What Happens If You Get in a Crash in a State With Lower Insurance Requirements?
Insurance laws vary widely from state to state. Arizona requires drivers to carry certain minimum coverage amounts, but some states have much lower requirements. If you’re driving outside Arizona and get into a collision with someone who only carries their state’s minimum coverage, you could face serious financial challenges—especially if the accident causes significant injuries or vehicle damage.
Knowing how to handle these situations can make a huge difference. The Tempe car accident attorney team explains what Arizona drivers should know when traveling through states with lower insurance requirements.
Arizona’s Minimum Coverage vs. Other States
Arizona requires drivers to carry at least:
$25,000 for bodily injury per person
$50,000 for bodily injury per accident
$15,000 for property damage
These limits are relatively average compared to other states. But some states have much lower requirements. For example, New Hampshire doesn’t mandate auto insurance for all drivers, and Florida only requires $10,000 in personal injury protection and $10,000 in property damage liability.
If you’re hit by a driver from one of these states, their coverage may not come close to covering your medical bills or repair costs.
What Happens After the Crash?
When you’re in an accident outside Arizona, the laws of that state apply to the initial claim process. If the at-fault driver only carries their state’s minimum required coverage, that’s the maximum amount their insurance company is obligated to pay—regardless of whether it’s enough to fully compensate you.
For example:
If your medical bills total $40,000 and the at-fault driver only has $15,000 in bodily injury coverage, you could be left responsible for the remaining $25,000.
If your vehicle is totaled and the at-fault driver only has $10,000 in property damage liability, you may have to seek alternative options to cover the difference.
How Your Arizona Insurance Protects You
The good news is that most Arizona policies include uninsured/underinsured motorist coverage (UM/UIM). This coverage can pay for your medical bills, lost wages, and pain and suffering when the at-fault driver doesn’t have enough insurance.
If you carry collision coverage, your insurer can also pay for vehicle repairs or replacement, regardless of who caused the crash. These protections are especially valuable when traveling through states with lower insurance requirements, where the risk of encountering underinsured drivers is higher.
Multi-Vehicle Accidents Are Even More Complex
Accidents involving multiple vehicles can make coverage limitations even more challenging. If several people are injured, the at-fault driver’s insurance may have to be divided among multiple claimants, often leaving each person with only a fraction of their actual costs covered.
For example, if a driver in a low-insurance state has a $25,000 per accident limit and three people are injured, each person may receive only a portion of that coverage. The rest of your medical expenses would need to be covered through your own insurance or potentially through a personal lawsuit against the at-fault driver.
Can You Sue for the Difference?
You generally have the right to pursue a lawsuit against the at-fault driver to recover damages beyond their insurance coverage limits. However, many drivers with minimum insurance also lack significant personal assets, making it difficult to collect additional compensation even if you win in court.
This is why many Arizona drivers choose to carry higher UM/UIM limits—to protect themselves rather than rely on the financial resources of the at-fault driver.
Rental Cars and Out-of-State Travel
Many Arizona drivers rent vehicles when traveling out of state for work or vacation. Most personal auto insurance policies extend coverage to rental cars, but minimum liability requirements of the state you’re in still apply to other drivers. If you’re hit by someone with low coverage while driving a rental car, you could still face the same challenges with property damage and injury compensation.
Reviewing your coverage—including collision damage waivers and supplemental liability options—before renting can prevent unexpected financial exposure.
Steps to Take After an Accident in a Low-Insurance State
If you’re involved in a crash outside Arizona, take these steps to protect yourself:
Call the Police and Get a Report: This creates an official record and helps prevent disputes later.
Collect Information: Get the other driver’s insurance details, license plate, and contact information.
Document Everything: Take photos, gather witness information, and keep receipts for any out-of-pocket expenses.
Notify Your Insurer Quickly: They can determine how your UM/UIM coverage or collision insurance applies.
Seek Prompt Medical Care: Delaying treatment can make it harder to prove your injuries and receive full compensation.
Why This Matters for Arizona Drivers
Arizona drivers traveling to nearby states—like New Mexico, Utah, or even California—might not think about how other states’ insurance laws affect them. But if you’re hit by someone with only bare-minimum coverage, your medical expenses and vehicle damage can easily exceed what their insurer is required to pay.
Carrying strong UM/UIM coverage, medical payments coverage, and collision protection gives you peace of mind when traveling, whether it’s a weekend road trip or a cross-country move.
Final Thoughts
Being in a crash in a state with lower insurance requirements can leave you facing unpaid medical bills and repair costs—even if you weren’t at fault. Relying solely on the at-fault driver’s insurance often isn’t enough when their state’s laws require minimal coverage.
Arizona drivers can protect themselves by reviewing their own insurance before traveling, increasing UM/UIM coverage limits, and knowing what to do immediately after an out-of-state accident. Preparation now can prevent financial surprises later and help you recover faster when the unexpected happens.
