Arizona has a persistently high rate of uninsured drivers, and many who do carry insurance only have the state minimum of $25,000 per person. When a serious crash can generate hundreds of thousands of dollars in medical bills, those minimums evaporate quickly. That gap is exactly what uninsured (UM) and underinsured (UIM) motorist coverage is designed to fill.
Arizona's Uninsured Driver Problem
UM coverage applies when the at-fault driver has no insurance or flees the scene in a hit-and-run. UIM coverage applies when the at-fault driver has some insurance, but not enough to cover your losses. Both pay out of your own policy, which surprises many people.
Insurers Must Offer It — and You Probably Have It
Arizona law requires auto insurers to offer UM and UIM coverage. You can decline it in writing, but if you never affirmatively rejected it, you likely have it. Many injured Arizonans do not realize they are carrying valuable coverage that could pay their bills after a crash with an underinsured driver.
Reviewing your own policy, and the policies of family members in your household, is one of the first things to do after a serious crash. The coverage may be larger than you think.
Stacking: Multiplying Your Protection
In some situations, Arizona allows 'stacking,' combining the UM/UIM limits across multiple vehicles on a policy or across multiple policies. If you have three insured vehicles each carrying $50,000 in UIM, stacking could potentially make $150,000 available for a single claim.
The rules around stacking are technical and depend on your specific policy language. This is an area where experienced legal review can uncover coverage that an injured person, or even their insurer, did not initially account for.
Your Own Insurer Is Not Automatically on Your Side
A UM/UIM claim is filed against your own insurance company, but do not assume they will treat you generously. These claims are adversarial: your insurer has a financial interest in paying as little as possible. They may dispute the severity of your injuries or the value of your claim.
Arizona law imposes a duty of good faith and fair dealing on insurers, and an insurer that unreasonably denies or delays a valid claim may face a bad-faith lawsuit. An attorney can hold your insurer to that standard and pursue the full value of your coverage.
What to Do After an Underinsured-Driver Crash
Report the crash to your insurer promptly, but be cautious with recorded statements and quick offers. Preserve all documentation of your injuries and losses, and have your policy reviewed for UM/UIM coverage and stacking opportunities. A free case review can map out every source of compensation available to you.
Have questions about your own situation? Get a free, confidential case review. You pay no fee unless you win. Call 973-566-5599.
This article is for general informational purposes only and is not legal advice. For guidance on your specific situation, consult a licensed Arizona attorney.