Arizona law bars insurers from raising your car insurance premium because of an accident you did not cause or significantly contribute to. That rule is in A.R.S. § 20-263(A), and DIFI repeats it on its consumer page. If an insurer does raise your premium after an accident, it must tell you why.
This guide covers that rule, your right to recover your deductible from the at-fault driver, how repair-shop choice works, and what an Arizona total-loss settlement must include.
The Arizona rule
The statute reads: "No insurer shall increase the motor vehicle insurance premium of an insured as a result of an accident not caused or significantly contributed to by the actions of the insured. Any insurer which increases the premium as a result of accident involvement shall notify the insured of the reason for such increase."
- The protection turns on fault. "Significantly contributed to" means a partial-fault finding can still lead to a surcharge.
- It applies to increases as a result of the accident. Premiums can still change at renewal for other reasons, such as overall rate changes, a new vehicle or a new driver.
- If the Director finds a violation after a hearing, the insurer must refund the increase and may face a civil penalty of up to $300 (A.R.S. § 20-263(B)).
If your premium rises anyway
- Read the renewal notice. An accident-based increase must come with a stated reason.
- Ask the insurer, in writing, which accident it relied on and how it assessed fault.
- Send documents that show you were not at fault: the police report, the other insurer's liability acceptance letter, photos and witness details.
- If the insurer will not correct it, file a complaint with DIFI's Consumer Protection Division at difi.az.gov/file-complaint or call (602) 364-3100.
Getting your deductible back
If another driver damaged your car and you used your own collision coverage, you paid your deductible. DIFI notes you can recover that deductible from the negligent driver's liability insurer. In practice your insurer often pursues the other insurer (subrogation) and returns your deductible if it recovers; ask for updates. You can also skip your own policy and claim directly against the at-fault driver's property damage liability, which avoids your deductible but may be slower.
Repair shops and total losses
| Topic | What DIFI says | What to do |
|---|---|---|
| Repair shop | Your insurer may not require you to travel unreasonably for an estimate or force you to use a specific shop | Pick a shop you trust; ask for written estimates |
| Price differences | If your shop charges significantly more than several other independent shops, you may pay the difference | Ask your insurer up front what it will pay |
| Total loss offer | The insurer may offer a comparable replacement vehicle or cash; a cash offer must include applicable taxes and transfer fees, at no cost to you other than your deductible | Check that sales tax and title fees are in the settlement |
| Personal items stolen from the car | Most auto policies do not cover them; a renters or homeowners policy usually does | Claim belongings under your home or renters policy |
What to do at the scene
DIFI's list of steps after a crash: call the police; write down names, addresses, phone numbers and license numbers of everyone involved and any witnesses; note plate numbers and states; do not admit fault or discuss the accident with anyone except police and your insurance representatives; notify your agent promptly and take notes of every call; and keep receipts for rental cars, hotels and other expenses. Our car insurance claim guide walks through the claim itself.
Questions readers ask
Can my insurance go up if the accident wasn't my fault in Arizona?
Not because of that accident. A.R.S. § 20-263(A) bars increases from accidents you did not cause or significantly contribute to. Rates can still change for other reasons.
How do I get my deductible back after a not-at-fault accident in Arizona?
DIFI says you can recover it from the negligent driver's liability insurer. Your insurer often does this through subrogation and refunds you.
Does my Arizona insurer pick the body shop?
No. It may not force you to use a specific shop, but if your shop charges much more than several others you may owe the difference.
Does an Arizona total loss settlement include sales tax?
Yes. DIFI says a cash settlement must include applicable taxes and transfer fees, at no cost to you other than the deductible.
Sources and further reading
Sources checked October 26, 2026. Figures are the latest published by each source at that date.
- A.R.S. § 20-263: Vehicle insurance; prohibited premium increase
- Arizona DIFI: Premium increases, claims, repair shops and total loss settlements
- Arizona DIFI: File a consumer complaint
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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