Driving in Phoenix is more than just a way to get from Tempe to downtown or across the city to catch a sunset hike. For many of us, our cars are our lifelines. But as the city grows, so does the risk that you’ll end up sharing the road with drivers who simply aren’t covered.
Understanding uninsured and underinsured motorist coverage is essential if you want to protect yourself and your family from the financial fallout of an accident.
The Realities of Uninsured Drivers in Arizona
Here’s a fact that might surprise you: Arizona consistently ranks among the worst states for uninsured drivers. Roughly 12% of motorists here have no insurance at all, according to recent estimates. In a sprawling, car-dependent city like Phoenix, the chance of being involved in a crash with someone who can’t pay is high. The state’s desert highways and city avenues carry plenty of risk, even if you obey every rule.
What Sets Uninsured and Underinsured Coverage Apart?
Uninsured motorist (UM) coverage steps in when the other driver has no insurance, whereas underinsured motorist (UIM) coverage applies when the other driver’s insurance isn’t enough to cover your costs. Both types of coverage exist for one reason: not everyone on the road is prepared for an emergency. This insurance ensures that their lack of preparation shouldn’t drain your savings.
Examples of UM and UIM in Action
Imagine this: you’re driving along 7th Avenue when a car sideswipes you. The driver apologizes, but he doesn’t have insurance. In that moment, your UM coverage becomes your safety net.
Now picture a similar accident, but this time the other driver has Arizona’s bare-minimum liability limits. Your medical bills and lost wages quickly exceed their coverage, leaving you with a pile of unpaid expenses. That’s where UIM coverage can step in to bridge the gap.
The Full Reach of Uninsured Motorist Coverage
People often misunderstand what UM coverage can actually do. In Arizona, it isn’t just about medical bills (though it absolutely covers those). UM coverage can pay for lost wages if you’re forced to miss work. It can also cover costs related to pain and suffering if the accident disrupts your life. If you’re injured in a hit-and-run, you may be able to use UM coverage to cover your losses.
It’s important to note that not all UM policies include property damage. Make sure to check the details of your policy to see if car repairs are covered. The core function of UM coverage is to help you recover, both physically and financially, without having to chase down someone who simply can’t pay.
Does Arizona Require Liability Coverage for All Drivers?
Liability insurance is the legal minimum for all drivers in Arizona, but it is often misunderstood. This coverage pays for injuries and property damage you cause to someone else in a crash. As of 2024, Arizona law requires drivers to carry car insurance that covers (at a minimum):
- $25,000 for injuries to one person
- $50,000 per accident
- $15,000 for property damage
Your Liability Coverage Compensates the Other Driver
But here’s the catch: liability insurance protects other drivers, not you. If you’re the one left with medical bills or a totaled car after being hit by someone with no (or not enough) insurance, liability coverage isn’t going to help. That’s why so many Phoenix drivers end up wishing they had taken the time to review and expand their policies before trouble strikes.
Arizona’s Insurance Laws and Their Limits
Every Arizona driver is supposed to carry liability insurance, but that doesn’t mean every driver does. According to a recent IRC Study, roughly one in seven motorists (15.4%) are uninsured. Even with penalties and the risk of having their license suspended, many drivers in Phoenix are uninsured.
Economic hardship, lack of awareness, and sometimes just plain risk-taking lead people to take their chances. Some cancel their policies right after registering their car. Others let their coverage lapse after a job loss or financial setback. The result is a dangerous gap in protection.
Consequences of Lapsed Coverage
After a crash, uninsured drivers may be legally responsible for damages and ordered to pay. But if they don’t have any money or assets to help cover the damages, you might never see a penny. That’s why even careful, law-abiding Phoenix residents can wind up in tough spots when other drivers don’t play by the rules.
Is Uninsured and Underinsured Motorist Coverage Required?
You are not legally required to carry UM or UIM coverage in Arizona, but insurance companies must offer it. If you choose to decline, you must do so in writing. What many drivers don’t realize is that skipping this coverage is a risky choice. In a city like Phoenix, accidents involving an uninsured driver is a matter of “when” not “if.”
Most insurance agents in Phoenix recommend getting UM and UIM coverage equal to your liability policy. It’s often one of the most affordable ways to protect yourself, especially considering the alternative could be devastating.
What Happens If You Skip UM or UIM Coverage?
Opting out of UM or UIM coverage is a gamble that can backfire dramatically. Say you’re hit by a driver with no insurance, or someone carrying only the legal minimum. Without UM or UIM, you might be left paying your own medical bills and car repairs, even though you did nothing wrong.
Suing the at-fault driver is always an option, but if they have no assets, it’s a hollow victory. Health insurance can offset some expenses, but won’t cover other accident-related costs like lost wages. For many Phoenix families, these costs are enough to disrupt budgets for years.
Steps to Take After an Accident with an Uninsured Motorist
Accidents are overwhelming, but if you find yourself hit by an uninsured driver, staying calm and focused will serve you well.
1. Safety First
First, make sure everyone is safe and call the police. Always get a police report, even if the other driver begs you not to involve the authorities. This report is essential for any insurance claim and can save you headaches later.
2. Collect Information at the Scene
Collect as much information as possible: names, contact details, license plate numbers, and photographs of the scene. Report the incident to your insurance company promptly. If you have UM or UIM coverage, contact your insurance company.
3. Contact a Lawyer ASAP
Contact an expert car accident injury lawyer while you’re still at the scene, if possible. It will be better for your case if you can get a lawyer involved early. At Brad Johnson Injury Law, our team is available 24/7. We’re committed to helping you meet with a lawyer within 2 hours of your call if we believe we can help your case.
Benefits of Hiring an Experienced Car Accident Lawyer
A vehicle accident lawyer like Brad Johnson will advocate for you and make sure the right information is recorded. This is necessary to make sure your claim is submitted correctly and paid out quickly. Navigating insurance claims and Arizona’s legal system can be overwhelming, and you don’t have to deal with it on your own.
Should You Ever Accept Cash from an Uninsured Driver?
It can be tempting when the at-fault driver offers you cash on the spot, hoping you’ll let the accident slide. But taking cash in Phoenix, or anywhere in Arizona, is almost always a bad idea. Damage to your car and injuries might seem minor at first, but they can turn out to be far more expensive after you’ve had everything evaluated by professionals.
Accepting Cash Could Waive Your Right to More Compensation
Accepting cash can also complicate or even void your insurance claim. Insurers expect you to report all accidents. If you don’t, you may find yourself stuck with the bill, or worse, in legal trouble for failing to report the incident. Always follow proper procedure, like filing a police report, and starting a claim with your insurance company.
Protect Yourself Before You Need Protection
Peace of mind is priceless, and a few extra dollars a month can make all the difference if the unthinkable happens. Talk to your insurance agent, ask questions, and don’t just accept the bare minimum. In Phoenix, protecting yourself means planning for the mistakes of others, not just your own.
Contact Brad Johnson Injury Law
If you’re in a car accident with an uninsured or underinsured driver, contact the car accident legal experts at Brad Johnson Injury Law. We are committed to helping you recover the compensation you deserve with a lower fee than other Phoenix personal injury firms.
Call us to get a free case evaluation, available 24/7.