Underinsured motorist (UIM) coverage is a critical component of auto insurance in Arizona, designed to protect you when an at-fault driver’s insurance falls short of covering your damages. Given the state’s minimum liability requirements, many drivers may not carry sufficient coverage, leaving you exposed to potential financial hardships.
In the case of State Farm v. Jacey Lee Orlando, the Arizona Supreme Court ruled that insurance companies are not required to provide UIM coverage for off-road ATV accidents. Orlando was seriously injured when an ATV she was a passenger in overturned. The driver’s insurance paid the policy limits, which did not cover the full extent of her injuries. Orlando then filed a claim with her own insurer under her UIM policy, which was denied. The court upheld the denial, emphasizing the importance of understanding the specifics of UIM coverage. Read more about the case here.
Arizona law mandates that insurers offer UIM coverage to policyholders, but purchasing it is optional. According to A.R.S. § 20-259.01, insurers must provide this offer in writing, and policyholders can accept or reject it. If you choose to decline, you must do so in writing. This coverage is designed to bridge the gap between the at-fault driver’s liability limits and your actual damages, ensuring you’re not left bearing the financial burden of an accident caused by someone else’s insufficient insurance.
It’s crucial to be aware of the time limits associated with UIM claims. Under A.R.S. § 12-555, you must provide written notice to your insurer of your intent to pursue a UIM claim within three years after the date of the accident. Failing to meet this deadline can result in the loss of your right to claim these benefits.
Given the complexities of UIM coverage and the potential financial risks of being underinsured, it’s advisable to consult with experienced legal professionals. At Hirsch Talcott, our team, including attorney Jack Hirsch, a Certified Specialist in Personal Injury and Wrongful Death, and attorney Chelsie Talcott, a former Maricopa County Deputy Public Defender, is dedicated to guiding you through the intricacies of UIM coverage. We operate on a contingency fee basis, meaning you pay no fees unless we win your case. Learn why injured Arizonans choose us.
Don’t leave your financial security to chance. Contact Hirsch Talcott today to ensure you’re adequately protected under Arizona’s insurance laws.
