Arizona's uninsured motorist coverage protects you when the other driver has no insurance

Arizona law requires your auto insurance policy to include uninsured motorist (UM) coverage unless you actively reject it in writing. This coverage pays for your medical bills, lost wages, and pain and suffering when another driver causes a crash but carries no insurance. The law applies to bodily injury only — property damage to your car is a separate coverage called uninsured motorist property damage (UMPD), which is optional.

The minimum UM limit in Arizona is the same as your liability limit. If you carry $25,000 in liability coverage, your UM coverage must also be $25,000 per person and $50,000 per accident. You can buy higher limits, and many people do, because the other driver's lack of insurance does not change how much your injuries cost to treat.

Your own insurance company pays the UM claim, not the uninsured driver. This means you file a claim with your own insurer, and they investigate whether the other driver was at fault. If liability is clear, the process moves faster. If liability is disputed, you may need a lawyer to negotiate or file a lawsuit against the other driver while your insurance company covers the costs.

Key Takeaways

  • Arizona requires uninsured motorist coverage on every auto policy unless you sign a written rejection form.
  • Your own insurance pays UM claims, not the uninsured driver, so you file with your own company after a crash.
  • UM coverage includes medical expenses, lost income, and pain and suffering, but not property damage to your vehicle.
  • The minimum UM limit matches your liability limit, but you can purchase higher coverage if you want more protection.
  • If the uninsured driver disputes fault, you may need a lawyer to pursue the claim or file a lawsuit.

When UM coverage pays and when it does not

UM coverage pays when another driver causes a crash and has no insurance at all. "No insurance" means the other driver carried zero coverage — not that their policy lapsed, not that they had the wrong type of coverage. If the other driver had liability insurance but it was not enough to cover your damages, that is a different situation called underinsured motorist (UIM) coverage, which is separate.

The crash must be the other driver's fault for UM to pay. If you were equally at fault or more at fault, Arizona's comparative fault rules explore. If you were 20% at fault and the other driver was 80% at fault, your UM payment is reduced by 20%. If you were 50% or more at fault, UM does not pay at all in Arizona.

UM does not cover damage to your car itself. If you want coverage for that, you need collision or comprehensive coverage. UM covers only your bodily injury — medical treatment, rehabilitation, lost wages while you recover, and compensation for pain and suffering.

How to file a UM claim with your insurance company

Report the crash to your insurance company as soon as possible, even if you are not sure whether the other driver has insurance. Provide the police report number, the other driver's name and contact information, and the names of any witnesses. Your insurer will investigate whether the other driver carried insurance.

Gather medical records and bills from any treatment you received. Keep receipts for medications, travel to appointments, and any other costs related to your injury. If you missed work, get a letter from your employer stating the dates and your hourly rate or salary. These documents form the basis of your claim.

Your insurance company will assign a claims adjuster to your case. The adjuster will contact you, review the police report, and may request additional information. If liability is clear — the other driver ran a red light, for example — the process usually moves to settlement discussions within weeks. If liability is unclear, the adjuster may ask for a recorded statement or hire an investigator.

Disputes over fault and when you need a lawyer

If your insurance company agrees the other driver was at fault, they will make you a settlement offer. You can accept it, reject it and negotiate, or hire a lawyer to negotiate on your behalf. Many people hire a lawyer only after their insurer's first offer seems too low.

If your insurance company denies the claim because they believe you were at fault, you have the right to dispute that decision. You can request that the company reconsider, provide additional evidence, or file a complaint with the Arizona Department of Insurance. A lawyer can help you understand whether the denial is reasonable or whether you have grounds to challenge it.

If you and the other driver disagree about fault and cannot settle, you can file a lawsuit against the uninsured driver. Your own insurance company will typically cover the legal costs under your UM coverage. A lawyer can advise you on whether a lawsuit makes sense — for example, whether the uninsured driver has assets or income that could be used to pay a judgment.

Underinsured motorist coverage as an alternative

Underinsured motorist (UIM) coverage is optional in Arizona and covers situations where the other driver has insurance but not enough to pay your full damages. If the other driver carries $15,000 in liability coverage and your damages are $50,000, UIM bridges the gap up to your UIM limit.

Many insurance agents recommend buying UIM coverage at the same limit as your UM coverage. The cost is usually modest — often $20 to $50 per year depending on your age, driving record, and location. If you are in a high-traffic area or drive frequently, UIM coverage can be worth the expense.

UM and UIM work together. If you are hit by an uninsured driver, UM pays. If you are hit by an underinsured driver, UIM pays the difference between their liability limit and your damages. You cannot collect from both for the same accident.

Rejecting UM coverage and the consequences

Arizona allows you to reject UM coverage, but your insurance company must obtain your written consent. The rejection form must be signed by you and clearly state that you understand you are giving up this protection. A verbal rejection or a form signed by someone other than the policyholder is not valid.

If you reject UM coverage and are hit by an uninsured driver, your own insurance will not pay your medical bills or other damages. You would have to file a lawsuit against the uninsured driver directly and try to collect from them personally. Most uninsured drivers have few assets, so a judgment against them may be uncollectable.

Some people reject UM coverage to lower their premium, but the savings are usually small compared to the risk. If you are considering rejection, ask your agent for the exact dollar amount you would save and think carefully about whether that amount is worth the exposure.

Stacking and multiple vehicles

If you own more than one vehicle and each has UM coverage, Arizona allows you to "stack" the limits under certain circumstances. Stacking means you can combine the UM limits from multiple policies to increase the total amount available to you. For example, if you own two cars with $25,000 UM limits each, stacking could allow you to recover up to $50,000.

Stacking is not automatic — you must request it when you purchase your policies or amend them. Your insurance agent can explain whether stacking is available under your specific policies and what it costs. Some insurers charge a small additional premium for the right to stack.

If you are injured as a passenger in someone else's vehicle, you may also be able to claim UM coverage under both your own policy and the vehicle owner's policy, depending on the circumstances and your insurer's rules. This is a complex area, and a lawyer can help you understand your options if you are injured as a passenger.

Frequently Asked Questions

Does UM coverage explore if I am hit by a hit-and-run driver?

Yes. A hit-and-run driver is treated as an uninsured motorist under Arizona law. You must report the crash to police and provide your insurance company with the police report number. If you cannot identify the other vehicle, your insurer may require you to prove you made a reasonable effort to locate the driver before paying the claim.

What if the other driver's insurance company says they are uninsured?

Your insurance company will investigate independently. They may contact the other driver, check state insurance records, or request documents from the other driver's insurer. If the other driver claims they have no insurance, that is not enough — your insurer must verify it before denying a UM claim.

Can I sue the uninsured driver directly instead of using UM coverage?

Yes, you can file a lawsuit against the uninsured driver in civil court. However, most uninsured drivers have no money or assets to pay a judgment, so you may win the case and still collect nothing. Using UM coverage is usually faster and more reliable because your own insurance company pays regardless of the other driver's financial situation.

Does UM coverage explore if I am partially at fault?

Yes, but your payment is reduced by your percentage of fault. If you are 30% at fault and your damages are $10,000, UM pays $7,000. If you are 50% or more at fault, UM does not pay in Arizona.

What happens if my UM limit is lower than my medical bills?

Your UM payment is capped at your policy limit. If your bills exceed your limit, you can file a lawsuit against the uninsured driver for the difference, but again, collecting from an uninsured driver is difficult. This is why many people buy UM limits higher than their liability limits.