Uninsured & Underinsured Motorist Coverage in Arizona: What Drivers Need to Know
You can do everything right on the road and still find yourself in a difficult situation after an accident.
You might carry the required auto insurance, follow traffic laws, and drive carefully. But what happens if another driver causes an accident and doesn’t have insurance? Or what if they have insurance, but their policy doesn’t provide enough coverage to pay for your injuries?
For Arizona drivers, these situations are exactly why uninsured motorist (UM) and underinsured motorist (UIM) coverage are worth understanding.
Although Arizona requires drivers to carry liability insurance, not everyone on the road has adequate coverage. And even when another driver meets the state’s minimum insurance requirements, those limits may not be enough to cover the financial impact of a serious accident.
Understanding how uninsured and underinsured motorist coverage works can help you make more informed decisions about your auto insurance and avoid unexpected financial challenges.
What Is Uninsured Motorist Coverage in Arizona?
Uninsured motorist coverage, commonly called UM coverage, helps protect you if you’re injured in an accident caused by a driver who doesn’t have qualifying auto liability insurance.
Instead of relying on the at-fault driver’s insurance to pay for your covered injuries, you may be able to make a claim through the uninsured motorist coverage on your own auto insurance policy.
Depending on the circumstances and your policy, uninsured motorist coverage may help compensate you for damages such as:
Medical expenses resulting from covered injuries
Lost wages if injuries prevent you from working
Pain and suffering associated with the accident
Other qualifying bodily injury damages
For example, imagine you’re driving through Phoenix when another driver runs a red light and hits your vehicle.
You suffer injuries that require medical treatment, but you discover the other driver doesn’t have auto liability insurance.
Without uninsured motorist coverage, recovering compensation for your injuries may require pursuing the responsible driver directly.
With UM coverage, your own insurance policy may provide compensation for qualifying bodily injury damages, up to your coverage limits and subject to policy terms.
It’s important to understand that uninsured motorist coverage in Arizona primarily addresses bodily injury damages. It does not automatically pay to repair your vehicle.
What Is Underinsured Motorist Coverage in Arizona?
Underinsured motorist coverage, or UIM coverage, helps protect you when an at-fault driver has liability insurance, but the available coverage isn’t enough to compensate you for your injuries.
This is an important distinction because having insurance doesn’t necessarily mean another driver has sufficient insurance.
Arizona allows drivers to meet their legal insurance obligations with relatively modest liability limits. Following a serious accident, medical expenses and other damages can exceed those amounts.
Example: When the Other Driver’s Insurance Isn’t Enough
Imagine another driver causes an accident that results in $75,000 in qualifying bodily injury damages.
The at-fault driver carries only $25,000 in bodily injury liability coverage per person.
Even if their insurer pays the full $25,000, you may still have $50,000 in uncompensated damages.
If you carry underinsured motorist coverage, your policy may help address some or all of that remaining amount, depending on your UIM limits, applicable insurance payments, and policy conditions.
Underinsured motorist coverage provides an additional layer of financial protection when the responsible driver’s liability insurance falls short.
Uninsured vs. Underinsured Motorist Coverage: What’s the Difference?
Although these coverages sound similar, they apply to different situations.
| Coverage | Uninsured Motorist (UM) | Underinsured Motorist (UIM) |
|---|---|---|
| Other driver’s insurance | No qualifying liability insurance | Has liability insurance, but insufficient limits |
| Primary purpose | Helps cover qualifying injury damages caused by an uninsured driver | Helps cover qualifying injury damages beyond available liability limits |
| Medical expenses | May be covered | May be covered |
| Lost wages | May be covered | May be covered |
| Vehicle repairs | Not typically covered under Arizona UM bodily injury coverage | Not typically covered under Arizona UIM bodily injury coverage |
| Required in Arizona? | No, but must generally be offered | No, but must generally be offered |
Both coverages are designed to help protect you financially when another driver’s insurance cannot adequately compensate you for covered bodily injury damages.
However, they are separate protections. Purchasing one does not automatically mean you have the other.
Is Uninsured Motorist Coverage Required in Arizona?
No. Arizona does not require drivers to purchase uninsured or underinsured motorist coverage.
However, Arizona law generally requires auto insurance companies to offer both types of coverage to policyholders.
Under Arizona Revised Statutes § 20-259.01, insurers must make uninsured and underinsured motorist coverage available, subject to the law’s requirements.
Drivers may choose to purchase these coverages or reject them.
This means you can legally drive in Arizona without UM or UIM coverage, provided you satisfy the state’s mandatory financial responsibility requirements.
But meeting the legal minimum and having sufficient financial protection are not necessarily the same thing.
Before declining either coverage, it’s worth understanding what you could be responsible for financially if an uninsured or underinsured driver causes an accident.
What Are Arizona’s Minimum Auto Insurance Requirements?
Arizona requires most drivers to carry minimum liability insurance limits of 25/50/15.
Here’s what those numbers mean:
$25,000: Bodily injury liability coverage per person
$50,000: Bodily injury liability coverage per accident involving two or more people
$15,000: Property damage liability coverage per accident
These are the minimum liability limits established by Arizona law.
Liability insurance generally helps pay for qualifying injuries or property damage you cause to others. It does not serve the same purpose as uninsured or underinsured motorist coverage.
For example, if another driver causes an accident and carries only $25,000 in bodily injury liability coverage, that amount may be insufficient if your medical expenses and other qualifying damages are substantially higher.
This is one reason Arizona drivers may want to consider purchasing UM and UIM coverage even though neither is mandatory.
How Much Uninsured and Underinsured Motorist Coverage Do You Need?
There isn’t one coverage amount that’s right for every Arizona driver.
Your decision should reflect your financial circumstances, existing insurance, and how much protection you want if another driver causes a serious accident.
Arizona drivers who elect UM or UIM coverage can generally select limits beginning at $25,000 per person and $50,000 per accident, up to their bodily injury liability limits, subject to available policy options.
For example, if you carry bodily injury liability limits of $100,000 per person and $300,000 per accident, you may be able to select matching UM and UIM limits.
When deciding how much coverage makes sense, consider:
Your Financial Responsibilities
If an accident leaves you unable to work, how would lost income affect your household?
Consider your mortgage or rent, everyday expenses, and other financial obligations.
Your Health Insurance
Health insurance may help cover medical treatment after an accident, but deductibles, copayments, and other out-of-pocket expenses may still apply.
Health insurance also doesn’t necessarily compensate you for lost wages or pain and suffering.
Your Existing Auto Insurance Limits
Reviewing your bodily injury liability limits alongside your UM and UIM limits can help you identify potential gaps.
Your Budget
Higher coverage limits generally increase your premium, but the additional cost may be worthwhile depending on your circumstances.
An independent insurance agent can help you compare available limits and understand how different coverage options affect your overall policy.
Does Uninsured Motorist Coverage Pay for Vehicle Damage?
This is one of the most common misconceptions about uninsured motorist coverage.
In Arizona, standard uninsured and underinsured motorist coverage focuses on bodily injury damages rather than damage to your vehicle.
If an uninsured driver damages your car, collision coverage may help pay for repairs or replacement, subject to your deductible and policy conditions.
For example, if another driver hits your parked vehicle and doesn’t have insurance, your collision coverage may provide a way to address the damage if the loss is covered.
Without collision coverage, you may have fewer options for recovering repair costs through your own insurance.
This is why it’s important to review your entire auto insurance policy rather than assuming UM or UIM coverage protects against every expense associated with an accident.
Does Uninsured Motorist Coverage Apply to Hit-and-Run Accidents?
Hit-and-run accidents can create additional complications because the responsible driver may leave the scene before their identity or insurance information can be established.
Depending on the circumstances, Arizona uninsured motorist coverage may apply to qualifying bodily injury claims involving an unidentified driver.
However, these claims can involve specific legal requirements, documentation, and policy conditions.
If you’re involved in a hit-and-run accident, it’s important to report the incident promptly, seek medical attention if needed, and notify your insurance company.
Your insurer can explain what information is required to evaluate the claim.
What Should You Do After an Accident With an Uninsured Driver in Arizona?
Being involved in an accident is stressful, particularly when you discover the other driver may not have insurance.
Taking the appropriate steps can help protect your safety and preserve important information for an insurance claim.
1. Prioritize Safety and Medical Attention
Move to a safe location if possible and seek emergency assistance when necessary.
Even if injuries seem minor, consider obtaining medical attention because some symptoms may not appear immediately.
2. Contact Law Enforcement
Report the accident when required and provide accurate information about what happened.
A police report can help document the circumstances, particularly when the other driver is uninsured or leaves the scene.
3. Gather Information
If it’s safe to do so, collect the other driver’s contact and vehicle information.
Take photographs of vehicle damage, the accident scene, and any relevant road conditions.
If witnesses are present, ask whether they’re willing to provide contact information.
4. Notify Your Insurance Company
Contact your insurer as soon as reasonably possible to report the accident.
Explain what happened and ask whether your uninsured or underinsured motorist coverage may apply.
5. Review Your Available Coverage
Your insurance company can help identify which coverages may be relevant, including UM, UIM, collision, and medical payments coverage.
Coverage availability and claim requirements depend on your specific policy and the circumstances of the accident.
Common Mistakes Arizona Drivers Make With UM and UIM Coverage
When reviewing auto insurance, many drivers focus primarily on the monthly premium.
While affordability matters, a few common decisions can leave you with unexpected financial exposure.
Assuming Every Driver Has Insurance
Although Arizona requires liability insurance, that doesn’t guarantee every driver on the road maintains coverage.
Choosing Only the Minimum Liability Limits
Minimum coverage satisfies the state’s basic requirements, but it may not provide sufficient protection in a serious accident.
Confusing Liability Coverage With UM/UIM
Your liability insurance generally protects against qualifying claims from others when you’re responsible for an accident.
UM and UIM coverage help address certain injury damages when another responsible driver has no qualifying insurance or insufficient coverage.
Assuming UM/UIM Covers Vehicle Repairs
These coverages generally focus on bodily injury damages. Collision coverage serves a different purpose.
Not Reviewing Coverage After Life Changes
Changes in your commute, household drivers, finances, or vehicle ownership may affect your insurance needs.
Reviewing your policy periodically can help ensure your coverage continues to align with your circumstances.
Frequently Asked Questions About Uninsured Motorist Coverage in Arizona
Is uninsured motorist coverage mandatory in Arizona?
No. Arizona requires insurers to offer uninsured motorist coverage, but drivers can decline it. The same general rule applies to underinsured motorist coverage.
What happens if an uninsured driver hits me in Arizona?
If you carry uninsured motorist coverage, you may be able to make a claim for qualifying bodily injury damages through your own policy. Collision coverage may help with covered vehicle damage. The outcome depends on the accident, available evidence, and your policy.
Is underinsured motorist coverage worth having in Arizona?
It may be valuable because another driver can carry the state-required minimum liability coverage and still lack sufficient insurance to compensate you for a serious injury. Whether to purchase it depends on your budget, risk exposure, and coverage needs.
Can I purchase both uninsured and underinsured motorist coverage?
Yes. Arizona insurers generally must offer both coverages. They address different circumstances and can provide complementary protection.
Does uninsured motorist coverage cover passengers?
Arizona UM and UIM coverage generally extends to persons insured under the policy, which may include passengers in covered circumstances. Eligibility depends on the policy and applicable law.
Does uninsured motorist coverage have a deductible?
Arizona UM and UIM bodily injury coverage generally does not operate with the same type of property damage deductible as collision coverage. However, policy provisions and claim circumstances should be reviewed with your insurer.
Can I add UM or UIM coverage to my existing Arizona auto insurance policy?
You can generally request to add or adjust these coverages, subject to your insurer’s requirements and available limits. Coverage changes are not retroactive and must be effective before a loss occurs.
Protect Yourself Beyond Arizona’s Minimum Auto Insurance Requirements
Meeting Arizona’s minimum auto insurance requirements is important, but those minimums don’t necessarily provide all the protection you may need after a serious accident.
Uninsured and underinsured motorist coverage can help address certain financial consequences when another driver causes an accident and lacks sufficient insurance.
At Unite Insurance, we believe understanding your coverage is just as important as having it.
As an independent insurance agency, our team can help Arizona drivers review their existing policies, understand available UM and UIM options, and compare coverage that aligns with their needs and budget.
Whether you’re purchasing a new auto insurance policy or reviewing your current protection, we’re here to help you make informed decisions.
Ready to review your Arizona auto insurance coverage? Contact Unite Insurance to speak with an agent and request a personalized quote.