Driving has become an integral part of our daily lives in Arizona. However, with this privilege comes a great responsibility to ensure the safety of other road users. Regrettably, not all drivers abide by this responsibility, leading to devastating car accidents.

When you are involved in a car crash, you exchange information with the other party and file a claim to recover damages from their insurance company. Keep in mind that Arizona follows a fault-based system when handling personal injury claims.

After an auto accident in Arizona, you can file a personal injury claim with the at-fault party’s insurance company for damages. This compensation covers costs associated with your losses, including medical expenses, lost wages, and property damage.

But what happens when you are involved in an accident with an uninsured or underinsured driver? Will your insurance go up if you file an uninsured motorist claim in Arizona? Does an uninsured motorist’s claim count against me?

Facing significant losses when the liable party doesn’t have adequate auto insurance coverage puts you at risk of covering damages on your own. With the help of a car accident attorney from the experienced, talented, and dedicated legal team at Gerber Injury Law, a solution can be found. Our Arizona lawyers can answer questions many plaintiffs ask after car accidents, including “Will my insurance go up if I get hit by an uninsured driver?” and “Will my insurance go up if I file an uninsured motorist claim?”

At Gerber Injury Law, we are determined to help you get the compensation you deserve after a motor vehicle accident while ensuring your future is protected with the necessary auto coverage. But first, let’s delve into the world of uninsured and underinsured motorist claims in Arizona and their potential impact on insurance premium rates.

Uninsured Motorists vs. Underinsured Motorists

According to the Insurance Information Institute (III), approximately 11.9% of motorists in Arizona are uninsured. This means that roughly one in every 10 drivers you spot on the road is likely uninsured. As alarming as this statistic may seem, it pales compared to percentages in other states like Washington, D.C., and New Mexico, which rank first and second in uninsured motorists, respectively.

Many accident victims believe they can’t pursue an insurance claim for injuries if they are injured by a driver without insurance. This isn’t true. You still have legal options if you are involved in an accident with an uninsured or underinsured driver. You have the same reasons to hire an experienced car accident lawyer in Arizona to help you with your claim as you would if an insured motorist injured you.

It’s still going to be an insurance claim like any other, and your insurance company’s claims adjuster will treat you the same way they’d treat a claimant filing an insurance claim against you. And just so you know, insurance companies hate paying money during claims — to anyone!

In Arizona, uninsured motorist (UM) and underinsured motorist (UIM) policies are optional. UM coverage protects drivers and passengers from bodily injuries they sustain in motor vehicle crashes with drivers without liability coverage. UIM coverage protects drivers and passengers from bodily injuries sustained in wrecks involving drivers with inadequate insurance coverage for injuries.

Uninsured/underinsured motorist insurance in Arizona also covers damage to your vehicle if you are hit by a driver without insurance or with insufficient coverage. Your UM/UIM coverage may also cover medical bills for both you and your passengers.

Some of the reasons why drivers in Arizona opt to drive with little to no auto insurance coverage include:

• They can’t afford it. This is the most common reason drivers may not carry liability insurance, given that Arizona has an average annual auto insurance rate of $758 for minimum coverage and $2,543 for full coverage.
• The consequences don’t faze them. This mostly applies to teenagers and youth who have no point of reference for the consequences of driving uninsured on Arizona roads.
• They assume their insurer will cover it. The driver may believe there’s no need for insurance if the other driver has insurance. Their insurer will cover damages, right? This way of thinking is not only selfish but also poses risks to road users injured in car wrecks.
• They’d rather pay the fine. Some drivers figure the cost of carrying liability insurance is greater than getting caught without insurance. As such, this isn’t the rashness of youth but rather a calculation to save some cash.

It’s important to note that a study by the Insurance Research Council (IRC) revealed that roughly one in seven drivers (14%) in the U.S. were uninsured. If you are involved in an accident with an uninsured driver, consult an experienced car accident attorney in Arizona to discuss your legal options. They will advise whether your insurance will go up if you file an uninsured motorist claim in Arizona.

Does an Uninsured Policy Cover Arizona Hit-And-Run Accidents?

Yes. If a driver hits your car and flees the accident scene, you can file a claim against your auto insurance policy for damages. However, this is only possible if you have optional UM/UIM coverage. You may also file a claim if you have collision or comprehensive coverage that pays for medical bills and property damage in a hit-and-run accident.

Will My Insurance Go Up if I Get Hit by an Uninsured Driver in Arizona?

At Gerber Injury Law, accident victims often ask us what happens if they file an uninsured or underinsured motorist insurance claim in Arizona. They may wonder, “Will my insurance go up if I get hit by an uninsured driver in Arizona?” It’s typical for injured victims to worry that if they pursue a claim with their own insurance provider, their insurance premiums may increase.

The good news for drivers is that Arizona law prohibits insurance companies from raising insurance rates after a motor vehicle accident in which you don’t share any blame. Your insurance provider can’t raise your premiums if you aren’t at fault.

Arizona Revised Statutes Title 20. Insurance § 20-263 states, “No insurer shall increase the motor vehicle insurance premium of an insured as a result of an accident not caused or significantly contributed to by the actions of the insured.”

Arizona statutes also require any insurance company that decides to increase a policyholder’s premium after an accident to notify them why they opted for it. So, if your premiums go up, your insurer must point out a valid reason, such as a speeding ticket or a DUI charge.

If the insurance company raises your premium in violation of § 20-263, the carrier can face a civil penalty of up to $300. The insurer may also have to refund the amount attributable to the premium increase.

So, if you aren’t at fault for a car accident in Arizona, your insurance company cannot raise your premiums after you file an uninsured accident claim. It is illegal.

Will an Underinsured Claim Raise My Rates?

As with uninsured claims, your insurance carrier cannot raise your premiums when you file a claim after an accident with an underinsured driver. Your insurer must not punish you by increasing your rates if you didn’t cause the accident. This begs the question, “What is the use of paying for optional UIM coverage if you will be penalized for supplemental insurance you’ve paid for?”

Insurance companies in Arizona must also not cancel or refuse to renew your auto insurance policy if you file a UIM or UM claim after an accident caused by another driver.

What if You Are at Fault and the Other Driver Is Uninsured?

If you are involved in an accident with an uninsured driver and are deemed to be at fault, your insurance premium rates will likely increase after you make a claim under your policy. Why? Insurance carriers in Arizona consider at-fault auto claims indicators of higher risk. It is also important to note that the other driver’s uninsured status isn’t the only factor that impacts this decision.

Arizona Laws on UM and UIM Claims and Insurance

In Arizona, drivers must carry a minimum liability coverage of 25/50/15 to operate motor vehicles on state roads, including motorcycles and golf carts. This minimum liability coverage represents:

• $25,000 per person sustaining bodily injury or wrongful death in a crash,
• $50,000 for two or more individuals sustaining bodily injury or death in a wreck, and
• $15,000 for property damage.

These minimum coverage limits took effect on July 1, 2020, and all Arizona drivers must maintain these limits to operate their vehicles in the state.

Motorists who don’t purchase Arizona’s minimum liability coverage are considered uninsured drivers. They risk facing harsh penalties if they are caught operating motor vehicles, including:

First Offense

Failure to provide valid insurance for the first time may result in a $500 fine. Arizona will suspend one’s driver’s license, license plates, and registration for three months. In addition, the driver will have to pay a $25 fee to get the license plate and registration back and a $10 fee to reinstate their license. The accused driver may also have to ask their insurer to file an SR-22 certificate for two years, which can be quite costly.

Second Offense

If a driver cannot provide valid proof of auto insurance for the second time in three years of a previous citation, they risk facing a $750 fine. The driver’s license plates, registration, and license will be suspended for six months. The driver will also have to pay fees similar to those for the first offense and carry an SR-22 certificate for two years.

Third and Subsequent Offenses

Drivers who fail to show valid proof of auto insurance for the third or subsequent offense within three years of the previous two violations risk a $1,000 fine. In addition, the driver will lose their license, license plates, and registration for a year. The driver must also pay the $10 and $25 fees mentioned above and file an SR-22 certificate.

Statute of Limitations for Uninsured and Underinsured Motorist Claims in Arizona

If you are filing a UM/UIM claim, you should know that Arizona has a deadline, also known as a statute of limitations, for such claims. As a plaintiff, you have three years from the date of the accident to file your car accident claim.

For uninsured claims, you must provide the insurance claim in writing to your carrier within three years after the earliest of the following:

• The date you knew the other driver was uninsured.
• The date you knew or should have known the accused’s carrier denied that coverage.
• The date you knew or should have known the accused’s insurer was insolvent.

For UIM claims, you must file a claim in writing within three years of the date you knew or should have known about the other driver’s inadequate liability insurance.

If you cannot reach a settlement with your insurance company, you can request arbitration or file a lawsuit as per the terms of your contract within three years after providing a written notice of your UM/UIM claim.

Call Gerber Injury Law Today for a Free Consultation!

As a policyholder in Arizona, you are protected by your UM/UIM coverage and state laws that prevent your carrier from unfairly hiking your premiums, canceling your policy, or refusing to renew it after an accident that wasn’t your fault.

If you are facing difficulties with your UM/UIM claim or need help dealing with your insurance company, contact Gerber Injury Law today. Our experienced car accident attorneys are here to help. Don’t face the complicated process of pursuing uninsured claims alone.

Call 623-486-8300 today to schedule your free consultation and learn how we can help. You can also check out our case results to see how we’ve helped people with similar cases to yours.