Uninsured/Underinsured Motorist Auto Liability Insurance Coverage

March 27, 2006

What is uninsured motorist and underinsured motorist?

Uninsured Motorist means that the person responsible for your injuries is operating a vehicle without auto insurance coverage.  The coverage is a form of insurance that pays for bodily injury that results from an accident with a driver who is legally responsible for the injuries, but has no liability coverage.

If you have purchased uninsured motorist coverage, you will be able to collect from your auto insurance company to recoup your damages. Uninsured motorist bodily injury coverage covers expenses as medical bills, lost wages, injuries sustained in hit-and-run accidents, rehabilitation, funeral expenses, pain and suffering from an accident for you, your passengers while riding in your car.

Underinsured Motorist means that the person responsible for your injuries does not have enough auto insurance coverage to compensate the injured party in full for his or her injuries. The person responsible decided to purchase the minimum policy limits required by law or a lesser limit than the injured party. If you have purchased underinsured motorist coverage, you will be able to collect from your auto insurance company to recoup your damages that exceed the responsible party’s limits.

What auto insurance coverage is required in Arizona?

Under Arizona law, you are only required to purchase liability insurance to be considered “fully covered” under the law.  It is mandatory to carry auto insurance coverage for Bodily Injury & Property Damage.  Arizona laws require that all drivers carry a minimum monetary limit of insurance:

$15,000 for injury or death of 1 person per accident

$30,000 for injury or death of 2 or more persons per accident

$10,000 for property damage per accident

Uninsured motorist and underinsured motorist coverage is optional in Arizona.  Insurance carriers will send a rejection notice with the auto insurance policy for the insured to verify that uninsured motorist and underinsured motorist coverage will not be accepted.

How much uninsured motorist and underinsured motorist coverage should you carry to protect your and your family? 

You can only carry as much as your liability limits but you definitely should not carry less. Because injuries can occur in accidents caused by drunk drivers and careless drivers, and injuries can seriously impact not only a working adult but a child or non-income earning spouse, it is best to carry limits that provide at least $250,000 per person and $500,000 per accident.  The dual coverage limits refer to the maximum amount that will be paid per person and per incident.  Some insurance companies offer uninsured and underinsured motorist coverage in the personal umbrella to provide the insured higher limits of protection.

Why should you carry auto insurance that includes uninsured motorist and underinsured motorist coverage? 

You must protect your interests and your future by making sure that your insurance policy includes protection against drivers who do not carry auto insurance or do not carry enough auto insurance. In the event that you are injured by someone who carries only the minimum auto liability policy required by law or even worse someone who has no auto liability insurance coverage at all, you must protect yourself, your family and your passengers. Estimates are that as many as 20% of the cars on the road are uninsured. A much greater number, as many as 60% is underinsured; do not have adequate insurance coverage to protect you in the event that another driver causes an accident which injures you, your child or someone with you.  “Life Happens” and so do accidents.  Protect yourself, your family and your assets.