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You did everything right, and someone else caused the crash, but then you learn the at-fault driver has no insurance, or nowhere near enough to cover your injuries. It is a frustrating and surprisingly common situation in Arizona, where a large share of drivers are uninsured or carry only minimum coverage. The good news is that uninsured and underinsured motorist coverage exists precisely for this moment, and understanding how it works can be the difference between a full recovery and being left with the bill.
This guide explains what uninsured and underinsured motorist coverage is, who it protects, how a claim works in Arizona, and why these claims can be more contentious than they first appear.
What Uninsured and Underinsured Motorist Coverage Is
Uninsured motorist coverage, often called UM, pays for your injuries when the at-fault driver has no liability insurance, or when a hit-and-run driver cannot be identified. Underinsured motorist coverage, or UIM, applies when the at-fault driver does have insurance, but the limits are too low to cover the full extent of your damages. In that situation, UIM can make up the difference between the at-fault driver’s limits and what your claim is actually worth, up to your own coverage limits.
Arizona’s Coverage Requirements
Under A.R.S. 20-259.01, every insurer that writes auto liability policies in Arizona must offer both uninsured and underinsured motorist coverage to the policyholder. The coverage is not strictly mandatory, but it cannot be removed from your policy unless you reject it in writing. That means many drivers have this valuable protection without realizing it. If you were injured by an uninsured or underinsured driver, one of the first things an attorney will do is review your policy, and the policies of resident family members, to find every layer of coverage that may apply.
Who UM and UIM Coverage Protects
These coverages typically protect more than just the named policyholder. Depending on the policy, they can extend to your spouse and resident relatives, passengers in your vehicle, and you as a pedestrian or cyclist if you are struck by an uninsured driver. Because coverage can reach across household policies, the total protection available is often greater than people assume, which is why a careful review matters.
Why These Claims Can Be Difficult
There is an uncomfortable truth about UM and UIM claims: you are making a claim against your own insurance company. Even though you have paid your premiums, the insurer that handles your UM claim is financially adverse to you, and it may dispute who was at fault, question the severity of your injuries, or argue that your damages are worth less than you claim. Some policies also contain short contractual deadlines for demanding arbitration that are separate from, and shorter than, the legal filing deadline. Treating a UM claim as a friendly formality is a mistake that can cost you.
How Fault and Deadlines Work in Arizona
Arizona follows a pure comparative negligence rule, so even if you were partly at fault, you can still recover, with your recovery reduced by your percentage of fault. For the underlying injury, Arizona generally gives you two years from the date of the crash to bring a claim under A.R.S. 12-542. Keep in mind that your insurance policy may impose its own, shorter deadline for starting a UM or UIM claim, so it is important to review the policy language early rather than assuming you have the full two years.
Common Situations Where UM and UIM Apply
These coverages come into play more often than most drivers expect. Uninsured motorist coverage applies when the at-fault driver has no insurance at all, or when a hit-and-run driver flees and cannot be identified. Underinsured motorist coverage applies when the at-fault driver carries only minimum limits that are quickly exhausted by a serious injury, leaving a gap between what their policy pays and what your claim is worth. UM and UIM can also apply when you are injured as a passenger, or even as a pedestrian or cyclist struck by an uninsured driver, depending on your policy. Given how many Arizona drivers carry little or no coverage, this protection is often the difference between a full recovery and an unpaid bill.
How a UM or UIM Claim Works
A UM or UIM claim generally begins with notifying your insurer and establishing that the other driver was at fault and either uninsured or underinsured. From there, you document your injuries and damages just as you would in any injury claim, and the insurer evaluates the claim, often far more conservatively than you would hope. If you cannot reach a fair agreement, many policies require the dispute to go to arbitration rather than a courtroom, under rules and deadlines set by the policy itself. Because your own insurer is on the other side of the table, having someone build and present the claim on your behalf helps level a playing field that is otherwise tilted against you.
Reviewing Your Policy Is a Critical First Step
Many people have no idea how much uninsured or underinsured coverage they carry until they need it. Because Arizona requires insurers to offer these coverages and only allows them to be removed by a written rejection, a large number of drivers have meaningful protection they have forgotten about. Reviewing the full policy, and the policies of relatives who live with you, can reveal additional layers of coverage and, in some cases, the ability to combine limits. This review is one of the first things to do after a crash with an uninsured or underinsured driver, because it defines the real ceiling on what you can recover.
What Not to Do in a UM or UIM Claim
- Do not assume your own insurer is on your side simply because you pay the premiums
- Do not give a recorded statement or sign a release before understanding your policy and your claim’s value
- Do not accept the first offer, which often does not reflect the full extent of your injuries
- Do not miss a policy deadline for demanding arbitration, which can be shorter than the legal filing deadline
- Do not settle the claim against the at-fault driver without checking whether it affects your UIM rights
State-Specific Notes
The requirement to offer UM and UIM coverage and the two-year injury deadline above are Arizona rules. Milano Legal Group also serves California, Florida, and Texas, each of which handles uninsured and underinsured motorist coverage differently, with its own rules on stacking, waivers, and deadlines. Because the details vary so much, confirming how your specific policy and state law interact is one of the most valuable early steps you can take.
How Milano Legal Group Can Help
UM and UIM claims sit at the intersection of contract law, injury law, and insurance practice, and unrepresented claimants often recover far less than their claims are worth. We review every policy that may apply, establish the value of your injuries, handle the negotiation or arbitration with your insurer, and protect you from tactics designed to minimize your payout. Learn more about how we handle serious injury cases on our motorcycle accidents page.
We work on a contingency basis, so there are no fees unless we win. Contact Milano Legal Group today at 855-545-1777 for a free, no-obligation case evaluation. Serving clients throughout Arizona, California, Florida, and Texas.
