An accident with an uninsured or underinsured driver creates immediate financial questions. Your Uninsured Motorist (UM) coverage in Arizona acts as a shield, stepping in to cover your losses when the at-fault party cannot.
Pursuing a UM claim in Arizona is a distinct process from a standard liability claim. Learning how this coverage functions and what steps to take after a collision can help you regain control and financial stability.
Key Takeaways for Uninsured Motorist Coverage in Arizona
- Arizona requires drivers to carry liability insurance, but many still drive without it.
- Uninsured/Underinsured Motorist (UM/UIM) coverage from your own policy pays for your damages if the at-fault driver has no insurance or insufficient coverage.
- Your insurance company must offer UM/UIM coverage, and you must reject it in writing if you choose not to purchase it.
- UM/UIM coverage typically applies to medical expenses, lost wages, and pain and suffering.
- An Arizona personal injury lawyer can manage your UM claim to protect your interests.
Arizona’s Insurance Requirements and the Uninsured Driver Problem
Arizona mandates that all motorists carry a minimum amount of liability insurance. The purpose of this insurance is to cover the costs of damages and injuries the policyholder may cause in an accident. State law sets specific minimums for this coverage, often referred to as a 25/50/15 plan.
The state’s minimums require drivers to maintain at least $25,000 in bodily injury liability coverage per person and $50,000 per accident, along with $15,000 in property damage liability per accident.
Despite these legal requirements, 10.6% of drivers in Arizona were uninsured in 2023. This reality poses a substantial risk to every responsible driver who follows the law.
An accident with an uninsured driver means you cannot seek compensation from their nonexistent policy, placing the financial burden squarely on you without the proper coverage.
This is precisely why uninsured motorist coverage in Arizona exists—to protect you from the financial fallout of another driver's irresponsibility.
The Role of Uninsured and Underinsured Motorist Coverage
Your insurance policy is your first line of defense after a crash with a driver lacking proper coverage, as UM/UIM coverage is explicitly designed for this situation. While often bundled together, they serve two distinct but related purposes.
Uninsured Motorist Coverage
Your UM coverage applies when the at-fault driver has no liability insurance at all. This also includes hit-and-run scenarios where the driver cannot be identified. In these cases, your UM coverage steps into the shoes of the at-fault driver’s missing liability insurance.
A lawyer can help you file the claim with your insurance provider, which covers your losses up to the limits you selected for your policy.
This protection is a crucial element of your own policy. Without it, you would have limited options for compensation. You may attempt to sue the driver personally, but an individual who doesn’t carry auto insurance often lacks the assets to pay a judgment.
Underinsured Motorist Coverage
When the at-fault driver has insurance but their policy limits are too low to cover the full extent of your injuries and damages, UIM coverage fills in the gap. This happens frequently, as many drivers only purchase the state’s minimum required coverage.
An Arizona uninsured driver accident claim sometimes turns into a UIM claim when you discover the at-fault driver has a policy, just not a sufficient one.
For example, imagine your medical bills and lost wages total $75,000, but the at-fault driver’s bodily injury liability limit is only the minimum $25,000.
Their insurance would pay you the $25,000 policy limit. Then, your own UIM coverage would kick in to cover the remaining $50,000, assuming your UIM limits are high enough.
The Benefits of Having Robust UM/UIM Coverage in Arizona
Opting for more than the minimum UM/UIM coverage offers significant advantages for you and your family. A severe collision can bring substantial expenses, from immediate medical care to long-term rehabilitation.
Sufficient protection helps prevent a single accident from jeopardizing your financial future.
Common benefits include:
- Coverage for Medical Expenses: UM/UIM pays for everything from emergency room visits and hospital stays to follow-up appointments and physical therapy.
- Compensation for Lost Wages: If your injuries prevent you from working, this coverage can replace the income you lose during your recovery.
- Payment for Pain and Suffering: This coverage compensates you for the physical pain and emotional distress resulting from the accident.
- Protection for Your Family: UM/UIM coverage also protects passengers in your vehicle and resident family members.
How the UM/UIM Claims Process Works
Filing an uninsured motorist claim in Arizona involves a specific set of procedures. The dynamic differs from a typical third-party claim since you’re claiming your own insurance policy. Your insurance company assumes a dual role, which can sometimes create complications.
First, you must prove two main points to your insurer. You need to establish that the other driver was at fault for the accident. You also must show the extent of your damages, including medical bills, lost wages, and other losses.
This process often involves gathering evidence, such as the police report, medical records, and witness statements.
Even though you are dealing with your own insurer, their objective is still to resolve the claim for the lowest possible amount. The adjuster assigned to your case will evaluate your evidence and may dispute fault or the value of your damages.
This is a point where the process may become adversarial. A lawyer advocates for fair compensation, ensuring the insurer honors the terms of your UM policy.
6 Steps To Take After Being Hit by an Uninsured Driver in Arizona
Your actions in the days and weeks following an accident with an uninsured driver can significantly impact your ability to recover compensation. If you have already received medical attention, shift your focus to the administrative and legal aspects of the incident.
Here are the key steps to take after being hit by an uninsured driver in Arizona:
- Organize Your Documents: Gather all accident-related documents in one place. This includes the police report, the other driver's information (if you have it), photos of the scene and vehicle damage, and any medical records or bills you have received.
- Notify Your Insurance Company: Report the accident to your own insurance provider as soon as possible. Inform them that the at-fault driver is uninsured (or that it was a hit-and-run).
- Document All Your Losses: Keep a detailed record of all expenses and losses related to the accident. Track your medical treatments, prescription costs, mileage to and from doctor's appointments, and any time missed from work.
- Follow All Medical Advice: Continue with any follow-up medical care your doctor recommends. Aside from benefiting your physical recovery, adhering to your treatment plan demonstrates the severity of your injuries and strengthens your legal claim.
- Speak With an Attorney: Contact a personal injury attorney to discuss your case and learn about your options.
How an Arizona Personal Injury Lawyer Helps With Uninsured Motorist Claims
Even though you file a UM/UIM claim with your own insurance company, the process isn’t always straightforward. Your insurer may have different interests, and you need a dedicated advocate on your side.
An experienced attorney protects your rights and manages every aspect of your Arizona uninsured driver accident claim.
A lawyer provides critical support in several key areas:
- Investigating the Accident: Your lawyer will conduct a thorough investigation to establish the other driver's fault and confirm their lack of insurance. This includes gathering evidence, speaking to witnesses, and obtaining official reports.
- Handling Communications: Your attorney manages all calls, emails, and correspondence with the insurance company, protecting you from recorded statements that could be used against you and ensuring a consistent message.
- Calculating Your Damages: An attorney accounts for all of your losses, from current medical bills to future lost earning capacity. They may work with economic and medical experts to accurately value the full extent of your claim.
- Negotiating With Your Insurance Company: Lawyers are skilled negotiators who know how to identify and counter lowball settlement offers. They’ll handle all communications with the adjuster and advocate for a fair settlement that reflects the true value of your losses.
- Arbitration or Litigation: If your insurance company disputes the claim or refuses to offer a fair settlement, your attorney can represent you in arbitration or file a lawsuit to protect your rights.
FAQ for Uninsured Motorist Coverage in Arizona
Will Using My UM Coverage Make My Insurance Rates Go Up?
In Arizona, an insurer cannot raise your premiums for filing a UM/UIM claim when the accident was not your fault. State law protects consumers from being penalized for using the coverage they paid for to protect themselves from uninsured or underinsured drivers.
This allows you to pursue a claim without fear of your rates increasing due to the incident.
What if the Uninsured Driver Was a Friend or Family Member Driving My Car?
In Arizona, auto insurance typically follows the car, not the driver. If a friend or family member drives your car with your permission and is involved in a wreck, your UM/UIM coverage may still apply to protect them as occupants of your insured vehicle.
However, some policies have exclusions for household members or specific situations, so it’s important to review your policy or speak with your insurer to understand any limitations.
How Long Do I Have To File an Uninsured Motorist Claim in Arizona?
The time limit, known as the statute of limitations, for filing a UM claim in Arizona can differ from the standard personal injury timeline. The language in your insurance contract often dictates these deadlines.
Act quickly and consult with an attorney to ensure you don’t miss any deadlines for filing your claim.
What if My Uninsured Motorist Coverage Isn't Enough To Cover My Damages?
If your UM/UIM policy limits are insufficient to cover all your losses, an attorney can explore other potential sources of recovery. This could include identifying third parties who may share fault for the accident, such as a negligent employer or a government entity responsible for unsafe road conditions.
Can I Stack Uninsured Motorist Coverage Policies in Arizona?
Arizona has “anti-stacking” laws that can prevent you from combining the UM/UIM coverage limits from multiple vehicle policies to increase your total available coverage.
However, recent Arizona cases, such as Franklin v. CSAA, have clarified that stacking may be allowed in some situations if the insurer’s anti-stacking language and notice requirements aren’t met.
An experienced attorney can review your policies and circumstances to determine whether stacking is permissible.
Get the Guidance You Need
A successful UM claim in Arizona can provide the financial resources needed to move forward after a wreck. Taking proactive steps to protect your rights allows you to regain a sense of security for yourself and your family.
At Gallagher & Kennedy, we understand the challenges you face after an accident with an uninsured driver. We’ll manage the legal details so you can concentrate on your recovery. If you need help with your claim, contact our team for a free consultation at (602) 530-8400.