Everyone who owns a motor vehicle registered in the state of Arizona is required by law to purchase liability insurance coverage for that vehicle. This is intended to cover losses suffered by other people involved in a traffic accident with the policyholder. Unfortunately, not everyone in the Grand Canyon State complies with this requirement. Even those who do may only buy enough insurance to meet the state-mandated minimum, which might not be enough to cover the harm caused by a severe wreck.
In such cases, the process of seeking financial recovery for your car crash injuries can be complicated, so you will not want to do it alone. Fortunately, help is available from the car accident lawyers at Phillips Law Group, who have decades of experience helping people like you get paid fairly after uninsured/underinsured car accidents in Prescott and all over central Arizona.
As of July 1, 2020, Arizona follows a “25/50/15” approach to auto insurance coverage requirements. This shorthand title refers to the amount of coverage policyholders must purchase—and accordingly, insurers must provide—for different types of accident-related losses. Specifically, auto owners must have at least $25,000 of liability insurance coverage for a single person’s injuries, $50,000 for all injuries, and $15,000 for all property damage caused by a single wreck.
Technically, Arizona drivers can avoid this requirement by obtaining a certificate from the state Office of the Treasurer confirming that the applicant has deposited at least $40,000 in cash or some other recognized form to pay for damages other people experienced when involved in a traffic wreck with them. However, if an auto owner fails to do either of these things and has insufficient cover when they crash their motor vehicle in Prescott, the criminal sanctions they may face for violating Arizona’s car insurance laws would not directly reimburse victims of the crash for their losses.
If someone is legally at fault for causing a car accident but is unable to cover all accident-related losses suffered by the victim of the accident, the at-fault person can be held personally liable for crash-related financial losses. Unfortunately, most people with inadequate protection have little in the way of personal assets that could be used to pay for losses stemming from a serious traffic wreck in Prescott, so suing them is not always practical.
However, what can be helpful in such a scenario is uninsured/underinsured motorist coverage. This is an optional type of insurance coverage that all insurance providers must offer, with at least the same 25/50/15 minimum coverage amounts as a standard liability policy. A car crash victim who has this insurance already included in their policy can use it to recover losses that the at-fault person’s liability coverage should have paid for.
Being involved in a car crash of any kind can be frightening and potentially life-altering. In addition, it can be unsettling and infuriating to discover that the person to blame for your wreck also violated state law by not being properly insured, thereby complicating your financial future.
The financial recovery process after uninsured/underinsured car accidents in Prescott will be much easier with support from an experienced legal professional. To discuss your case, call Phillips Law Group today and schedule a free, no-obligation meeting with one of our team members.
Available 24/7