2008 November Archive

Arizona Auto Insurance Laws and Transferring Policies

By Personal Injury Lawyer on November 11, 2008

Moving to Arizona? Be care when purchasing auto insurance or transferring your policy.

As personal injury attorneys, we deal with insurance coverage disputes and issues almost every day. It seems we have at least one call each week from a prospective client that thought they had “full coverage” but found out - after they were hurt, after it was too late - that they did not have a certain type of insurance to protect themselves. For example, in some states underinsured motorist coverage applies to both underinsured AND uninsured motorists. In Arizona, however, these two coverages must be purchased separately.

We have seen occasions where someone moved to Arizona and asked their insurance agent to transfer their policy. The agent, not knowing any better, did not purchased the underinsured motorist coverage and thus the injured person basically lost that protection because each state handles insurance policies and coverage differently.

When an insurance agent fails to provide the proper insurance or makes a mistake like this, is that malpractice? When an insurance company denies coverage that an insured thought they had purchased, is that bad faith? Well, it depends on the facts of that situation, but it is best to avoid the question by making sure that the purchase of Arizona car insurance includes uninsured and underinsured coverage.

Also, when there is confusion, it is best to immediately consult with an Arizona personal injury lawyer that handles disputes with insurance companies. For instance, Arizona law requires insurance companies to have someone sign a “rejection form” when they chose not to purchase certain insurance coverage. We have had multiple cases over the years where the insurance company was not able to comply with Arizona law and had failed to obtain a rejection signed by our client. In these cases, we have been successful in getting our client the compensation the client thought they had purchased from the outset of the case.

Arizona Unisured Motorist and Underinsured Motorist Coverage

By Personal Injury Lawyer on November 6, 2008

How do I make sure I have uninsured and underinsured motorist coverage?

Considering how confusing it can be to purchase insurance, this is an excellent question. We should start by getting rid of any discussion of “full coverage.” What is “full coverage?” It doesn’t exist. Or, a better way to look at it is that “full coverage” is something almost everyone thinks they have, but it means something different to everyone. Really, it means nothing to us as Arizona auto accident attorneys or trial lawyers, in general.

Instead, the question is whether you have purchased both uninsured AND underinsured motorist coverage, and have you purchased sufficient amounts. First, keep in mind that you want to purchase as much uninsured and underinsured motorist coverage as you are allowed to under the law. What that means is that the amount of your liability coverage (the main policy most agents talk to you about) is the amount you want to purchase to protect yourself and your family. And that is a key statement: protect yourself and your family. The primary, liability coverage you purchase protects everyone else in the world that may be hurt if you are negligent. The coverage that protects you and your loved ones is uninsured and underinsured motorist coverage - those actually “kick in” to help should you ever become injured due to an underinsured or uninsured at-fault driver who did not have adequate insurance to pay for the injury you or your loved ones suffered.

Second, be careful when purchasing insurance on the phone or on-line. We are not against purchasing insurance in this manner, we do it ourselves. However, it is important to make sure that you have both uninsured and underinsured, and that you have these coverages to the full amount you have your liability coverage. We do not think it is a good idea to purchase a $100,000/$300,000 policy for liability - protecting everyone else - and then purchase a lesser amount of uninsured or underinsured coverage.

Third, the cost of this suggestion is usually not very high in comparison to the other coverage. The cost of uninsured and underinsured motorist coverage is usually just a small fraction of the cost of the main, liability policy. Be certain to price it out and make a decision that allows you to protect yourself.

Uninsured and Underinsured Motorist Coverage

By Personal Injury Lawyer on November 4, 2008

What is uninsured motorist coverage?

As personal injury lawyers in Arizona, we know that understanding “uninsured motorist coverage” can be confusing to many people.

When a driver of car is negligent and hurts someone else, they are responsible for the injuries they cause. The claim that the injured person has against the at-fault driver is called a personal injury claim. When a driver hurts someone else - whether that other person is in another car, on a bike, on a motorcycle, or walking - the negligent driver has legal liability. A basic principle behind this system is that the person who causes someone else to owe money to doctors (medical bills) and who loses money because they are unable to work (lost wages) should get reimbursed by the person who caused the injury.

When a driver causes a car accident in Arizona, his has “liability” and owes money for the medical bills, wage loss, and other damages he caused. When the injured person goes to make this claim, the driver’s insurance company takes over. The insurance company for the driver will then pay the legally compensable damages. In plain English, this means that the insurance company is on the hook for the medical bills, lost wages, and so forth.

What happens if the other driver who caused the injury does not have insurance? Well, under car insurance laws in Arizona, law that driver is still liable and still required to pay. But, as the old saying goes, you can’t get blood from a turnip. If the other driver could not even afford car insurance, what are the chances that driver has money that can pay the claim? Possible, but unlikely.

This is where it important to have uninsured motorist coverage.

Uninsured coverage (sometimes referred to as UM) only applies if the person that causes a traffic accident does not have insurance.

What is underinsured motorist coverage, and how is it different from uninsured motorist coverage?

Underinsured motorist coverage is similar to uninsured motorist coverage, but it is vital to have both as they will protect you under different conditions, each equally important.

When a driver of a vehicle is at fault in an injury auto accident in Arizona, and that driver has no insurance, the best hope for protection from mounting medical bills, lost wages, and other damages for the injured party is to have uninsured motorist coverage. However, what happens when the driver who was negligent did have insurance, but did not have nearly enough insurance to cover the damages the driver caused? This is where having underinsured motorist coverage (sometimes referred to as UIM coverage) is so important to the injured person.

For instance, after a serious injury or car accident, it is not unusual to see medical bills of $50,000, or more. (Yes, that is a shocking number for many people, but considering the rising cost of healthcare, we see medical charges of this amount on a fairly regular basis when the injuries are serious.) Now, if the other driver only has the minimum, state-required mandatory insurance policy limits in Arizona - $15,000 - that will not even cover the medical bills, let alone reimbursement for lost income and other damages. How can someone protect their children, their spouse, and themselves in case they are ever injured in a car accident? Under the scenario - serious injuries, high medical expenses, and inadequate insurance by the at-fault driver - Arizona underinsured motorist coverage is vital.

Underinsured will pay for any money that at-fault driver is required by law to pay where that driver did have insurance but did not have enough insurance to pay for the injury that at-fault driver caused.