Arizona requires that all motor vehicles have insurance coverage. But what if you’re in an accident and the at-fault driver hasn’t abided by this law? What if they do have insurance, but it’s not adequate to cover your damages?
Do you have a plan?
Collisions Involving Uninsured and Underinsured Drivers
Collisions with uninsured and underinsured drivers happen frequently. In these situations, the driver who is insured is the one who loses out.
Uninsured drivers are driving illegally and will face legal consequences as a result of their actions. Underinsured drivers rarely encounter legal problems because they technically have insurance. Still, it’s likely that their inadequate policy limits won’t actually cover the entirety of the costs needed to assist with your medical bills if you are injured in an accident they caused.
Uninsured and underinsured motorist coverage can help.
Unfortunately, the ins and outs of this type of car insurance are often misunderstood. Let’s go over some of the most frequently asked questions concerning uninsured and underinsured motorist coverage, also known as UM and UIM coverage or simply, UM/UIM coverage.
Frequently Asked Questions About UM/UIM Coverage
Q: What Is UM/UIM Coverage?
A: UM/UIM coverage can be purchased as a part of your car insurance plan to cover you if you get into an accident caused by an uninsured or underinsured driver. It covers your medical expenses for bodily injuries, pain and suffering damages, and lost wages.
Q: Does UM/UIM coverage cover you or the uninsured/underinsured driver?
A: This is a common point of confusion. In fact, UM/UIM coverage covers you, the one purchasing the policy. It does not cover uninsured or underinsured drivers. If you cause an accident with any type of driver (uninsured, underinsured, or insured) your liability insurance is what will cover the other driver.
Liability insurance is required for every driver in the state of Arizona. It comes in two forms: bodily injury liability insurance for personal injury coverage and property damage liability insurance for property damage (vehicle damage) coverage.
Q: What is an underinsured driver? Do they have insurance or not?
A: Underinsured drivers do have insurance. But most of the time, their insurance is the bare minimum required. In the state of Arizona, it is just a small amount of liability insurance.
Q: If underinsured drivers do have insurance, why do you need to get coverage for them?
A: Because underinsured motorists don’t have a lot of insurance, it’s highly likely that if they cause an accident and you are injured, your deserved compensation will far surpass their policy limits. Normally, you’d be out of luck. But with underinsured driver insurance, you can make up the difference with your own policy.
Q: If liability coverage is mandatory in Arizona, is UM/UIM coverage mandatory as well?
A: No. In some states, UM/UIM coverage is mandatory, but this isn’t the case in Arizona. You need to speak with your insurance agent if you’d like to make sure you have this form of coverage. Sometimes, it is automatically included in auto insurance plans, but it’s always best to make sure with your agent.
Q: How can some people be on the road without insurance?
A: While it is illegal to drive without insurance, many people do it. If they are caught, they face serious ramifications, including fines and possible impoundment of the car and retraction of their license.
Q: Does UM/UIM coverage cover property damage?
A: No, if an uninsured or underinsured driver causes damage to your vehicle, you’ll need collision insurance. In some states, uninsured motorist property damage coverage (UMPD coverage) exists, but it typically is not offered in Arizona.
For additional answers to questions related to UM/UIM insurance, call or stop into All Arizona Insurance.