How Does Arizona Rank In The List Of States With The Most Uninsured Drivers?

It can be frustrating to pay for auto insurance, which is a significant expense that can suddenly increase through no fault of your own. But there are serious risks that come with driving without insurance. You could end up with a damaged vehicle or thousands of dollars in debt if you are in an accident while driving uninsured. It is also a crime to drive without at least the state minimum auto insurance coverage in Arizona. What can be even more frustrating than paying your monthly auto insurance premium is getting into a traffic collision with a driver who doesn’t maintain adequate insurance coverage. A driver with no insurance is considered uninsured, while a driver who has an insurance policy that is insufficient to pay damages stemming from the accident is considered underinsured. Pursuing a personal injury claim after an accident becomes more complicated when the other party is uninsured or underinsured. For expert legal assistance, consult with a Mesa personal injury attorney to navigate these complex situations. Read on to learn more about the uninsured driver rate in Arizona and how it affects an injury claim if you are in an accident with one of them. For your free consultation with an experienced lawyer from our firm, call 602-600-6001. 

What Is The Uninsured Motorist Rate In Arizona?

In Arizona, approximately 12% of motorists are uninsured, compared to the 13% national uninsured motorist rate. While our uninsured motorist rate is only slightly lower than the national average and ranks at 29th in the nation, it is far lower than the uninsured motorist rate in other states. In Washington, D.C., more than a quarter of drivers don’t have car insurance. Completing the top 5, in order, are New Mexico, Mississippi, Tennessee, and Michigan. The states with the fewest uninsured drivers, in order, are Wyoming, Maine, Idaho, Utah, and New Hampshire. All of these states have less than 10% of motorists as uninsured drivers on the road. 

In Arizona, our population skews older, as many retirees choose to live here for the warm and dry weather. This means some of them have less financial stability to afford to maintain car insurance coverage, as they lack options to re-enter the workforce. Nationwide, the cost of living has been on the rise, and many households have been unable to keep pace. For some, it is worth it to risk driving without insurance to keep the lights on and food on the table. But that risk can become extremely costly in multiple ways if the motorist gets in an accident while driving without insurance coverage. 

Uninsured & Underinsured Motorist Coverage 

If you have state minimum car insurance coverage, you are only protected in a limited number of situations that can arise as a motorist. If your vehicle is stolen, damaged by weather conditions, etc., basic auto insurance coverage won’t kick in and reimburse you for your damages. You could be left on the hook if you are at fault for an accident causing damages higher than your policy covers. You also could be left out to dry if you are in an accident with an uninsured or underinsured motorist. If you are in a traffic collision with someone who falls under this category, the only insurance company that may compensate you for your losses is your own. Even if you secure a judgment against the other driver, there is a high likelihood they won’t be able to pay it, especially if they didn’t maintain auto insurance because they couldn’t afford it. 

A driver who maintains uninsured and underinsured motorist coverage is compensated by their insurance company after a collision with an uninsured driver, but there are certain requirements to pursue such a claim under Arizona law. They are set forth by A.R.S. § 12-555. The claimant must provide their insurer notice of their intent to pursue compensation for an uninsured motorist claim. While generally, the statute of limitations for a personal injury claim in Arizona is 2 years from the date of the accident, here, the plaintiff has 3 years to initiate their claim. There are three situations that can extend this limit:

1. 3 years from the date the claimant learned that the other party was uninsured.
2. 3 years from the date the claimant learned coverage was denied by the other party’s insurance.
3. 3 years from the date the claimant learned of the other party’s insurance provider’s insolvency. 

The claimant must have also filed a claim with the other party’s insurance company, if applicable, within that claim’s prescribed statute of limitations to pursue their own insurance provider under this statute. If the claimant is unaware of the other party’s lack of insurance coverage, i.e., hit and run or fraudulent proof of insurance, the time limit doesn’t start running until the claimant learns otherwise. 

If the claimant’s own insurance denies coverage under their uninsured and underinsured motorist policy, they must provide them with notice and information about how to request arbitration. Arbitration involves trying the matter before a neutral third-party, or panel, and allowing them to issue a ruling rather than taking it before a jury. The request for arbitration or lawsuit must be filed in the time limit as described above. The insurer can seek subrogation for uninsured and underinsured motorist policy payments within 2 years of making the payments. 

Damages In An Arizona Accident Claim

The damages one can pursue after an accident with an uninsured or underinsured driver are the same as those that can be sought after an accident with an insured driver. Damages can be reduced to the extent, expressed as a percentage, that the claimant is determined to be at fault for the accident. However, Arizona sets no limit on how at fault a plaintiff can be to qualify to pursue compensation. A claimant should be sure to calculate all the damages for which they seek compensation carefully. This is the claimant’s one shot to receive payment for their losses, such as:

• Lost wages during recovery
• Lost earning potential due to permanent injuries
• Medical expenses to date
• Projected future medical expenses
• Repairs to your vehicle or your vehicle’s market value
• Travel costs for medical appointments
• Loss of companionship or consortium
• Permanent disfigurement or disability
• Temporary disfigurement or disability 
• Pain and suffering
• Wrongful death damages, like loss of financial support and funeral expenses

Accident with an Uninsured Driver? Learn More About Your Options from An Experienced Arizona Injury Attorney. 

Whether or not you maintain uninsured/underinsured motorist coverage, receiving compensation after this type of accident is more complex than a typical traffic collision. Don’t avoid seeking care for your injuries, and counsel for your claim, just because you believe you are out of luck due to the other party’s lack of insurance. A skilled Mesa personal injury lawyer can devise the best legal plan in any type of accident situation. If the statute of limitations has started running, you should be researching your options and consulting with personal injury firms. For Arizona’s leading choice in reliable representation with competitive contingency rates, schedule your free consultation with our firm at 602-600-6001 for more information.