Uninsured Motorist Coverage
Another part of the Arizona personal auto insurance policy is uninsured motorist (UM) coverage. The purpose of this
coverage is to protect you, our insured, from financially irresponsible drivers who have not purchased automobile
liability coverage. This coverage generally includes underinsured motorist coverage as well which simply makes it every
driver on the road has adequate limits of liability to protect you should you have an accident with a driver who has
inadequate limits of liability.
How It Works in Real Life
By way of example, suppose that you carry limits of $100,000 per person/ $300,000 per accident and $50,000 property damage
(100/300/50) and you have an accident where you are rear-ended by a driver with minimum limits of liability say $15,000 per
person/$30,000 per accident and $5,000 property damage. You are seriously injured and file a lawsuit which brings back a verdict
in your favor of $75,000. This verdict is clearly in excess of the coverage that the other driver's insurance will pay. The
math on this claim goes: $15,000 from other party's insurance company and they are considered to be "out of limits". There is no
more coverage, that insurance company is done with the claim. The problem now is that you are short $60,000. You have 2
choices 1) Pursue the other party directly for the remainder 2) File a claim under your own policy for uninsured/underinsured
motorist coverage.
In my opinion, the second scenario has a much higher chance of success. If someone has very low limits of liability you are
more than likely riding a very slow horse chasing down the other party on a personal level. Also, you may not want to go
through the time, expense and aggravation to pursue this path with no certainty that there are assets to fulfill the obligation.
The clearer path is to pursue a claim under your own uninsured/underinsured motorist coverage. Your own policy would pay the
additional $60,000 without the time, expense and aggravation associated with pursuing the other party directly. In this case, you
are going to the known "deep pockets" of your insurance company.
An Additional Benefit to Maintaining Higher Limits of Auto Liability
There is another benefit to having high limits of liability on your Arizona personal auto insurance policy. If
the policy is properly constructed you will have the same limits of liability for your uninsured motorist coverage that
you do for your own personal liability. Uninsured Motorist Coverage can never be greater than your own liability.
By maintaining higher limits, you are making it that everybody on the road through your own actions is carrying the same
limits of liability that you are if you have an accident where you or your family is seriously injured.
In this case, the best offense is a great defense. By having higher liability limits, you not only protect your assets, you
make it that there are always "deep pockets" to protect you in an accident whether the accident is your fault or one where you are
blameless.
Real Life Scenarios That Trigger Uninsured Motorist Claims
There are 3 categories which are likely and happen daily which can trigger your own personal automobile insurance policy to
provide uninsured motorist coverage payments back to you. Remember this coverage doesn't simply protect you, it writes you
a check if you are not at fault and coverage on the other party either isn't strong enough for to cover the claim or where no
coverage is provided by the other party or their insurance company.
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Not At Fault Accident with driver who has no automobile liability or bond in force at the time of loss
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Not At Fault Accident with a Hit-and-Run vehicle with documented physical contact
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Not At Fault Accident where at fault party's insurance company denies coverage or becomes financially insolvent.
Many situations arise under these scenarios. Please call our office to discuss and, of course, all claim determinations are
made by applicable insurance company and their claims representatives.
Why You Need A Local Chandler Insurance Agent -
Uninsured Motorist Coverage and Claims in Arizona
Without question, your uninsured motorist coverage should be equal to your automobile liability coverage. That is the proper
way to set the policy up. In this way you are not only protecting your assets but also making it that every other driver has
the same protection you do if you need to pursue a claim against them for an accident that is not your fault.
When uninsured and underinsured motorist coverage applies is not always clear cut. Because of this, you need a
local Arizona expert who has the ability to talk directly to the claim representative handling your claim and if
need be - the claims manager. Our office is directly contracted with the insurance company providing your auto
insurance coverage. There is no middleman and since we can contact the claims reps directly your uninsured motorist
claim may be handled in a more expeditious fashion.
We're Just a Phone Call or Click Away
Your time is your most valuable resource. When you need us, we will respond. In a few quick
minutes we can give you a free
AZ Auto Insurance Quote,
AZ Motorcycle Insurance Quote or
AZ RV & Motorhome Insurance Quote.
Call us at (480) 963-5622 or
contact us for answers to your Chandler Arizona Auto Insurance
questions and a fast and easy auto insurance quote for your car, truck, motorcycle or RV.
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