Arizona has one of the highest uninsured motorist rates in the country — roughly 1 in 5 Arizona drivers carries no insurance, per the Insurance Research Council. Of the drivers who do carry coverage, the state minimum (25/50/15) is often a fraction of what a serious injury costs. When the at-fault driver can’t pay, your own uninsured motorist (UM) or underinsured motorist (UIM) coverage becomes the source of recovery. Wood Injury Law has handled UM/UIM claims across Maricopa, Pima, Pinal, Yavapai, and Mohave counties, including stacking claims that compound coverage across multiple vehicles on the same policy.

What UM and UIM Coverage Actually Cover in Arizona

Under A.R.S. § 20-259.01, every Arizona auto insurance policy must offer UM/UIM coverage, though the insured can decline in writing. The two coverages serve different purposes:

• Uninsured Motorist (UM): Pays your damages when the at-fault driver had no insurance at all, was driving stolen, or hit-and-run.
• Underinsured Motorist (UIM): Pays the difference when the at-fault driver had insurance but their policy limits don’t cover your full damages.

Both coverages compensate you for medical bills, lost wages, pain and suffering, and other damages — the same categories you’d recover against the at-fault driver, just paid by your own insurer instead.

How “Stacking” Works in Arizona

Arizona allows inter-policy stacking and intra-policy stacking of UM/UIM coverage. The practical implications are large:

• Intra-policy stacking: If you have multiple vehicles on a single policy each with UM/UIM, those limits stack. Three vehicles each with $50,000 UM = $150,000 available.
• Inter-policy stacking: If you live in a household with multiple policies (your policy + a parent’s policy, or your policy + a spouse’s), coverage from each policy can apply to the same claim under defined conditions.
• Stacking across resident relatives: A child living at home may be able to stack their parents’ UM/UIM coverage on top of their own under A.R.S. § 20-259.01.

Insurance companies do not volunteer this. They typically apply only the most obvious single policy. We pull every household policy on file, identify every applicable layer, and demand they all pay.

When You Need a UM/UIM Lawyer

UM/UIM claims look like ordinary insurance claims — until they aren’t. Common scenarios where a lawyer pays for themselves many times over:

• Hit-and-run crash where the other driver was never identified
• At-fault driver carried only state-minimum $25,000 and your medical bills exceed that
• Your own insurer denies UM coverage claiming you weren’t actually injured by an “uninsured” driver
• Multiple injured parties competing for one policy’s limits
• Insurer offers a lowball settlement and pressures you to sign a release
• You suspect additional household policies should apply but the insurer says no

Bad Faith — When Your Own Insurer Won’t Pay

Arizona recognizes a tort of insurance bad faith. When your own insurance company unreasonably denies, delays, or underpays a valid UM/UIM claim, you can sue for the full amount owed plus punitive damages and attorney’s fees. The Arizona Supreme Court established this in Noble v. National American Life Insurance Co., and subsequent cases including Zilisch v. State Farm set the standard for what constitutes bad faith. Insurers know the law. They also know most claimants don’t pursue it. We do.

What to Do Immediately After an Uninsured Driver Hits You

1. Call 911 and get the police report. The report establishes the other driver had no valid insurance or fled the scene.
2. Get medical attention. Even minor symptoms should be documented immediately.
3. Photograph the scene, vehicles, and any visible injuries. If hit-and-run, photograph any partial license plate or describe the vehicle.
4. Notify your insurance company promptly. Most policies require notice within a defined window (often 30 days for hit-and-run claims).
5. Do not give a recorded statement before talking to a lawyer. Your own insurer is now adverse to you on the UM/UIM claim.
6. Call Wood Injury Law before signing anything. Initial UM/UIM offers from your own carrier are routinely 20-40% of case value.

Arizona Statute of Limitations on UM/UIM Claims

UM/UIM claims in Arizona are governed by the underlying insurance contract — typically subject to a two-year written-contract limitations period from the date the claim arose, though some policies attempt to shorten this. Bad-faith claims are subject to A.R.S. § 12-542‘s two-year tort limit. Don’t rely on the policy language alone — call us to confirm the actual deadline that applies to your claim.

Frequently Asked Questions

What if I was hit by an uninsured driver but only have state-minimum coverage?

Your UM coverage equals whatever limits you elected on your own policy. If you carry $25,000 UM, that’s the maximum from your own insurer. If multiple vehicles are on the policy, those limits stack. If a resident relative has their own policy, that may also apply. We pull every applicable layer.

Will making a UM claim raise my insurance rates?

UM/UIM claims for not-at-fault crashes generally should not raise your rates — they are not the same as an at-fault claim. If your carrier attempts to raise rates anyway, that itself can be evidence of bad faith. We see this regularly.

Can I sue my own insurance company if they refuse to pay?

Yes. Arizona recognizes insurance bad faith as a tort. When your carrier unreasonably denies or underpays a valid UM/UIM claim, you can sue for the underlying claim amount plus consequential damages, punitive damages, and attorney’s fees.

What if my UM/UIM coverage was rejected when I bought the policy?

Arizona law requires UM/UIM rejection to be in writing and explicit. If the insurer can’t produce a signed waiver, the rejection may be invalid and coverage may apply by operation of law. We routinely check this — many policies don’t have a valid rejection on file.

How long do UM/UIM cases take?

Most resolve in 4 to 12 months once medical treatment is complete. Cases involving denied coverage, bad-faith claims, or multiple layers of stacked policies can take longer — but typically result in larger settlements because of the complexity and the bad-faith exposure on the insurer.

What does it cost to hire a UM/UIM lawyer?

Nothing upfront. We work on contingency. You pay nothing unless we recover money for you. Initial consultation is free.

Talk to an Arizona UM/UIM Lawyer Today

Wood Injury Law handles uninsured and underinsured motorist claims across all 15 Arizona counties. Free consultation, no fee unless we recover money. Call (480) 576-6147 24 hours a day or send a message below.

Disclaimer: Past results do not guarantee future outcomes. Settlement amounts vary based on injury severity, applicable coverage, fault, and venue. Hiring a lawyer is an important decision and should not be based solely on advertising.