When your damages are more than the defendant’s insurance company covers, it can be hard to get the rest of your damages covered. However, there are options.

First, know that the insurance company usually will not pay more, but the defendant can agree to a settlement where they cover the remainder out of pocket. However, you may also be able to sue other parties to spread the cost of damages across multiple insurance policies or to hold a commercial driver’s employer liable for your damages. Your own insurance might also have coverages to help you.

For a free case review, call Phoenix Accident and Injury Law Firm’s Arizona car accident lawyers at (480) 428-0816 today.

What is The Policy Limit for an Arizona Auto Insurance Policy?

Arizona’s state minimum car insurance requires drivers to have liability insurance that covers…

• $25,000 per person for injuries
• $50,000 per accident for injuries
• $15,000 per accident for property damage.
• Many drivers have higher policy limits, but that is up to the specific terms of their policy. You can usually find out during negotiations how much the defendant’s insurance policy will cover.

Can You Settle for More than Policy Limits in a Car Accident Case?

An insurance policy is a contract between the driver and the insurance company, saying that the insurance company will cover that much money when their driver causes a crash. However, that is the total amount they will cover; insurance companies will not agree to pay more.

The individual driver, however, can agree to cover more. Many drivers with low-dollar policies essentially expect to pay some money out of pocket if they cause a crash, given the trade-off of lower insurance premiums.

If you can work out an agreement with the driver and their insurance policy, you may still get full compensation, but only if the driver can afford to pay the rest out of pocket.

What if the At-Fault Driver Can’t Afford It?

Many people who can only afford state minimum insurance certainly can’t afford damages beyond that. It may be possible to, as part of a lawsuit, attach property they have to pay off the full damages, or put them on a payment plan.

However, there are other options:

Sue Multiple Drivers

If multiple drivers were at fault, you can sue multiple drivers. Each driver pays their fair share of the damages, spreading the cost among them.

For example, if the actions of four drivers each contributed to your damages, and you faced $100,000 worth of damages, then each driver paying $25,000 should cover you in full. That is possible even if they only have state minimum insurance.

Sue a Commercial Driver’s Employer

If a commercial driver caused your crash in the course of performing their work tasks, then their employer can be held responsible in their place. Transportation companies are usually able to cover far more than an individual driver would.

However, commercial drivers also tend to have higher policy limits, potentially making this a non-issue.

Sue Other Parties

Auto manufacturers, governments responsible for dangerous roadways, and other responsible parties can also be included in a lawsuit to cover their share of damages.

Use Your Insurance

Your own insurance might have optional coverages that can help you out.

What Can My Insurance Cover?

In Arizona, we use an at-fault insurance system. This means that when you are hurt, our Phoenix car accident lawyers can go after the other driver’s insurance to cover your damages. However, you may pick up optional coverages on your own insurance policy to help you.

Most of these require a deductible payment, but that is still better than getting no coverage for the damages beyond the defendant’s policy limits.

Medical Payment Coverage

If you have Medpay coverage, it will pay for medical treatment regardless of who injured you.

Collision Coverage

Collision coverage pays for your auto damage, regardless of who caused the accident.

Uninsured/Underinsured Motorist Coverage (UM/UIM)

If you add on UM/UIM coverage, it can pay for your damages as though the defendant were paying you. As the names imply, this covers you when the other driver either has no insurance or has insurance with an insufficient policy limit.

In Arizona, the minimum UM/UIM coverage is $25,000 per person and $50,000 per accident for injuries. This essentially doubles what is covered if the defendant only has state minimum insurance.

You can also choose higher coverage amounts (though the premiums go up accordingly).

FAQs for Underinsured Motorist Crashes in Arizona

What is a Policy Limit?

Every auto insurance policy has a limit, which says the insurance company will not pay more than that amount. The limit depends on the terms of your specific policy, but “state minimum” insurance has a limit of $25,000 per person for injuries.

Where Do I Find the Defendant’s Policy Limit?

Your attorneys can ask the defendant’s insurance company about the policy limits so that we can use that in our negotiations.

Is it Possible to Get More than Policy Limits in a Lawsuit?

If you sue the driver, the court can order damages beyond the policy limits. However, the insurance company will only pay up to the policy limit, meaning you would have to collect the rest from the defendant.

If they can afford to pay it, that makes things simpler; if they cannot, it can be hard to get paid.

Is Underinsured Motorist Insurance Mandatory in Arizona?

Insurance companies are required to offer you UM/UIM coverage, but you can decline it. Since it is more expensive, many drivers do decline it without realizing how powerful and helpful it can be.

Check with a lawyer when setting up your insurance policy to make sure your coverage amounts are high enough and that you have the coverage you need in case the other driver’s insurance is too low.

Does UM/UIM Stack in Arizona?

Some states allow households with multiple insurance policies to “stack” the coverage, so that you can combine them for additional coverage. Arizona law pushes against this, but there are some ways stacking can still happen, depending on the specific wording in your policy and the insurance company’s actions, so check with a lawyer.

Call Our Arizona Car Accident Lawyers for Help Today

To get started with a free case evaluation, call Phoenix Accident and Injury Law Firm’s Scottsdale, AZ car accident lawyers at (480) 428-0816.