5 Things You Need to Know About Uninsured and Underinsured Motorist Claims in Arizona

How UM/UIM Coverage Works and What to Expect After a Crash

When you’re involved in a motor vehicle crash, one of the first concerns is whether everyone is safe. The next concern is often how medical bills, lost wages, and vehicle repairs will be handled. These challenges are stressful under any circumstances—but the situation becomes even more difficult when the at-fault driver has no insurance or carries too little coverage to pay for your losses.

Unfortunately, uninsured and underinsured motorist accidents are not rare in Arizona. They affect thousands of residents every year, leaving injured drivers in a vulnerable position and unsure of where to turn.

This guide takes a closer look at how Arizona’s uninsured and underinsured motorist (UM/UIM) system works, why this coverage matters so much, and what practical steps you should take after a crash. Each section is designed to help Arizona residents gain a clearer understanding of their rights and options, without legal jargon or high-pressure language.

1. Uninsured and Underinsured Crashes Are More Common Than People Realize

Even though Arizona law requires every driver to carry auto liability insurance, a significant number of people still operate vehicles without the required coverage. Some drivers face financial constraints. Others knowingly take the risk. Still others mistakenly believe their canceled or expired policy is still active. Regardless of the reason, uninsured drivers remain a persistent issue across the state.

The Arizona Department of Insurance & Financial Institutions (DIFI) emphasizes that mandatory insurance laws do not guarantee compliance. Enforcement is also limited—meaning some uninsured drivers remain on the road for years without penalty unless they are involved in a collision.

On top of this, a large portion of drivers carry only the state minimum liability limits, which include:

• $25,000 per person for bodily injury
  
• $50,000 per accident total (for all injured people)
  
• $15,000 for property damage
  

In a minor collision, these limits may be adequate. But in crashes involving emergency treatment, ambulance transport, CT scans, orthopedic injuries, or extended follow-up care, these limits are often exhausted quickly.

Uninsured Motorist Data in Arizona

According to the Insurance Research Council (IRC), an estimated 11.9% of Arizona drivers were uninsured in 2022–23. That means nearly one in nine drivers have no liability coverage at all. This statistic does not include drivers who carry only minimal coverage, which can still leave injured victims with substantial out-of-pocket expenses.

Why These Numbers Matter for Injury Victims

Even a moderate crash can lead to:

• Multiple medical visits
  
• Lost income from missed work
  
• Physical therapy needs
  
• Diagnostic imaging or specialist care
  
• Long-term symptoms that disrupt daily activities
  

When the at-fault driver has inadequate insurance, these expenses can fall directly onto the injured individual unless other coverage is available. This is why uninsured and underinsured motorist protection plays such an important role in Arizona.

2. UM/UIM Coverage Can Help Pay for Losses When the At-Fault Driver Cannot

Many drivers are unaware that UM/UIM coverage is already included in most Arizona auto policies unless they specifically declined it in writing. Insurance companies are required by law to offer this coverage, and it is designed to protect you—not other drivers on the road.

UM/UIM coverage can help pay for your injuries when the at-fault driver:

• Has no insurance at all
  
• Has insufficient insurance limits to cover your losses
  
• Flees the scene (hit-and-run)
  
• Cannot be identified (e.g., a vehicle leaves the scene too quickly to obtain information)
  
• Causes injuries to you as a pedestrian or bicyclist
  

What UM/UIM Coverage Typically Pays For

Unlike some forms of insurance that apply only to property damage, UM/UIM coverage is often available for a broad range of losses:

1. Medical expenses
   Covers emergency treatment, hospital care, surgeries, diagnostic imaging, medications, and follow-up visits. Medical bills often make up a large portion of damages in injury cases.
   
2. Lost income
   If your injuries prevent you from working—temporarily or long-term—UM/UIM coverage may help replace that lost income.
   
3. Reduced earning capacity
   In cases involving lasting impairment, injuries may affect your ability to work in the same position or earn the same income.
   
4. Pain and suffering
   Non-economic damages may be available depending on the nature of your injuries.
   
5. Funeral expenses
   In fatal crashes, UM/UIM coverage can help support surviving family members with unexpected costs.
   

Why You May Still Need Help With a UM/UIM Claim

Even though this coverage comes from your own insurer, it doesn’t necessarily mean the process will be simple. Insurance companies still evaluate UM/UIM claims like any other claim, and they may:

• Question the severity of injuries
  
• Dispute medical expenses
  
• Challenge whether the other driver was uninsured
  
• Argue that certain losses are unrelated to the crash
  
• Attempt to settle for less than the policy allows
  

Understanding how to document your injuries and communicate with insurers can make a meaningful difference in the outcome of your claim.

3. What You Should Do After an Uninsured or Underinsured Motorist Accident

What you do in the minutes, hours, and days after a crash can directly affect your ability to recover compensation later. Even when the other driver lacks insurance, careful documentation can help protect your rights.

Here’s a more detailed look at the steps that matter most:

Call 911 Immediately

A police report is essential in uninsured motorist claims. The report helps establish:

• The identity of the at-fault driver
  
• Whether the driver carried insurance
  
• How the crash occurred
  
• Road and weather conditions
  
• Any citations issued
  

If the driver flees the scene, the report documents the hit-and-run.

Gather Information at the Scene

If safe to do so, exchange names, phone numbers, license plate details, and vehicle information. Even if the driver admits to having no insurance, gathering this information helps support your claim and gives your insurer the details they need.

Document Evidence Thoroughly

Photographs or videos can be very powerful evidence. Capture:

• All vehicle damage
  
• License plates
  
• Skid marks or debris
  
• Traffic signs and signals
  
• The point of impact
  
• Injuries to you or other passengers
  

This documentation can help resolve disputes if your insurer questions fault or damages.

Seek Medical Attention Right Away

Even if you feel fine, symptoms like neck pain, back pain, headaches, dizziness, or numbness may appear later. Medical treatment serves two purposes:

1. Protecting your health
   
2. Creating a clear medical record connecting your symptoms to the crash
   

Gaps in treatment are one of the most common reasons insurers challenge UM/UIM claims.

Notify Your Insurer Promptly

Most policies require notification “as soon as reasonably possible.” Delay can affect your ability to file a successful UM/UIM claim, particularly in hit-and-run cases.

Be Careful With Recorded Statements

Even with your own insurer, a recorded statement is used to evaluate (or challenge) your claim. It's best to understand your coverage and your injuries before giving formal statements.

4. You May Still Have Options Even If You Don’t Have UM/UIM Coverage

Many people assume that without UM/UIM coverage, they have no way to recover costs after an uninsured motorist crash. In reality, there are often other avenues worth exploring.

Potential Sources of Compensation Without UM/UIM Coverage

1. The at-fault driver’s personal assets
   While not always practical, some individuals have assets that can be pursued. This is more realistic in certain cases, but it depends heavily on the specific situation.
   
2. Employer liability
   If the driver was working at the time of the crash—such as operating a delivery vehicle, rideshare car, or service truck—there may be additional liability coverage through their employer.
   
3. Vehicle owner liability
   Arizona law allows injury victims to pursue claims against the owner of a vehicle if they allowed someone else to drive it.
   
4. Health insurance
   While it won’t cover all losses, health insurance can reduce out-of-pocket medical bills. Coordination of benefits matters to avoid duplicate payments or reimbursement issues.
   
5. Medical payments (MedPay) coverage
   Many Arizona drivers carry MedPay without realizing it. This coverage applies regardless of who caused the crash and can help pay early medical bills.
   
6. Potential third-party liability
   In some cases, road defects, vehicle defects, or negligent maintenance may contribute to the crash.
   

Exploring all possible coverage sources ensures crash victims do not miss compensation they may be entitled to.

5. UM/UIM Claims Can Be More Complex Than They Appear

UM/UIM claims often become more complicated as injuries evolve, medical bills accumulate, or policy questions arise. These complexities may include:

Disputes Over Fault

Your insurer may challenge:

• How the crash occurred
  
• Whether a hit-and-run qualifies for UM coverage
  
• Whether another party contributed to the crash
  

Clear documentation becomes important for resolving these questions.

Disputes Over Damages

Insurance companies may question:

• The extent of your injuries
  
• Whether certain treatments are necessary
  
• Whether symptoms are related to the crash
  
• The duration of your recovery
  

Detailed medical records and consistent treatment can help address these issues.

Policy Limit Issues

Some crashes involve:

• Multiple injured people
  
• Competing claims under the same policy
  
• Exhausted liability limits
  

Understanding how your policy applies to these scenarios helps ensure nothing is overlooked.

Bad-Faith Insurance Conduct

Insurers must evaluate claims fairly. Problems can arise if:

• Benefits are delayed without explanation
  
• Claims are undervalued
  
• Coverage is denied without justification
  
• Communication is inconsistent or unclear
  

Knowing your rights under Arizona insurance law can help you respond appropriately.

Frequently Asked Questions About Uninsured Motorist Accidents

1. Is uninsured motorist coverage required in Arizona?
No. Arizona does not require UM/UIM coverage, but insurers must offer it. Drivers can decline it in writing.

2. What is the difference between uninsured and underinsured motorist coverage?
Uninsured coverage applies when the at-fault driver has no insurance. Underinsured coverage applies when the driver has insurance, but the limits do not cover the full extent of your losses.

3. Does uninsured motorist coverage pay for vehicle damage?
Often, UM coverage applies only to bodily injury. Some policies include uninsured motorist property damage (UMPD), but this varies.

4. What if I was a passenger in someone else’s vehicle?
You may have access to multiple layers of coverage, depending on both the driver’s policy and your own.

5. Does UM coverage apply to hit-and-run accidents?
Yes, as long as the crash is reported promptly and the driver cannot be identified.

Contact Gallagher & Kennedy

If you have questions about UM/UIM coverage or want help understanding your options after an accident, Gallagher & Kennedy’s Phoenix car accident attorneys are available to review your situation and explain the process.