What Happens If the Person at Fault in an Accident Has No Insurance in Arizona?

Arizona follows an at-fault, or tort-based, auto liability system. Under this framework, the driver responsible for causing a motor vehicle accident is legally obligated to compensate others for medical expenses, property damage, and other losses resulting from the crash. This liability is typically handled through the driver's auto insurance policy. However, when the at-fault driver has no insurance, the injured party may face significant hurdles in recovering compensation.

Victims may file a personal injury or property damage lawsuit to recover losses directly from the uninsured driver, but actual recovery can be difficult if the individual has limited financial assets. In such situations, the injured party may instead rely on their uninsured motorist (UM) coverage, if available, to help offset losses.

Driving without insurance violates Arizona Revised Statutes § 28-4135 and is categorized under Arizona traffic violations and infractions. Offenders may face fines, license and vehicle registration suspension, and the requirement to provide proof of future financial responsibility through an SR-22 certificate. In addition to these administrative penalties, uninsured at-fault drivers remain fully liable under civil law for the damages they cause.

Is It Illegal To Drive Without Insurance In Arizona?

Yes. Arizona requires all drivers operating on state roadways to maintain proof of financial responsibility, otherwise called "liability insurance", through a company authorized to do business in the state (A.R.S. § 28-4135). This prerequisite makes drivers financially liable in an at-fault accident, including when that accident involves motorcycles, mopeds, or golf carts, thereby protecting the public from the economic aftermath of motor vehicle accidents.

Operating a vehicle without liability insurance is illegal in Arizona and can lead to:

• Suspension or restriction of driving privileges
• Civil penalties between $500 and $1,000
• Vehicle impoundment
• Higher insurance premiums

What Is the Minimum Insurance Requirement in Arizona?

The current minimum insurance requirements in Arizona, also called "minimum levels of liability insurance" or "minimum levels of financial responsibility", are:

• $25,000 bodily injury liability (one individual)
• $50,000 bodily injury liability (two or more individuals)
• $15,000 property damage liability

A.R.S. § 28-4009 establishes these "25/50/15" coverage limits.

Drivers are not mandated to purchase medical payments (MedPay) coverage in Arizona, and uninsured or underinsured motorist (UM/UIM) coverage is optional. However, A.R.S. § 20-259.01 requires insurers to offer UM/UIM to policyholders.

What To Do After A Car Accident With an Uninsured Driver in Arizona

Sections 28-662 and 28-663 of the Arizona Revised Statutes (A.R.S.) mandate drivers involved in a collision to stop or immediately return to the accident scene (or as close to the scene as possible). State law also requires the at-fault driver to exchange information with the other involved driver(s), including:

• Name, contact number, address, and vehicle license plate
• Driver's license and the issuing state
• Insurance company's name and policy number

Parties should also note the responding police department or agency, if any.

If the at-fault driver is not insured, the other driver should promptly collect evidence, such as police reports, eyewitness statements and contacts, receipts, and photographic/video documentation. They should also notify their insurance provider or agent promptly. Individuals with uninsured motorist, MedPay, collision, or other optional automobile insurance coverages may recover certain losses. A personal injury lawsuit or other befitting claim may also be a remedy if UM coverage is not an option. Seeking legal advice or checking with one's insurer is often recommended to navigate these situations and maximize compensation.

Note: While Arizona law does not mandate drivers to report car accidents, calling the police after any accident is advised to prevent legal complications and provide medical assistance (if necessary). ADOT offers a Citizen's Collision Reporting Tool for minor accidents (no injuries, estimated damage under $2,000, or involving only two vehicles), but this does not replace the Arizona Crash Report, which law enforcement officers must complete for more serious incidents (injury, death, over $2,000 in property damage, or a traffic citation).

What Happens If You Have No Insurance But The Other Driver Was At Fault?

At-fault drivers are financially liable for collisions in Arizona. However, driving without insurance is still a legal offense, meaning any motorist caught committing this violation, whether they are responsible for the crash or not, will incur the following legal and administrative consequences unless reduced or waived under A.R.S. § 28-4137:

• Minimum $500 fine for a first violation, plus the restriction or suspension of driving privileges for three months.
• Minimum $750 fine for a second violation within 36 months, plus suspension of driving privileges for six months.
• Minimum $1,000 fine for three or more violations within 36 months, plus suspension of driving privileges for a year.

To reinstate driving privileges, the at-fault party may be required to maintain an SR-22 certificate for three years.

Can I Sue an Uninsured Driver in Arizona?

Yes. In Arizona, victims of accidents caused by an uninsured at-fault driver are entitled to file a civil lawsuit for compensation, which may cover medical costs, wage losses, and attorney fees. A typical example of such a claim is personal injury, which can be filed in the court with jurisdiction over the case. A.R.S. § 12-542 places a two-year statute of limitations on injury, death, or property damage suits. Civil actions are often time-consuming, and financial compensation might not be guaranteed if the at-fault driver is indigent.

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in Arizona?

If an at-fault driver in Arizona has no insurance, the other party may still recover damages if they purchased specific coverages to act as financial buffers or safeguards. For example, MedPay can cover reasonable and necessary medical, hospital, or limited funeral expenses for the driver or others injured or killed in a crash. Physical damage (collision or comprehensive) coverage, which lenders of financed or leased vehicles may require, helps with vehicle repairs or replacements. Meanwhile, uninsured and underinsured motorist coverages (A.R.S. § 20-259.01) address bodily injury costs under different circumstances. The latter (UIM) specifically covers medical expenses, lost wages, and pain and suffering for the no-fault driver or their passengers in a collision involving a driver with insufficient insurance.

What Is Uninsured Motorist Coverage in Arizona?

Uninsured motorist coverage is entirely optional in Arizona but highly recommended for policyholders. While insurers are legally mandated to offer it, the insured individual makes the final purchasing decision.

UM coverage safeguards insured individuals when the at-fault driver lacks insurance. It pays for medical expenses, wages lost, and pain and suffering induced by an uninsured driver, a miss-and-run driver, or a hit-and-run driver. Persons covered include the driver, family members residing with the driver, and passengers in the vehicle at the time of the accident. UM coverage does not pay for damages to the insured's vehicle or other property.

Together with underinsured coverage, UM coverage offers the most practical protection against uninsured motorists. Policyholders can purchase UM and UIM coverage in amounts equal to or less than their bodily injury liability coverage limits. However, the chosen limits cannot be lower than the statutory minimum—currently 25/50.

What If I Don't Have Uninsured Motorist Coverage in Arizona?

Drivers without UM coverage in Arizona involved in a crash where the other motorist is at fault may pay out-of-pocket or pursue legal action if the at-fault party declines voluntary compensation.

Should an Arizona court rule in favor of the no-fault party (the plaintiff), the individual can utilize legal instruments to collect on the judgment—a writ of garnishment can be used to seize a portion of the at-fault driver's wages or bank funds, while a writ of execution can be used to seize the debtor's property directly. In addition, the plaintiff can file a motor vehicle lien with the Motor Vehicle Division (MVD) within 60 days. This lien suspends the at-fault party's driver's license until the judgment is fully satisfied.

Other potential recovery options for the no-fault party include filing a claim under other purchased coverages, like MedPay. If the injury resulted from a crime, like a hit and run or DUI, compensation may be sought from the Arizona Criminal Justice Commission's (ACJC) Crime Victim Compensation Fund. However, the Victim Compensation Program typically serves as the payer of last resort, to be accessed only after all other sources of economic recovery have been exhausted.

How Do I Get Compensation from an Uninsured Driver in Arizona?

In Arizona, a civil lawsuit to collect compensation from an uninsured driver can be initiated in the justice or superior court. Claims of $10,000 or less, including small claims actions for damages under $3,500, are filed in the justice courts, while those exceeding $10,000 are heard in the superior court. A.R.S. §§ 12-401 and 22-202 prescribe the venue for such events (i.e., the county where the claim may be brought). The Arizona Judiciary provides the typical steps involved in these civil cases.

How Much Can You Recover From an Uninsured At-Fault Driver in Arizona?

Everyone whose lives or property were affected by a collision with an uninsured at-fault driver is entitled to compensation in Arizona. If a judgment is entered because of the incident, interest will accrue, which can begin to run from the judgment date (i.e., post-judgment interest) or from the demand date or the date the damages were incurred (i.e., pre-judgment interest). The interest rate on most civil judgments in Arizona is either 10% per year or the prime rate plus 1%, whichever is less (A.R.S. § 44-1201).

However, the actual damages recovered are limited by the at-fault party's assets and liquidity. Where the defendant has insufficient or legally exempt assets (in other words, they are "judgment-proof"), full compensation may be unattainable or substantially delayed until financial circumstances change.

How To Find Out If the At-Fault Driver Has Insurance in Arizona

If an at-fault driver lacks proof of insurance or provides invalid information, the other party can mail a completed Insurance Information Request, a copy of the police report, and $3 to the Arizona Department of Transportation (ADOT). ADOT will then relay any insurance information on file for the accident date or confirm if none is available. Per A.R.S. § 28-667 (C), involved parties (e.g., the driver, their legal representative, or an insurer) can also request a crash/accident report from the investigating law enforcement agency.

Where the case is litigated, the plaintiff may request information about the defendant's (at-fault party's) insurance policy through discovery.

Are Accidents Public Record in Arizona?

Yes. Accident or crash reports are approved for public release under Arizona's Public Records Law and can be requested through the investigative agency. Law enforcement departments may partner with independent vendors or utilize public service portals to issue reports online for a fee. Requesters will need the case/report number or collision date and a valid credit/debit card.

Although redacted reports are accessible to anyone, unredacted reports are reserved for legally authorized parties per A.R.S. § 28-667(C). Note: Traffic accident reports related to serious or fatal injuries, those pertaining to a crime, such as Driving Under the Influence (DUI), and those with accompanying incident reports that expose a victim are unavailable through a police department's vendor and must be requested directly from the investigative agency.

Similarly, documentation for accident-related claims filed in an Arizona court is public under Arizona Supreme Court Rules, Rule 123, and can be requested from the presiding court.

Can You Go to Jail for Causing an Accident Without Insurance in Arizona?

Causing an accident without insurance typically does not result in a jail or prison sentence in Arizona. Driving without insurance is a civil traffic infraction under A.R.S. § 28-4135; thus, offenders are subject to civil and administrative penalties. However, jail time may be imposed in aggravating circumstances, such as fabricating/altering insurance documents or causing a fatal or severely debilitating injury. In such conditions, the violation may be regarded as a misdemeanor or felony.

Can You Settle With an Uninsured Driver Out of Court in Arizona?

Yes. Civil cases litigated in Arizona, including those arising from accidents, can be settled out of court. Out-of-court settlements are often speedier and less expensive than formal litigation and are frequently achieved through negotiation. Written and verbal settlements are just as binding and enforceable under Arizona contract law. However, it is generally recommended to have settlement agreements in writing, reviewed by a legal professional, and signed by all involved entities to circumvent future disputes over the terms.

Can I Get Compensation If I Was Partially at Fault?

Yes. Arizona follows a pure comparative negligence model in personal injury cases, as outlined in A.R.S. § 12-2501 et seq. This means that even if a party is partially at fault for their injury or loss, they can still recover damages. However, the amount recovered will be proportionate to the percentage or degree of one's fault.