How Does Car Accident Compensation Work in Arizona?

How Does Car Accident Compensation Work in Arizona?

Knowing the ins and outs of Arizona car accident insurance compensation is critical if you ever find yourself a victim of a car accident. Arizona’s laws outline specific rules for determining fault and pursuing claims for damages, ensuring victims have a clear path to recover what they’ve lost. As an at-fault state, Arizona places responsibility for covering damages on the driver who caused the accident, making it essential to know your rights and the steps needed to secure fair compensation.

Arizona Car Accident Laws for Personal Injury Claims Claims

Navigating Arizona’s car accident laws is crucial for anyone seeking compensation after an accident. These laws establish the timeline for filing a claim and how fault impacts the amount of compensation you may recover. The next key statutes can help you take the right steps to protect your rights:

ARS 12-542:

  • The statute of limitations for car accident claims is 2 years in order to collect compensation for damages.

ARS 12-2505:

  • Comparative negligence law
  • Determines the fault of all drivers involved in an auto accident, if the fault was shared among drivers.
  • Depending on the percentage of fault for the victim, the compensation they receive will correspond with the percentage of fault. For example, if you are found to be 20% at fault for the accident, your total compensation will be reduced by 20%. Unlike modified comparative negligence states, Arizona allows you to recover damages even if you are primarily at fault, though your compensation will be proportionally reduced.

Is Arizona a Fault or No-Fault State for Car Accidents?

Arizona is an at-fault state for car accidents. This means the driver responsible for causing the accident is liable for covering the damages and injuries. Victims can seek compensation directly from the at-fault driver’s insurance, file a claim with their own insurer, or pursue a personal injury lawsuit. Unlike no-fault states, Arizona does not require drivers to carry Personal Injury Protection (PIP) coverage, making liability coverage essential for all drivers.

Types of Car Insurance in Arizona

Insurance companies in Arizona require drivers to have bodily injury and property damage policies. The mandatory minimum coverage requirements are as follows:

  • $25,000 for bodily injury per person.
  • $50,000 for bodily injury per accident (when multiple people are injured).
  • $15,000 for property damage per accident.

This minimum coverage is not seen as enough to pay for all damages and injuries. Higher policies are seen as better protection for Arizona drivers. There are other optional auto insurance coverages you can add to your mandatory coverages.

  • Collision: This coverage protects your car in a crash to help pay for the property damage.
  • Comprehensive: This protects your car in the event of theft or damage from natural disasters.
  • Uninsured motorist: If the at-fault driver doesn’t have insurance, this coverage will protect you from having to pay for damages out of pocket.
  • Roadside assistance: Provides emergency assistance if your vehicle breaks down, needs a tire, or if one of the windows breaks.
  • Medical coverage: This provides financial protection for you and any passengers for medical bills and funeral costs if needed.

If you are asked for proof of insurance during a normal traffic stop or after an accident and you do not have insurance, you will face suspension of your license and/or vehicle registration. You will have to pay hefty fees and file proof of insurance with the Arizona Motor Vehicle Department in order to no longer be suspended.

  1. For the first offense, you will have to pay a $500 fine, and your driver’s license and vehicle registration will be suspended for three months.
  2. For the second offense, you will have to pay a $750 fine, and your driver’s license and vehicle registration will be suspended for six months.
  3. For the 3rd offense, you will have to pay a $1000 fine, and your driver’s license and vehicle registration will be suspended for one year.

You have three options in order to claim any compensation either from your insurance or the at-fault driver’s insurance company. First, you can file a claim with your insurance company and collect a settlement with them. Another option would be filing a claim directly with the at-fault driver’s insurance company. The last option would be filing a claim with a personal injury law firm against the at-fault driver’s insurance.

It is important to note that your insurance policy will cover your family members involved in a car accident in your vehicle. This will also extend to someone driving your car with your permission even if you are not in the car.

What Car Accident Compensation Can Be Claimed?

Auto accident victims in Arizona can claim two primary types of damages: economic and non-economic. Economic damages compensate for measurable financial losses, including medical expenses, future medical, property damage, and lost wages. Non-economic damages address the personal toll of the accident, such as pain, suffering, emotional distress, and diminished quality of life.

For victims injured in a car accident and unable to return to work due to that, lost wages become a critical component of compensation. Physical impairments resulting from a car accident may require surgeries, physical therapy, or lifelong care, further affecting your earning potential.

Lost wages can be calculated for both hourly and salaried workers. For salary workers, you calculate the hourly rate by dividing the total salary by the yearly weekday hours, then multiply this rate by the hours missed due to the injury. Hourly workers can multiply their regular rate by the hours they were unable to work.

Non-economic damages, such as pain and suffering, reflect the physical and emotional impact of the accident. These include, but are not limited to:

  • Chronic pain: Persistent pain that cannot be fully managed.
  • Discomfort: Loss of physical comfort or relaxation.
  • Disabilities: Loss of the ability to perform normal activities.
  • Anxiety and PTSD: Emotional trauma, such as fear of driving.
  • Depression: Emotional distress requiring therapy.
  • Disfigurement: Severe injuries like loss of limbs or scarring.
  • Loss of companionship: Death of a loved one affecting relationships.
  • Loss of enjoyment of life: The cumulative impact of these losses.

Arizona commonly uses the multiplier method to calculate pain and suffering damages, where economic losses are multiplied by a factor based on injury severity. For example, if your economic damages total $150,000, the non-economic damages may equal or exceed this amount.

Alternatively, the per diem method assigns a daily value for pain and suffering, calculated for every day you endure the effects of the accident. Attorneys and insurers often negotiate the final amount, ensuring it reflects the full scope of your losses.

By understanding and documenting your economic and non-economic damages, you can ensure your compensation aligns with the true impact of the accident.

What Evidence is Needed to Prove Negligence

Since Arizona is an at-fault state, it is better to have a car accident lawyer helping you with your claim. Comparative negligence is used to find the percentage of fault among drivers involved in auto accidents. This requires a thorough investigation in order to determine fault. Our personal injury law firm provides free consultations for car accident cases and other personal injury matters.

Evidence is essential when trying to prove the other driver is at fault for the crash. Both insurance companies will send out investigators to gather details about the accident to provide a quote of compensation. If you decide to pursue the claim with an Arizona car accident attorney, there are a few pieces of evidence they will need.

After a car accident, having a police report created is the most important piece of evidence to have when pursuing a claim. The report will have details about the crash for all vehicles involved. It will also include the location of the accident scene and contact information for all parties. The Arizona Department of Transportation outlined an accident reporting procedure to contact the authorities and also how to be safe.

Medical documentation of injuries as a result of the crash will help you collect compensation for those medical expenses. Take photos of the damage done to your vehicle and other vehicles involved. Notifying your insurance carrier about your accident so they can send an adjuster out to assess the damages. You do not need to sign anything or accept any type of payment from your insurance carrier.

How Much Is My Arizona Car Accident Settlement Worth?

The value of your Arizona auto accident case depends on multiple factors, each tailored to your unique circumstances. Compensation typically includes both economic damages—such as medical expenses, lost wages, and property damage—and non-economic damages, like pain and suffering, emotional distress, and loss of enjoyment of life. Cases involving severe injuries or long-term impairments often result in higher car accident settlements or verdicts.

Arizona’s pure comparative negligence law plays a significant role in determining financial compensation. If you share any fault for the accident, your total award will decrease based on your percentage of responsibility. For example, if your damages total $100,000 and you are 20% at fault, you would receive $80,000.

Insurance policy limits are another key factor. If the at-fault driver carries only the state’s minimum coverage, your ability to recover the full amount of damages may be limited unless they have additional assets or you have uninsured/underinsured motorist coverage.

How our car accident lawyer can help?

Working with one of our skilled car accident attorneys can help you maximize the value of your claim and car accident settlement results by gathering evidence, negotiating with insurers, and accurately calculating both present and future damages, including long-term medical needs or income losses. Every case is unique, and an in-depth evaluation of your specific injuries, evidence, and financial losses will help determine its worth.

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