When choosing auto insurance, it’s important to understand how liability limits and uninsured motorist coverage in Arizona protect you. Many drivers focus on collision and comprehensive coverage, but neglect the critical financial protection that liability, uninsured, and underinsured coverage provide—especially in high-risk states like Arizona.
In this post, we’ll break down what these coverages mean and how they shield you from out-of-pocket expenses after an accident.
What Are Liability Limits?
Liability insurance covers damage you cause to others when you’re at fault in a car accident. Your liability limits determine how much your insurance company will pay for injuries or property damage.
There are two types of liability:
Bodily Injury Liability – Covers medical expenses, lost wages, and legal fees if you injure someone.
Property Damage Liability – Pays for damage to other people’s property, like vehicles, fences, or buildings.
Choosing the Right Liability Limits in Arizona
Arizona law requires minimum liability coverage of $25,000 for bodily injury per person, $50,000 per accident, and $15,000 for property damage. However, these state minimums may not be enough in serious accidents.
You can find the official minimum requirements listed on the Arizona Department of Transportation (ADOT) website.
If costs exceed your coverage, you could be held personally responsible. Higher liability limits offer greater protection. For example, if you’re liable for $100,000 in damages but your policy only covers $25,000, you’re responsible for the remaining $75,000.
Learn more about how to save money on car insurance while still maintaining proper coverage by giving us a call!
What Is Uninsured Motorist Coverage?
Uninsured motorist (UM) coverage helps when you’re hit by a driver who doesn’t have insurance. Arizona has many uninsured drivers, and if you’re involved in an accident with one, UM coverage pays for:
Medical bills
Lost wages
Pain and suffering
It also applies to hit-and-run situations where the at-fault driver can’t be identified.
What Is Underinsured Motorist Coverage?
Underinsured motorist (UIM) coverage helps if the driver at fault doesn’t have enough insurance to pay for your expenses. If their liability limits are too low to cover your injuries or damage, your UIM policy bridges the gap.
In Arizona, the state minimums are often insufficient for serious accidents, which makes underinsured motorist coverage crucial.
Why You Need Liability Limits and Uninsured Motorist Coverage in Arizona
Here’s why liability limits and uninsured motorist coverage in Arizona matter:
High Risk of Uninsured Drivers: Arizona ranks above average for uninsured motorists.
Rising Medical Costs: Treatment for injuries can easily exceed basic coverage.
Asset Protection: Higher liability limits protect your home, savings, and wages from lawsuits.
Peace of Mind: UM/UIM coverage ensures you’re not financially devastated by someone else’s mistake.
How to Choose the Right Coverage
Here’s how to find the right balance of affordability and protection:
Know the Minimums
Arizona’s minimum liability limits are $25,000/$50,000/$15,000—but these are often too low for real-world accidents.Consider Your Financial Risk
If you own a home, have savings, or other assets, choose higher liability limits.Assess Your Area
Live in a high-traffic city like Phoenix or Tucson? UM/UIM coverage is even more essential.Talk to an Expert
Your agent can explain how much coverage you need and help you compare quotes.
Explore classic car insurance in Arizona if you drive a specialty or collectible vehicle.
Protect Yourself Today
Accidents can happen anytime. Don’t wait until it’s too late to find out you’re underinsured. Understanding your liability limits and uninsured motorist coverage in Arizona will help ensure you and your loved ones are financially protected—no matter who’s at fault.
