What If the Other Driver Doesn’t Have Insurance in a Different State?
Car accidents are stressful no matter where they happen, but the situation becomes more complicated when you’re traveling out of state and discover the other driver doesn’t have insurance. While Arizona drivers are familiar with handling crashes locally, different states have different insurance laws, and those differences can affect your options.
The Tempe car accident attorney team explains what happens when the at-fault driver in another state has no insurance and how Arizona drivers can protect themselves.
Insurance Laws Vary by State
Each state sets its own auto insurance requirements. Arizona requires drivers to carry liability insurance with minimums of $25,000 per person for bodily injury, $50,000 per accident, and $15,000 for property damage.
Other states have their own rules. Some require less coverage, and a few don’t require all drivers to carry insurance at all (for example, New Hampshire has unique financial responsibility laws). This means that when you drive outside Arizona, you could encounter drivers with little or no coverage, which increases your risk.
How Your Arizona Policy Works Out of State
The good news is that most Arizona auto insurance policies travel with you anywhere in the U.S. If the driver who caused your accident has no insurance, your own policy may help, depending on the coverage you’ve purchased.
Two key coverages apply in this situation:
Uninsured Motorist Coverage (UM)
UM coverage helps pay for injuries, lost wages, and pain and suffering when the at-fault driver has no insurance. It functions almost like stepping into the shoes of the at-fault driver’s insurance policy.
Underinsured Motorist Coverage (UIM)
UIM coverage helps when the at-fault driver has insurance, but their limits aren’t high enough to cover all your damages. For example, if you have $50,000 in medical bills and the at-fault driver’s policy only covers $15,000, UIM coverage can pay the difference up to your policy limits.
Arizona does not require UM or UIM coverage, but it’s highly recommended, especially for drivers who frequently travel out of state.
Filing a Claim in Another State
If you’re in a crash with an uninsured driver outside Arizona, your insurance claim process may be slightly different:
State law determines liability rules. Some states use modified comparative negligence rules that could affect your payout if you’re found partially at fault.
Your insurance will handle much of the process. With UM/UIM coverage, your insurer steps in to pay for damages as if they were the at-fault driver’s insurer.
You may need to return for court. If your claim cannot be settled and a lawsuit becomes necessary, it usually must be filed in the state where the crash occurred.
What If You Don’t Have UM/UIM Coverage?
If you opted out of uninsured motorist coverage, your options may be limited. You can:
Use your health insurance to cover medical expenses.
Use your collision coverage to pay for vehicle repairs or replacement.
Consider suing the at-fault driver directly.
However, many uninsured drivers also lack significant assets, making lawsuits less effective at recovering full compensation. This is why UM/UIM coverage is considered one of the most important optional coverages to carry.
Rental Cars and Uninsured Drivers
If you’re driving a rental car out of state, your Arizona auto insurance usually still applies, including UM/UIM coverage if you purchased it. Additionally, some rental companies offer optional supplemental coverage that can provide another layer of protection if you’re hit by an uninsured driver.
If you’re traveling for work and driving a company vehicle, commercial policies may also offer uninsured motorist protection, but it’s best to confirm before your trip.
Steps to Take After an Out-of-State Crash With an Uninsured Driver
Call the Police Immediately: An official report is crucial, especially when there’s no insurance information to exchange.
Collect All Evidence: Take photos, record witness information, and gather every detail about the driver and vehicle.
Notify Your Insurer Quickly: Let them know the driver had no insurance so they can start processing your UM claim.
Seek Medical Attention: Even minor injuries should be documented early to prevent disputes later.
These steps can make the difference between a smooth claim and one that stalls due to missing information.
How Comparative Fault Laws Can Affect Your Claim
Different states use different fault rules. Arizona follows a pure comparative fault system, allowing you to recover damages even if you are mostly at fault (though your recovery is reduced by your percentage of fault).
Some states have modified comparative fault rules, which bar recovery if you’re more than 50% (or 51%) at fault. Others still use contributory negligence, where even 1% fault could block your recovery entirely. Understanding the local law where the crash occurred helps set realistic expectations.
Why Out-of-State Crashes Take Longer to Resolve
Claims involving uninsured drivers are already complex because your insurer is essentially taking on the role of the at-fault driver’s insurer. Add an out-of-state location, different legal rules, and potential travel for court appearances, and the process often takes longer than an in-state crash.
This is why documenting evidence and communicating consistently with your insurer is critical from day one.
Final Thoughts
Being hit by an uninsured driver is frustrating enough, but it’s even more complicated when it happens in another state. Fortunately, your Arizona insurance generally follows you wherever you travel, and UM/UIM coverage can provide critical protection in these situations.
Before your next trip, review your coverage and consider increasing UM/UIM limits to safeguard against uninsured drivers, whether they’re in Arizona or hundreds of miles away. Preparation now can make a major difference if an unexpected accident occurs on unfamiliar roads.
