Teen Driver Insurance in Arizona: Parent & Teen Guide
Arizona requires 25/50/15 liability coverage and is an at-fault state.
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Arizona at a Glance
25/50/15
Minimum liability limits, in thousands of dollars (per person / per accident / property)
At-fault
The at-fault driver's insurance pays for the damage they cause
Optional
PIP and uninsured motorist coverage are not required by law
15½
Minimum learner's permit age, 30 supervised driving hours
Source: state DMV, insurance department and statute records, verified July 2026
Minimum Coverage Requirements in Arizona
Teen drivers progress through a graduated licensing system: learner's permit at 15 years 6 months with supervised driving only, intermediate license at 16 with passenger and nighttime restrictions, and full unrestricted license at 18. Arizona statute A.R.S. § 20-1631 mandates that all insurers offer a good student discount to drivers under 25 who maintain a B average or better, making it one of the few states where this discount is a legal requirement rather than carrier discretion.
Liability Insurance
Uninsured Motorist Coverage
Collision Coverage
Comprehensive Coverage
Full Coverage
What Drivers Pay in Arizona
$238–$637/mo
Typical monthly rate in Arizona, adding a driver aged 16–19 to a parent's policy
Rate data: Insurify and ValuePenguin, 2025
What Affects Your Rate
- Telematics programs: Carriers in Arizona offer usage-based insurance programs that monitor braking, speed, and mileage.
- Arizona does not require driver's ed for licensing, but insurers recognize it for discount purposes.
- Vehicle type: Insuring a teen on an older, lower-value vehicle with liability-only coverage costs significantly less than adding them to a newer financed vehicle requiring full coverage.
- Separate policies typically make sense only if the parent has a poor driving record or the teen owns a vehicle titled in their own name.
- Graduated licensing stage: Some insurers offer lower rates for learner's permit holders who are supervised and prohibited from independent driving compared to intermediate license holders who drive alone under restrictions.
Cover Your New Driver for Less
Compare Teen Driver Insurance RatesRules for new drivers
Night driving
midnight-5am (secondary)
Passengers
no more than 1 passenger younger than 18 for first 6 months (secondary)
Source: IIHS and AZ MVD, verified July 2026
Coverage Types
Liability-Only for Older Vehicles
State-required 25/50/15 minimum plus optional uninsured motorist coverage, with no collision or comprehensive. Lowest premium option for teens driving paid-off vehicles worth under $4,000.
Full Coverage for Financed Vehicles
State minimums plus collision and comprehensive with a deductible, required by lenders on financed or leased vehicles. Protects both the lender's interest and the family's investment in the vehicle.
Enhanced Liability Limits
Liability coverage above the state minimum — typically 100/300/100 or 250/500/100 — to protect family assets if a teen driver causes a serious collision. Medical costs from a multi-vehicle crash can exceed $50,000 quickly.
Telematics-Enrolled Policy
Full coverage or liability-only policy with a usage-based insurance device or app that monitors driving behavior. Safe habits — smooth braking, obeying speed limits, limited night driving — earn ongoing discounts.
Good Student Discount Policy
Any coverage level with the state-mandated good student discount applied. Requires proof of B average or higher — report card, transcript, or school certification letter submitted to the insurer.
Distant Student Discount
Discount for college students attending school more than 100 miles from home without regular access to the insured vehicle. The student remains on the parent's policy but at a reduced rate due to limited exposure.