Many Arizona auto policies contain a clause that surprises families after a crash: the household or intra-family exclusion. If you injure a member of your own household while driving, the policy may pay that person only up to the state minimum of 25/50/15, even if you bought 100/300 or 250/500 limits.
DIFI lists this as the first "consumer awareness point" on its auto insurance page and in its annual premium comparison report. This guide explains how the clause reads, who it affects and what to ask your insurer.
What the exclusion says
DIFI quotes typical policy wording:
We do not provide Liability Coverage for any "insured" for "bodily injury" to you or any "family member" to the extent that the limits of liability for this coverage exceed the limits of liability required by the Arizona Financial Responsibility Law.
In plain terms: liability coverage for injuries to you or a family member is capped at the amounts Arizona requires (25/50 for bodily injury). DIFI confirms that Arizona law permits insurers to impose this limit "despite the total amount of liability coverage you may have otherwise purchased."
Who it affects
- Spouses and partners riding as passengers when the other is at fault.
- Children and teen drivers: a teen who crashes with a parent or sibling in the car.
- Relatives who live with you, such as a parent or adult child, depending on how the policy defines "family member."
- Single-car crashes, where the only possible liability claim is against the family driver.
Liability coverage exists to pay people you injure. When the injured person lives in your house, this exclusion is where large policies can shrink to the state minimum.
Other coverage that may help
| Coverage | Can it help an injured family member? | Notes |
|---|---|---|
| Liability (bodily injury) | Yes, up to 25/50 if the exclusion applies | Check the 'Exclusions' section of your liability coverage |
| Medical payments | Often yes, up to its limit, regardless of fault | Pays medical and funeral expenses for you and your passengers |
| Uninsured / underinsured motorist | Depends on policy wording | Some policies define your own car as not an 'uninsured' vehicle; read the definitions |
| Health insurance | Yes, subject to deductibles and networks | May seek reimbursement from any auto recovery |
| Umbrella policy | Sometimes excludes household injuries too | Ask the umbrella insurer directly |
What to ask and check
- Ask your agent or insurer in writing: "Does this policy contain a household or family-member exclusion, and what limit applies to injuries to my family?" DIFI recommends exactly this question.
- Find the clause yourself. It usually sits in the liability section under Exclusions, and the definition of "family member" is in the Definitions section.
- Compare insurers. The exclusion is permitted, not required, so quotes from different insurers may treat household injuries differently.
- Price medical payments coverage at a meaningful limit, which pays regardless of fault for you and your passengers.
- If you carry an umbrella policy, ask whether it also excludes injuries to household members.
When it matters most
The exclusion matters most for households where family members ride together often: parents driving kids, couples commuting together, or a teen driving siblings to school. It matters less for a single adult who rarely carries passengers. It does not change what your policy pays to people outside your household. For the size of the limits themselves, see the Arizona minimums guide and our liability limit checker.
Questions readers ask
What is the household exclusion in Arizona car insurance?
A policy clause that limits liability coverage for injuries to you or members of your household to the Arizona minimum (25/50 bodily injury), even when you bought higher limits.
Is the household exclusion legal in Arizona?
Yes. DIFI states that Arizona law permits insurers to include it.
Does every Arizona policy have a household exclusion?
No. It is permitted, not required, so ask each insurer and read the liability exclusions.
Does the household exclusion affect people outside my family?
No. It applies to injuries to you and family members as defined in the policy; other injured people are covered up to your full limits.
What coverage helps if I injure a family member?
Medical payments coverage, health insurance and possibly UM/UIM, depending on wording. Check each with your insurer.
Sources and further reading
Sources checked October 26, 2026. Figures are the latest published by each source at that date.
- Arizona DIFI: 'Household' or 'intra-family' exclusions (consumer awareness points)
- A.R.S. § 28-4009: Arizona financial responsibility limits referenced by the exclusion
- Arizona DIFI: 2025 Premium Comparison and Complaint Ratios for Automobile Insurance (consumer awareness points)
General educational information, not advice for your situation. Policy wording, state law and the insurer's decision control actual coverage. Written and edited by K.R. Not reviewed by a licensed insurance agent; confirm details with a licensed professional or your insurer. Examples use hypothetical figures unless a source is named. Report a correction.
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