Uninsured & Underinsured Motorist Claims

Uninsured and underinsured motorist coverage is insurance you buy to protect yourself from other drivers' gaps. When it applies, you make the claim against your own insurer, which can feel strange and sometimes adversarial. Whether a claim exists depends on the policy you bought, the selections you made, the facts of the crash and the law of the state involved. An uninsured motorist lawyer starts with the declarations page and the policy language, not assumptions.

Uninsured vs. underinsured motorist coverage

The two coverages sound alike, but they answer different problems. Arizona law calls them separate and distinct coverages that apply to different accident situations1.

• Uninsured motorist (UM) coverage applies when the vehicle that caused the injury had no liability policy meeting the state minimum. In Arizona, UM covers damages for bodily injury or death in that situation1.
• Underinsured motorist (UIM) coverage applies when the at-fault driver had insurance, but the total liability limits are less than the injured person's damages. It is meant to cover the difference, up to the UIM limit1.
• Neither is a substitute for proof: Both still depend on showing that another driver was at fault and what your injuries actually cost you.

A driver can carry insurance and still be underinsured. Arizona's minimum liability limits for policies issued or renewed since July 1, 2020, are $25,000 for injury to one person and $50,000 for two or more people3. A serious injury can exceed those amounts quickly.

Situations that can lead to a UM or UIM claim

Arizona requires vehicles driven on its highways to carry liability coverage or an approved alternative4. Some drivers do not, and others carry only the minimum. A UM or UIM claim may arise when:

• The at-fault driver had no liability insurance
• The at-fault driver's insurer denied coverage for the crash
• The at-fault driver's insurer became insolvent and could not pay, which Arizona treats as an uninsured vehicle1
• The at-fault driver's limits were too low for your medical bills, lost income and other losses
• A hit-and-run driver left the scene and was never identified
• You were hurt as a passenger, pedestrian or cyclist and your own policy may extend to you

Hit-and-run cases need care. Leaving the scene of an injury crash is a crime in Arizona5, but that does not mean every hit-and-run is covered. When no physical contact occurred with an unidentified vehicle, Arizona requires the insured to provide corroboration that the vehicle caused the crash, such as other testimony or evidence1. Policy terms add their own conditions. Our pages on pedestrian accidents and motorcycle accidents cover crashes where these questions often come up.

How an underinsured motorist claim unfolds

A UIM claim usually runs alongside the claim against the at-fault driver. The order matters, because each step can affect the next.

• You make a bodily injury claim against the at-fault driver's liability insurer
• That insurer offers or pays its limit, or disputes fault or the value of the injuries
• You give your own insurer written notice that you intend to pursue a UIM claim
• Your insurer evaluates fault, injuries and damages above the other driver's limits
• If you cannot agree, the dispute moves to arbitration or a lawsuit under the policy's terms

Arizona ties these steps to deadlines. To preserve a UIM claim, the injured person must also make a claim with the at-fault driver's insurer or sue that driver within the usual personal injury deadline8. Your policy also sets out your obligations after a loss2. Before signing a release with the at-fault driver's insurer, check whether your policy says anything about settling or about notice to your own insurer.

Arizona's rules for uninsured and underinsured motorist coverage

What Arizona law says, as of October 2026

Offered, not required

Insurers must make UM and UIM available and offer them by written notice, on a form approved by the state insurance director. The named insured decides whether to buy them1.

Limits

If you request it, the insurer must include UM or UIM coverage up to your bodily injury liability limits1.

The declarations page

The declarations page sent to the named insured is the final expression of the decision to buy or reject UM and UIM coverage, and it applies to everyone insured under the policy1.

Some policies are excluded

The offer rules do not apply to umbrella, excess or general commercial liability policies that do not provide primary auto coverage1.

Insurer's right to repayment

An insurer that pays a UM claim may pursue the uninsured driver for reimbursement1.

Other states take a different path. Florida, for example, requires UM coverage in auto policies with bodily injury liability coverage unless a named insured rejects it in writing on an approved form6. Florida's statute also says the coverage cannot be reduced by a setoff against other coverage, including liability insurance6. These differences are one reason a UM/UIM attorney asks first which state's law and which policy apply.

Policy terms that shape a UM or UIM claim

The statute sets the floor. The policy fills in the rest. An auto policy contains definitions and exclusions, which are specific events and circumstances it will not cover2. Terms that often matter include:

• Who counts as an insured: The policy's definitions decide whether relatives, passengers or people using another vehicle are covered.
• Bodily injury versus property damage: Arizona's UM and UIM rules address bodily injury and death1. Damage to your car may fall under collision coverage or separate uninsured motorist property damage coverage, if you bought it, usually with a deductible2.
• Per-person and per-accident limits: These cap what the policy pays, no matter how serious the injuries.
• Exclusions: Certain vehicles, drivers or uses may be excluded, and the exact wording controls2.
• Offsets and reductions: Read any clause that reduces payment by amounts received elsewhere. States treat these differently; Florida's statute bars reducing UM coverage by a setoff against liability insurance6.
• Stacking: Combining coverage from more than one policy or vehicle. Arizona lets insurers limit coverage to one policy selected by the insured when multiple policies bought by one insured apply1.
• Notice and cooperation: The policy sets out your obligations after a loss2, and Arizona law requires written notice of a UM or UIM claim8.
• Dispute procedures: A policy may provide for arbitration, and Arizona's deadline statute refers to arbitration or suit under the contract's terms8.

Arizona's highest court addressed stacking recently. In State Farm v. Balzan, decided July 6, 2026, the Arizona Supreme Court said stacking is allowed unless the policy clearly and expressly prohibits it. It then held that parents who jointly bought several household policies count as "one insured" under the statute, so State Farm could apply its anti-stacking clause. The injured passenger was paid under his own policy and one of his parents' policies, but not the other three7. If more than one policy in your household might apply, the selection rules deserve a close look. If your policy does not explain your right to choose one policy, the insurer must tell you in writing within 30 days after it receives notice of the accident1.

Coverage dispute or bad faith?

In that case, Zilisch v. State Farm, the court said an insurer must immediately conduct an adequate investigation, act reasonably in evaluating the claim and act promptly in paying a legitimate claim. The question is whether the insurer acted unreasonably and knew or was conscious that its conduct was unreasonable10. Arizona's insurance code separately lists unfair claim practices, such as refusing to pay without a reasonable investigation11. That statute gives the state insurance director an administrative remedy and does not by itself create a private right to sue11. A UM/UIM lawyer keeps these questions apart: first what the policy owes, then how the claim was handled.

Who may owe payment after an uninsured driver causes a crash

Your own insurer is only one possible source. Depending on the facts, a review may look at:

• The at-fault driver personally, though collecting from an uninsured driver is often difficult
• The owner of the vehicle, if different from the driver, under the applicable law
• The driver's employer, if the driver was working
• Other liability policies that may cover the at-fault driver or vehicle
• Your own UM or UIM coverage, and possibly other household policies, subject to their terms
• Coverage on the vehicle you occupied, if you were a passenger, including in a rideshare vehicle

Documents that support an uninsured motorist claim

A UM or UIM claim is a contract claim built on crash evidence. These records help:

Records to gather

Your policy

• The declarations page in effect on the crash date
• The full policy, including endorsements
• Any signed UM or UIM selection or rejection form
• Renewal notices and coverage change letters

The crash

• The police report and any hit-and-run report
• Photographs, video and witness contact details
• The other driver's insurance information or denial letter
• Proof of the other driver's policy limits

Injuries and communications

• Medical records, bills and wage-loss records
• Your written notice of the UM or UIM claim, with the date sent
• Letters, emails and claim notes from every insurer

When to talk to an uninsured motorist lawyer

Consider a legal review if:

• The at-fault driver's insurer has offered its limit and your losses are higher
• The other driver had no insurance, or was never found
• Your insurer says you rejected UM or UIM coverage and you do not remember doing so
• More than one policy may apply and the insurer has raised stacking or selection rules
• Your claim has been denied, delayed or valued far below your bills
• Arbitration has been mentioned, or the insurer has sent a deadline notice

A lawyer will compare the policy, the selection forms and the claim file against the facts of the crash. That review can show whether the problem is the coverage itself, the proof, or the way the claim was handled. If you are still sorting out the crash itself, our page on car accidents and the Arizona personal injury overview are good places to start.

Deadlines for uninsured and underinsured motorist claims

Arizona has a specific statute for these claims. For UM, written notice of intent to pursue the claim generally must reach your insurer within three years after the crash. Later dates can apply in some cases, such as when you first learned the other driver was uninsured or that the driver's insurer denied coverage or became insolvent8.

For UIM, written notice is due within three years after the crash. You must also make a claim with the at-fault driver's insurer or sue the driver within the time allowed for that claim, which in Arizona is generally two years, or within the matching period where the crash happened89. A separate three-year period can run from when you knew or should have known the other driver's limits were too low8. If the claim does not settle, you must request arbitration or file suit under the policy's terms within three years after giving notice8. Other states set different rules, and policies may add their own conditions. Starting early leaves room to meet each deadline.

Tell Us Your Story →

What happens after you contact CBW Law

How a claim review works

1. You tell us what happened

   Share the crash date, who was involved, your injuries and what each insurer has said so far.

2. We read the policy

   With your permission, we review the declarations page, the policy language and any selection or rejection forms.

3. We map the deadlines

   We identify which notice and filing deadlines apply and whether any have already been met.

4. We tell you what we found

   We explain whether the facts and the policy appear to support a claim, what is still unclear, and whether we can help.

Coverage turns on the policy you bought and the law that governs it, so that is where we start.

Plain English

Medical, Health & Insurance

Insurance letters and medical records use terms that can be hard to follow. These are some you may see in a UM or UIM claim.

Coverage terms

Uninsured motorist (UM) coverage

Coverage for bodily injury or death caused by a vehicle without the minimum required liability insurance1.

Underinsured motorist (UIM) coverage

Coverage for damages above the at-fault driver's total liability limits, up to your UIM limit1.

Uninsured motorist property damage

Optional coverage some insurers sell for damage to your car caused by an uninsured driver, usually with a deductible2.

Stacking

Combining UM or UIM limits from more than one policy or vehicle for one crash. Arizona allows it unless the policy clearly limits it as the statute permits17.

Policy documents

Declarations page

The front page of the policy, listing the policy term, coverage limits, insured people and vehicles2.

Selection or rejection form

The form an Arizona insurer uses to offer UM and UIM limits, approved by the state insurance director1.

Exclusion

A specific event or circumstance the policy does not cover2.

Claims and disputes

Tortfeasor

The legal term for the person whose wrongful act caused the harm, here the at-fault driver.

Arbitration

A private hearing in which neutral arbitrators decide the dispute, if the policy provides for it8.

Subrogation

An insurer's right, after paying you, to seek repayment from the person responsible1.

Bad faith

Unreasonable handling of a claim that the insurer knew or was conscious was unreasonable, under Arizona case law10.

Medical and billing

Medical payments coverage

Optional auto coverage for medical bills. In Arizona, an insurer that pays more than $5,000 under it may claim a lien for the amount above $5,0001.

Explanation of benefits (EOB)

A health plan statement showing what was billed, paid and owed.

Medical authorization

A signed form allowing an insurer to request your medical records.

Questions

Frequently asked uninsured and underinsured motorist questions

Short answers to questions people ask when the at-fault driver's insurance falls short.

Is uninsured motorist coverage mandatory in Arizona?

No. Arizona insurers must offer UM and UIM coverage in writing, but the named insured decides whether to buy it1. Other states differ. Florida, for example, includes UM coverage in policies with bodily injury liability unless a named insured rejects it in writing6. Your declarations page shows what you selected.

What is the difference between an uninsured and an underinsured driver?

An uninsured driver has no liability policy meeting the state minimum. An underinsured driver has insurance, but the limits are lower than the injured person's damages1. Different coverages apply to each, and Arizona treats them as separate1. Some crashes raise both questions, so it helps to have the other driver's policy details early.

Am I covered if a hit-and-run driver injured me?

Possibly, but not always. Coverage depends on your policy terms and state law. In Arizona, if there was no physical contact with an unidentified vehicle, you must provide corroboration that it caused the crash1. Report the crash to police promptly and keep any witness information.

Can I use UIM coverage after the other driver's insurer pays its limit?

That is the situation UIM is designed for. In Arizona, UIM applies when the at-fault driver's total liability limits are less than your damages, and it covers the difference up to your UIM limit1. Your insurer will still evaluate fault and damages, and notice rules apply8.

Can I stack coverage from several household policies?

It depends on the policy. Arizona allows stacking unless the policy clearly prohibits it, and the law lets insurers limit coverage to one policy selected by the insured when multiple policies bought by one insured apply17. In July 2026, the Arizona Supreme Court held that parents who jointly bought household policies count as one insured for that rule7. The exact policy wording matters.

Does UM coverage pay for damage to my car?

Arizona's UM and UIM statute addresses bodily injury and death1. Damage to your vehicle may be covered by collision coverage or by uninsured motorist property damage coverage, if you bought it, usually with a deductible2. Check your declarations page for what you carry.

My insurer denied my UM claim. Is that bad faith?

Not necessarily. Arizona's Supreme Court has said an insurer may defend a fairly debatable claim, but must investigate, evaluate and pay legitimate claims reasonably and promptly10. A denial may be an honest coverage dispute. A lawyer would look at how the claim was investigated and handled before reaching any view.

How long do I have to bring a UM or UIM claim in Arizona?

Generally, written notice to your insurer is due within three years after the crash, with some later dates for special situations8. For UIM, you must also pursue the at-fault driver within the regular deadline, generally two years89. If the claim does not settle, arbitration or suit generally must follow within three years after notice8.

I don't remember rejecting UM coverage. What now?

Ask your insurer for the signed selection or rejection form and the declarations pages for each policy term. In Arizona, the offer must be made on a director-approved form, and the declarations page is treated as the final expression of the decision1. A lawyer can review whether the paperwork matches the law.

Will CBW Law take my uninsured motorist case?

Not every UM or UIM claim is one we can pursue. We review the policy, the crash, the injuries and the deadlines, then tell you honestly whether we can help and why. If we cannot, we will say so. Contacting us does not create an attorney-client relationship.

Tell Us Your Story

Uninsured and underinsured motorist claims depend on the policy, the coverage you selected, the crash evidence and strict notice deadlines. A disagreement with your insurer is not always bad faith, but it is worth understanding.

If a driver with no insurance or too little insurance injured you or someone in your family, tell us what happened. We will review the policy and the facts with you and give you an honest view of what a claim review involves.

Tell Us Your Story →Call (800) 476-2416

This page is general information about uninsured and underinsured motorist claims. It is not legal or medical advice and does not create an attorney-client relationship. An accident, an injury or a loss does not, by itself, establish that anyone was negligent or legally responsible, and the law differs from state to state. No outcome can be promised in any case.