbursement through the court system for losses caused by other parties. Arizona is not a “No-Fault” state.