Getting hit by a driver with little or no insurance is more common in Arizona than you might think, and it can leave you with massive bills and no easy answers. That’s where uninsured and underinsured motorist coverage steps in. Before you brush off that part of your policy, you’ll want to know how it could protect you when the other driver can’t.
What’s the Difference Between Uninsured and Underinsured Motorist Coverage?
In Arizona, nearly 1 in 8 drivers on the road is uninsured, and many more carry only the state’s bare minimum coverage, which often isn’t enough to pay for serious injuries or vehicle damage. That’s where the difference between uninsured and underinsured motorist coverage becomes critical.
Uninsured motorist (UM) coverage helps when the at-fault driver has no insurance at all, for example, a hit-and-run, an unlicensed driver, or someone who simply never bought a policy. Arizona law requires drivers to have insurance, but thousands ignore it.
Underinsured motorist (UIM) coverage kicks in when the other driver has some insurance, but not nearly enough to cover the full cost of your medical care, lost wages, or long-term recovery.
Arizona Revised Statutes § 20-259.01 doesn’t require drivers to carry UM/UIM, but if you skip it, you risk having to pay out-of-pocket for injuries caused by someone else’s bad decisions. This coverage is especially important in accidents involving multiple people or catastrophic injuries, where even “average” liability policies run out fast.
Let’s look at how these coverages work and what kinds of situations they protect you from.
How Uninsured Motorist Coverage Works in Arizona
Uninsured motorist (UM) coverage steps in when the at-fault driver has no insurance at all, which happens more often than you might think in Arizona. Whether it’s a driver who let their policy lapse or a hit-and-run where the person disappears, you could be left holding the bills if you’re not protected. UM coverage works through your own auto insurance policy. Instead of relying on the other driver to pay for your injuries, your insurer covers the cost, as if they were standing in for the person who caused the crash. This coverage doesn’t raise your rates if the accident wasn’t your fault.
What Does UM Coverage Pay For?
UM coverage helps with medical bills, emergency care, ongoing treatment, and lost wages if your injuries keep you out of work. In some cases, it also pays for pain and suffering and funeral expenses after a fatal crash. It covers you whether you’re driving, walking, or riding as a passenger, and it can extend to family members listed on your policy.
If you’re hit by a driver who has no insurance and no assets, UM is often the only way to get the financial support you need to recover. For example, you’re heading to the grocery store in Tucson when another car slams into you. The driver has no insurance and a suspended license. You rack up $40,000 in medical bills and missed wages. Your UM coverage kicks in and pays, keeping you out of debt and out of court.
Do You Really Need Uninsured Motorist Coverage in Arizona?
If you’re driving without uninsured motorist (UM) coverage in Arizona, you’re taking a serious gamble. Despite legal requirements, Arizona ranks among the states with the highest number of uninsured drivers. Even a low-speed crash can lead to thousands in medical costs. Without UM, you’re stuck hoping the other driver has assets, which most don’t. It’s not just extra coverage—it’s peace of mind when someone else fails to take responsibility.
While Arizona law doesn’t force you to carry UM coverage, it could be the smartest part of your entire policy. It’s your safety net when someone else fails to carry theirs.
But if the other driver does carry insurance, though it’s not enough to cover your expenses, that’s where underinsured motorist coverage becomes essential. Let’s look at another case where this type of coverage can make a major difference.
How Underinsured Motorist Coverage Works in Arizona
Underinsured motorist (UIM) coverage helps when the driver who caused your accident has insurance, but not nearly enough to cover the full cost of your injuries.
Arizona’s minimum liability requirement is just $25,000 per person, and in serious accidents, that amount barely scratches the surface. If your medical bills, therapy, and lost income total more than the at-fault driver’s policy limit, UIM coverage on your own policy bridges the gap. Once the at-fault driver’s insurance pays out, your UIM coverage kicks in to cover your damages, up to your selected limit for the wide range of damages.
What Does UIM Coverage Pay For?
UIM coverage pays for the same types of damages as your uninsured coverage, including emergency room visits, surgeries, physical rehab, long-term care, lost wages, and in some cases, pain and suffering. It applies when the other driver is legally liable but carries only minimum coverage or not enough coverage. UIM protects not just you, but also any family members and passengers in your vehicle at the time of the crash.
For example, you’re T-boned driving home from work in Phoenix. The other driver has minimum coverage, but your injuries cost over $85,000. Their insurance covers just $25,000. Your UIM covers the remaining damages up to your policy limits, saving you from legal headaches and financial strain.
Do You Need Underinsured Motorist Coverage, and How Much Is Enough?
Without it, any serious injury could leave you underwater, especially in Arizona, where the minimum liability limit is just $25,000 per person. That barely covers the cost of a single ER visit, let alone surgery, rehab, and time off work. If you’re seriously hurt in a crash and the other driver has only the minimum coverage, you’ll be stuck with the rest of the bill unless your own policy steps in. Many victims don’t realize this until the money runs out and the bills keep coming.
As for how much coverage to carry, match it to your risk. Think about how much income you’d lose if you couldn’t work for three to six months. Consider the cost of trauma care, surgery, and physical therapy. A $100,000 UM/UIM policy is a solid starting point for many drivers, but higher limits can offer better peace of mind. The more coverage you have, the better you can protect yourself and your family from someone else’s lack of responsibility.
But what if that safety net isn’t there? Let’s walk through what could happen if you’re seriously injured and don’t have UM or UIM coverage backing you up.
What Happens If You Don’t Have UM or UIM Coverage?
If you’re hit by a driver with no insurance or not enough, and you don’t carry UM or UIM coverage, the reality is harsh: you’ll likely be stuck paying out of pocket for injuries someone else caused. In Arizona, this scenario plays out more often than most drivers realize.
Victims end up draining their savings, maxing out credit cards, or going into medical debt just to cover treatment. Some try suing the at-fault driver directly, but most uninsured or underinsured drivers don’t have assets worth pursuing. Health insurance might help, but it won’t cover everything, and it doesn’t pay for lost wages or pain and suffering. Without UM/UIM, your options are limited, and your recovery could come with a financial burden you never saw coming.
However, having UI/UM insurance, it’s also worth knowing about the claim process.
How to Claim Uninsured or Underinsured Motorist Coverage in Arizona
If you’ve been hit by a driver with no insurance or underinsured you’ll need to file a UM or UIM claim through your own auto insurance policy. In Arizona, this process isn’t automatic. You have to do some steps:
- Notify your insurance company immediately
Don’t wait and report the accident to your insurer as soon as possible and specify that you intend to file a UM or UIM claim. They’ll still investigate, request medical records, and may even question the severity of your injuries. That’s why documentation is key. - Provide detailed information about the crash
Treat it like any other claim. Share the location, police report, witness names, and a clear account of what happened. - Document everything thoroughly
Collect and keep:- Police report
- Photos of the accident scene and damage
- Witness statements
- Medical records, bills, and proof of treatment
- Pay stubs or letters from your employer showing lost wages
- For UIM claims, exhaust the at-fault driver’s policy first
Generally, you can’t tap into your UIM coverage until the other driver’s liability coverage is used up. This means negotiating or settling with their insurer first. - Stack your coverage if applicable
Arizona law (Arizona Revised Statutes § 20-259.01) allows policy stacking, so if you have multiple UM/UIM policies, you might be able to combine them for greater coverage.
Every insurer handles the claims process a little differently—some make it easier than others. If your own insurer starts delaying, denying, or offering far less than your damages, that’s when it’s time to get legal help because even your own insurance company isn’t always on your side when money’s on the table.
How Our Arizona Injury Lawyers Can Help with UM/UIM Claims
Whether you have uninsured/underinsured motorist coverage or not, our Phoenix car accident lawyers are here to protect your rights and fight for the compensation you deserve. If you’re covered, we’ll handle your claim from start to finish—gathering evidence, dealing with your insurance company, and making sure they pay what you’re owed. If you’re not covered, we explore every possible path to recover damages, from investigating the at-fault driver’s assets to negotiating liens and working with medical providers to reduce your costs.
We’ve seen firsthand how devastating these crashes can be, and we know how to navigate Arizona’s laws and insurance tactics to protect your future. Let us deal with the legal pressure, so you can focus on healing.