What Is Uninsured Motorist Coverage?
Uninsured motorist (UM) coverage is auto insurance that pays your damages when the at-fault driver has no insurance—or when a hit-and-run driver cannot be identified. Underinsured motorist (UIM) coverage pays when the at-fault driver has insurance, but their policy limits are lower than your damages.
Arizona Law: ARS § 20-259.01
Under ARS § 20-259.01, every auto insurer in Arizona must offer UM/UIM coverage in limits equal to the bodily injury liability limits you purchase. You can waive this coverage in writing, but insurers must offer it. Arizona has a high rate of uninsured drivers—estimates put Arizona’s uninsured motorist rate at 12–15%.
Key features of Arizona UM/UIM coverage:
- Covers bodily injury (not property damage by default—that requires uninsured motorist property damage coverage).
- Your own insurer steps into the shoes of the at-fault driver for purposes of the claim.
- You can stack UM/UIM coverage across multiple vehicles on the same policy in some situations—check your policy.
How It Affects Your Personal Injury Case
If you’re hit by an uninsured driver and you don’t have UM coverage, your only option is to sue the at-fault driver directly—but if they have no insurance, they likely have no collectible assets either. UM coverage fills this gap. UIM coverage matters when, for example, a drunk driver with a $25,000 policy injures you with $150,000 in damages—your UIM policy can cover the gap up to your policy limits.
Example Scenario
Sandra is hit by a driver with no insurance in Mesa. Her medical bills total $45,000. She has $100,000 in UM coverage on her own policy. She files a UM claim with her own insurer, which is required to evaluate it in good faith the same way they would any other claim. If they undervalue it, she has the same bad faith remedies as she would against any insurer.
Frequently Asked Questions
Will filing a UM claim raise my insurance rates in Arizona?
Arizona law does not automatically prohibit rate increases after a UM claim, but many insurers do not surcharge for not-at-fault claims. Review your policy and ask your insurer before filing. Regardless, a UM claim is typically far better than recovering nothing from an uninsured driver.
What if the hit-and-run driver is never found?
Your UM coverage typically covers hit-and-run accidents, but Arizona policies often require that you (or a passenger) make physical contact with the unidentified vehicle, or that there is independent witness evidence of the contact. Check your policy language for specific conditions.
Have questions about UM/UIM coverage after an accident? Call Wood Injury Law at (623) 207-0000 for a free case review.