Is Arizona a No-Fault State?

When it comes to understanding auto insurance laws in the United States, it's essential to know whether a state operates under a no-fault or at-fault system. This distinction fundamentally affects how insurance claims are handled after a car accident.

There are currently 12 no-fault states in the US, and Arizona is not one of them.

Arizona's auto insurance laws were based on the at-fault system. This means that in Grand Canyon State, the driver who is found to be responsible for an accident is also liable for the damages incurred by other parties. 

Read on to find out more about this framework, crucial for both residents and visitors in Arizona as it impacts how insurance claims are filed and processed in the event of a motor vehicle accident.

No-Fault vs At-Fault Insurance System: Understanding the Difference

In a no-fault insurance system, your own auto insurance policy covers your medical expenses and lost wages up to a certain limit, regardless of who caused the accident. This system is designed to reduce the number of lawsuits since drivers generally do not need to prove fault to receive payment for injury claims. 

However, it's important to note that no-fault insurance does not cover property damage, which is still based on determining who is at fault.

Under the at-fault system, the driver who is legally responsible for the accident is also responsible for all resulting damages. This means that if you are at fault in an accident, your insurance company will pay for the other party's damages, including both property damage and medical expenses. 

Victims in an at-fault state can sue for additional damages, including pain and suffering.

Understanding the At-Fault Legal Framework in Arizona

Here's how this framework impacts drivers in Arizona:

• Liability Insurance Requirements: Arizona law requires all motor vehicle operators to carry liability insurance. This insurance covers bodily injury and property damage that the policyholder is legally responsible for due to causing a car accident.

• Minimum Coverage Limits: The state has set minimum liability coverage limits that all drivers must meet. These limits are $25,000 for bodily injury to one person, $50,000 for bodily injury per accident, and $15,000 for property damage per accident. [DIFI]

• Determining Fault: In the event of an accident, the fault is determined based on which driver's negligence caused the accident. This process may involve law enforcement, insurance adjusters, and possibly the courts.

• Right to Sue: Because Arizona is an at-fault state, drivers have the right to sue the at-fault driver for additional compensation for damages, including medical expenses, lost wages, and pain and suffering, beyond what is covered by insurance.

• Uninsured and Underinsured Motorist Coverage: While this coverage is not mandatory in Arizona, it is often recommended. It provides protection if you're involved in an accident with a driver who either lacks insurance or whose insurance is insufficient to cover the damages. Additionally, there are drivers who enter Arizona from other states or countries who might not possess liability insurance for their vehicles.

Exceptions and Limitations

There are some notable exceptions and specific scenarios where Arizona auto insurance limits might not apply, or additional coverage might be needed. 

The below points highlight the importance of understanding the specific terms and conditions of your insurance policy and considering additional coverage based on your unique circumstances and needs.

• Uninsured and Underinsured Motorist Coverage: If you have Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage that is below the 25/50 limits, your insurer will automatically increase it to the new minimum limits. This coverage is crucial if you are involved in an accident with a motorist who has insufficient or no automobile liability insurance.

• Driving in Other States: If you drive to another state that requires higher minimum liability limits, your Arizona policy limits will generally be interpreted to provide at least the minimum limits required by the laws of that state.

• Business Use of Vehicle: For using your vehicle for business purposes, your personal auto policy might not suffice, and you may need a commercial auto policy depending on the type of vehicle and its specific business use.

• Carpooling: If you're involved in a share-the-expense carpool, your policy will provide the same protection as if the vehicle wasn't used in a carpool.

• Rental Vehicles: For liability coverage, the policy of the rental company is primary, and your personal policy is secondary. For physical damage, some insurers allow your comprehensive and collision coverages to apply to the rental vehicle, subject to your policy's deductible.

• Driving in Canada and Mexico: While most Arizona personal auto policies provide coverage in Canada, driving in Mexico requires separate liability coverage from a Mexican insurer. Limited coverage might be provided within 25-50 miles of the Mexican border, but it doesn't meet the insurance requirements of Mexico.

Filing Car Accident Personal Injury Claims in Arizona

Filing a personal injury claim for a car accident in Arizona involves several important steps.

• Initially, ensure no one is hurt and call for assistance if necessary. 

• Gather the license plate, make, model, and insurance information of the other vehicle(s) involved. Document the accident scene with photos, including any relevant signage. 

• If your car isn't drivable, call the police and get a police report, especially if there are injuries or severe damage. Promptly inform your insurance company about the accident. 

• Finally, consider consulting an Arizona car accident attorney to understand your rights and the possibility of recovering damages. 

The statute of limitations in Arizona generally allows two years from the date of the accident to file a personal injury claim, so it's crucial to act quickly​. [Arizona Legislature]

Comparative Negligence in Arizona

Comparative negligence in Arizona refers to a legal principle applied in car accidents where the fault is shared among the involved parties. In such cases, the compensation one can receive is reduced by the percentage of their own fault in the accident. 

For example, if you're found to be 30% at fault in an accident and the total damages amount to $10,000, you would only be eligible to receive $7,000. This system ensures that each party's responsibility in the accident is fairly considered when awarding damages.