Arizona consistently ranks among the states with the highest rates of uninsured drivers — by some estimates, more than one in six Arizona drivers carries no auto insurance at all. If you are involved in an accident with one of those drivers, your primary financial protection is your own uninsured motorist (UM) coverage. Understanding how it works, what it covers, and how to use it effectively can be the difference between full recovery and devastating financial loss.
What Arizona Law Requires — and What It Does Not
Arizona requires all drivers to carry minimum liability insurance: $25,000 per person/$50,000 per accident for bodily injury, and $15,000 for property damage (ARS § 28-4009). However, Arizona does not require drivers to carry uninsured or underinsured motorist coverage. Insurers are required to offer UM coverage, but you can decline it in writing.
This creates a significant protection gap. The minimum required liability coverage ($25,000) is also often inadequate for serious injuries. This is why underinsured motorist (UIM) coverage is equally important — it covers the gap when the at-fault driver has insurance but not enough to cover your full damages.
How UM Coverage Actually Works
When you are injured by an uninsured driver, your UM coverage functions as a substitute for the insurance the at-fault driver should have been carrying. Your insurer steps into the at-fault driver's shoes and compensates you for your damages — medical bills, lost wages, pain and suffering — up to your UM policy limits.
For underinsured situations (where the at-fault driver has some coverage but not enough), your UIM coverage pays the difference between what their policy pays and your actual damages, up to your UIM limits. If you have $100,000 in UIM coverage and the at-fault driver pays $25,000 from their policy, your UIM coverage can provide up to $75,000 in additional compensation.
What UM/UIM Coverage Typically Covers
- Medical bills for injuries caused by the uninsured/underinsured driver
- Lost wages and loss of earning capacity
- Pain and suffering and other non-economic damages
- Funeral and burial expenses in wrongful death cases
- Damages in hit-and-run accidents where the driver cannot be identified
Note: UM coverage is for personal injury. Property damage from an uninsured driver is covered by a separate uninsured motorist property damage (UMPD) coverage option.
The Critical Mistake: Filing a UM Claim Without an Attorney
Many people assume that because they are filing a claim with their own insurance company — the company they have paid premiums to for years — the insurer will treat them fairly. This assumption is dangerous. When you file a UM claim, your own insurance company becomes an adversary in the claim. Their goal is to pay as little as possible, just as in any other claim. They will use the same tactics: recorded statements, requests for broad medical authorizations, delays, and lowball offers.
Frequently Asked Questions
How much UM/UIM coverage should I carry?
As much as you can afford. The minimum limits available are often the same as the state liability minimums ($25,000/$50,000), but given the frequency of serious accidents and the potential for six- or seven-figure medical expenses, most insurance professionals recommend carrying at least $100,000/$300,000 in UM/UIM coverage. It is one of the most cost-effective coverages available.
Does filing a UM claim raise my insurance rates?
In Arizona, insurers are generally not permitted to surcharge your rates for a not-at-fault UM claim, since you were the victim, not the responsible party. However, check with your specific insurer, as policies vary. This concern should not prevent you from making a claim you are legally entitled to.
What if the hit-and-run driver is later identified?
You can pursue both your UM claim (against your own insurer) and a third-party claim against the identified driver simultaneously. Your attorney can coordinate these to maximize recovery while preventing double recovery.
Can I stack UM coverage across multiple vehicles?
Arizona allows "stacking" of UM coverage in some circumstances — applying the limits from multiple vehicles on the same policy (or separate policies) to a single accident. Anti-stacking provisions in policies may limit this right. This is a nuanced area where an attorney's review of your policy can identify additional coverage you may not know you have.
What if my UM claim is denied by my own insurer?
A first-party UM denial may constitute insurance bad faith if it is done without a reasonable basis. Arizona provides strong protections against bad faith insurance practices, and a denied UM claim is absolutely worth reviewing with an attorney — both to challenge the denial and to evaluate whether a bad faith claim is warranted.
Injured in Arizona? Get a Free Case Review Today
Navigating a personal injury claim alone — especially against a well-funded insurance company — is difficult. Attorney Alec Caruso spent years on the inside defending insurance companies before switching sides to fight for Arizona injury victims. That insider knowledge is what he brings to every case.
Call Caruso Injury Law 24/7 at (602) 247-8600, or request your free case review online. You pay nothing unless we win.
This article was written and reviewed by Alec J. Caruso, Esq., licensed Arizona personal injury attorney.
