The objective of this research was to determine the annual cost of risk to the Arizona Department of Transportation (ADOT) and to compare it with that of other state transportation agencies. ADOT is charged with the responsibility of designing, building, and maintaining the highway system for the state of Arizona. Insurance premiums are a notable portion of ADOT's expenses and have risen significantly over the last decade. The research work began with a determination of ADOT's annual cost of risk. Costs by type of coverage were evaluated and quantified so that the major drivers affecting total cost were easily identified. A survey was developed and distributed to the risk managers of each state, requesting their state's participation in the survey. A summary of ADOT's cost of risk was provided to encourage participation. Information received from the 17 responding DOTs was analyzed and used to make determinations. The report compares four major areas concerning ADOT's loss costs for that of the other state DOTs: the cost of claims, risk control methods, legal environment, and other program cost sources. It is noted that ADOT has a lower than average rate for workers' compensation claims, a higher than average rate for general liability claims, and an average rate for auto liability claims. The report will assist ADOT in comparing Arizona's cost of risk with other responding transportation agencies and in the evaluation of current Arizona practices.