Protect Yourself Against Uninsured, Underinsured Motorists, Says AAA

Phoenix, Ariz., Sept. 29, 2010. Driving without enough insurance is risky at best, but driving without any insurance is commonly unlawful, yet nearly one out of five motorists does just that. Driving without liability insurance is illegal in 49 states, including Arizona, but the Insurance Information Institute (III) estimates that an increased percentage of the American motoring public risks driving without it.

Their estimate is based on a 2009 Insurance Research Council (IRC) study, which approximated that 13.8 percent of motorists nationwide drove without insurance in 2007. In that same study, the IRC estimated that Arizona motorists exceeded the national average with 18 percent uninsured. The III anticipates that those figures are on the rise, projecting that 18 percent, or one out of seven drivers are uninsured nationwide this year, as a result of economic insecurity and unemployment.

“The Southwest has some of the highest ratios of uninsured motorists, and of those drivers who are insured, some may only be carrying the state minimum, which may not always be enough coverage,” said Brad Oltmans, vice president of insurance services for AAA Arizona. “Most consumers do not fully understand the scope of their insurance coverage and assume they are protected, but the reality is, if you are involved in a collision with someone who’s uninsured or underinsured, the consequences could be financially devastating.”

Uninsured Motorist (UM) coverage pays for the costs of injuries from accidents caused by uninsured or hit-and-run motorists. Underinsured Motorist (UIM) coverage helps pay the difference when an at-fault driver’s policy limit isn’t high enough to cover your medical bills. Twenty-one states, plus the District of Columbia, require motorists to carry UM coverage, and nine of those states also mandate UIM coverage.

Arizona does not require UM or UIM coverage and the state minimum required liability limits are among of the lowest in the country: $15,000 bodily injury liability for an individual per accident, $30,000 total per accident, and property damage liability for as little as $10,000. Therefore, if you are hit by a driver carrying only the minimum liability, and you and your passengers incur more than $30,000’s worth of medical expenses, you could be forced to pay the difference, or even face lawsuits from your passengers out of your own pocket.

AAA Arizona offers the following tips for motorists to guard themselves against unexpected costs after an collision:

• Consult your insurance agent to determine what coverage you have and to confirm that it is the appropriate type and amount to protect yourself, your family and your assets.

• Review your coverage regularly and update it to reflect household changes, such as new drivers, new vehicles and features, or even changes to your driving patterns, such as your daily commute.
  
  
• Inquire about UM and UIM coverage. AAA Auto Insurance highly encourages including UM and UIM coverage within its policies. Find out if you have coverage, and if not, how you can get it.

 “The state not only has low liability requirements, but it also doesn’t necessitate coverage to safeguard drivers against those uninsured and underinsured motorists,” said Oltmans. “Arizona has a high volume of visitors and short-term residents who may not be aware of the state laws; therefore it is critical for Arizona drivers to ensure they are financially protected in any collision.”

AAA Arizona, the Arizona affiliate of AAA, provides automotive, insurance and auto travel services to more than 800,000 Arizona members.  Annually, AAA’s Emergency Road Service responds to more than 450,000 calls for help on the streets and highways of the state as well as providing insurance, travel, and financial services to AAA members and motorists.  Since its founding in 1927, AAA Arizona has been a leading advocate for the safety and security of all travelers.  In 2008, AAA was ranked the No. 1 “socially responsible” brand by Landor’s BrandAsset® Valuator.