What Happens If Your Arizona Uninsured Motorist Claim Exceeds Policy Limits?

A serious car accident can leave you facing medical bills, lost income, and ongoing treatment. Discovering that the driver who caused the accident has no insurance makes an already difficult situation even more stressful. Fortunately, uninsured motorist (UM) coverage can provide an important financial safety net.

But what happens when your injuries are worth $150,000 and your uninsured motorist policy only provides $50,000 in coverage? Does your insurance company have to pay the difference? Can you access additional insurance policies, or are you responsible for the remaining expenses?

In Arizona, your insurer generally does not have to pay more than the applicable uninsured motorist policy limits simply because your damages exceed them. However, additional coverage, potential claims against other responsible parties, and certain insurance-related legal issues may affect how much compensation is available.

Before accepting a policy-limits settlement, it is important to understand what your insurance covers and whether other potential sources of recovery exist.

How Do Uninsured Motorist Policy Limits Work in Arizona?

Uninsured motorist coverage protects you when a driver who causes an accident has no qualifying liability insurance. Arizona requires automobile insurers to offer UM coverage, but drivers can choose not to purchase it.

Under Arizona Revised Statutes § 20-259.01, UM coverage applies to qualifying bodily injury or death claims. It is separate from underinsured motorist (UIM) coverage, which addresses situations where the responsible driver has insurance but not enough to cover the injuries.

Your policy might provide UM limits of $25,000 per person and $50,000 per accident, commonly expressed as 25/50.

The first figure is generally the maximum available for one injured person under that coverage. The second is the total limit available for covered injuries involving multiple people in the same accident, subject to the individual limits.

Example: Your Injuries Exceed Your $50,000 UM Limit

Consider a hypothetical Phoenix driver who suffers a serious back injury after being struck by an uninsured motorist.

Their damages include:

Suppose this person’s only applicable UM coverage has a $50,000 per-person limit.

Even if the insurance company agrees that the claim is worth $150,000, it ordinarily is not obligated to pay the additional $100,000 under that coverage.

This does not mean the remaining losses are insignificant or that the case should immediately be closed. It means the next step is determining whether additional sources of compensation exist.

Can You Use More Than One Uninsured Motorist Policy?

Possibly. One of the first questions worth investigating is whether you qualify for uninsured motorist benefits under another automobile policy.

For example, you may have UM coverage on your own vehicle and potentially qualify as an insured under a separate household policy. A passenger may also qualify under the policy covering the vehicle in which they were riding.

Whether multiple coverages can be combined depends on the policies, the identities of the insureds, and Arizona law.

What Is Stacking in Arizona?

Stacking refers to combining insurance coverage from multiple vehicles or policies for the same accident.

Arizona permits stacking in certain circumstances. However, A.R.S. § 20-259.01(H) allows insurers to restrict it when they comply with the statutory requirements, including appropriate policy language or notice.

In Franklin v. CSAA General Insurance (2023), the Arizona Supreme Court addressed how insurers must restrict stacking under a multi-vehicle policy. The court explained that an insurer seeking to prevent stacking must satisfy the statute’s requirements.

The issue received further clarification in July 2026.

In State Farm v. Balzan, the Arizona Supreme Court considered whether an injured person could access additional UIM coverage through several policies purchased by family members. The court held that multiple named insureds who jointly obtain coverage may constitute one purchasing unit for purposes of the statutory anti-stacking rule.

The decision involved UIM coverage specifically, but interpreted a statutory provision governing both UM and UIM coverage.

The practical lesson is that having multiple vehicles or insurance policies does not automatically mean you can combine all their limits. Each potentially applicable policy needs to be reviewed before you assume the insurer’s stated limit is the maximum available.

Can You Sue an Uninsured Driver for the Remaining Damages?

Yes. Depending on the circumstances, you may be able to pursue a personal injury claim against the uninsured driver.

However, obtaining a judgment and collecting that judgment are two different things.

An uninsured driver may have limited income, few recoverable assets, or substantial existing debts. Even if you establish liability and receive a judgment, collecting the full amount may be difficult.

An attorney can also investigate whether someone else shares legal responsibility for the accident. For example, if the uninsured driver was working at the time of the collision, the employer might have liability under applicable law. Other parties could potentially be responsible depending on the accident’s circumstances.

You should also consider your insurer’s rights. Arizona law allows an insurer that pays UM benefits to pursue reimbursement from the responsible uninsured motorist. Any proposed settlement with that driver should be evaluated in light of those rights.

The goal is to identify legitimate sources of recovery without creating complications through overlapping claims or settlement agreements.

What About Medical Bills That Exceed Your UM Settlement?

When your insurance coverage cannot fully compensate you for your injuries, managing medical expenses becomes especially important.

Your health insurance may help pay for treatment, subject to your plan’s terms. If you purchased Medical Payments coverage, also called MedPay, it may help with eligible accident-related medical expenses up to its limits.

However, these benefits do not necessarily cover lost wages, pain and suffering, or every expense arising from an accident. Reimbursement obligations and medical liens may also affect your recovery.

A $50,000 settlement does not necessarily mean you will receive $50,000 after attorney fees, case expenses, and applicable medical obligations.

Before finalizing a claim, it is worth examining whether outstanding medical bills can be resolved appropriately and whether valid liens or reimbursement claims can be negotiated.

For additional information, read our article about medical liens after an Arizona car accident.

What If Your Insurance Company Refuses to Pay Your Policy Limits?

There is an important distinction between an insurer refusing to pay more than the available coverage and an insurer improperly refusing to pay benefits you are entitled to receive.

Your insurance company may dispute fault, the severity of your injuries, or whether certain medical treatment was related to the accident.

If you believe your insurer is unreasonably delaying, denying, or undervaluing your claim, an attorney can evaluate whether it has fulfilled its contractual and legal obligations.

Arizona’s Department of Insurance and Financial Institutions also accepts qualifying consumer complaints involving insurance claim handling. Filing a complaint, however, does not extend applicable legal deadlines.

How Long Do You Have to File an Arizona UM Claim?

Do not assume you can wait until all your medical bills are final.

Under A.R.S. § 12-555, an uninsured motorist claimant generally must provide written notice of the intent to pursue UM benefits within three years of the accident, subject to certain exceptions involving when the claimant learns the responsible driver is uninsured or coverage is unavailable.

If the claim remains unresolved, the statute also establishes deadlines for requesting arbitration or filing suit. Different deadlines may apply to a personal injury lawsuit against the responsible driver.

Promptly notifying your insurer and obtaining legal guidance can help protect your options.

Talk to Perez Law Group About an Uninsured Motorist Claim

When your injuries exceed your available insurance coverage, it is important to understand the full financial impact of the accident before agreeing to a settlement.

At Perez Law Group, PLLC, we help injured individuals and families in Glendale, Phoenix, and throughout Arizona navigate complicated automobile insurance claims.

Our team can investigate potentially available coverage, evaluate accident-related damages, review settlement agreements, and help determine whether additional recovery options exist.

If you were injured by an uninsured driver and are concerned that your policy limits will not cover your losses, contact Perez Law Group at (602) 730-7100 to schedule a consultation.

You can also learn more about our Glendale car accident legal services.