10:05 AM

Understanding Arizona's New Auto Liability Coverage Law

State Farm® is Here to Help

New Arizona law requires an increase in the minimum limits of motor vehicle liability insurance coverage for any private passenger autos, commercial business or recreational vehicles. The law, Senate Bill 1087 (2019), goes into effect on July 1, 2020.

Will this impact my insurance policy?

The new law increases the minimum limits for coverages related to the liability portion of your auto insurance policy. This includes uninsured and underinsured motor vehicle coverages. The new minimum liability limits will increase to 25/50/15* beginning July 1, 2020. All existing policies with lower limits will renew at the new minimum limits on or after July 1, 2020 as mandated by this new state law. If your coverages are increased to comply with the new minimum requirements, there could be an impact on your premium.

*What do the three numbers mean?

The numbers 25/50/15 represent the monetary limits of your liability coverage shown on your declarations page:

  • The first number, 25 or $25,000, is the maximum coverage for bodily injury liability for one person injured in one accident.
  • The second number, 50 or $50,000 is the maximum coverage for bodily injury liability for all persons injured in one accident.
  • The third number, 15 or $15,000 is the maximum coverage for property damage liability in one accident.

Why is this happening now?

Implementing changes required by a new law can take several months. While the law is going into effect now, the process to implement these changes was set in motion in 2019 after the law was passed.

What is the reason for this change?

The current limits have not been adjusted for more than 40 years. The change provides more protection for Arizona drivers since services associated with these coverages, like medical and repair costs, have risen significantly in that time.

How will this work? Do I need to do anything?

No action is required. All existing policies with lower limits will renew at the new minimum limits on or after July 1, 2020, as mandated . However, it may be a good time to reach out to your State Farm agent to review all of your coverages and review potential discounts.

When will this happen?

The new law goes into effect July 1, 2020. Customers who are impacted will see the change in their next policy renewal after that time.

How does this impact the credit we’re receiving from the Good Neighbor Relief Program?

You will still receive your credit as part of the Good Neighbor Relief Program. If your policy was renewed with the new minimum liability limits, your premium may be adjusted to reflect that as well. Both should be clearly marked on your State Farm declarations page as part of your policy renewal.


About State Farm®:

For over 100 years, the mission of State Farm has been to help people manage the risks of everyday life, recover from the unexpected and realize their dreams. State Farm and its affiliates are the largest providers of auto and home insurance in the United States. Its more than 19,400 agents and 67,000 employees serve over 91 million policies and accounts – including auto, fire, lifehealth, commercial policies and financial services accounts. Commercial auto insurance, along with coverage for rentersbusiness ownersboats and motorcycles, is also available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 44 on the 2023 Fortune 500 list of largest companies. For more information, please visit

Media Contact