Understanding Arizona's Auto Insurance: No-Fault Or Not?

Arizona is an at-fault state for automobile insurance. This means that the driver who is responsible for causing an accident is also responsible for paying for the damages. In other words, Arizona follows a fault-based system, meaning negligent drivers who cause auto accidents are responsible for any damages the wreck caused. This is in contrast to no-fault states, where all parties involved in motor vehicle accidents, whether at fault or not, must first submit their claims to their own insurance companies.

Arizona is an at-fault state

Arizona is an "at-fault" state for automobile insurance. This means that the driver deemed responsible for causing an accident is also responsible for paying for the damages. In other words, the "you break it, you buy it" theory is what differentiates Arizona from states that apply a no-fault system.

In no-fault states, all parties involved in motor vehicle accidents, whether at fault or not, must first submit their claims to their own insurance companies. However, in Arizona, injured people can directly file their claims with the at-fault driver's insurance carrier. Arizona and other at-fault states use the tort liability system to settle damages. As a result, the at-fault driver's insurance company will be liable for covering the claim. Thus, if someone suffers an injury due to the other driver's fault, they will be able to claim accident-related compensation from the person who caused the accident, rather than relying on their own insurance company.

In Arizona, if you are found liable for a traffic accident, you will be held personally accountable for any damage amount that exceeds your policy's limits. Therefore, it is recommended that you consider purchasing higher liability coverage to protect your savings and assets in case of a catastrophic traffic accident. For example, if you only purchase a minimum limit of $25,000 per person and an individual's damages are $500,000, you will be personally liable for $475,000 of the remaining damages, after the $25,000 is paid by the insurance carrier.

Arizona also follows a "pure comparative negligence" approach, which means that, in the case of multiple negligent parties, liability can be shared and divided equally to the percentage at fault each party was in the accident. Subsequently, a party's compensation will be reduced by the percentage of fault they are proven to have had in the accident. For instance, if a plaintiff was awarded $100,000 in damages and they were found to be 20% liable, they would receive $80,000 in compensation from the defendant, who was found to be 80% responsible for the wreck.

No-fault states: claim compensation from your own insurance company

No-fault insurance states require that, in the event of injuries sustained in a car accident, the injured party files a claim with their own insurance company, regardless of who caused the accident. In these states, drivers are normally required to have a minimum amount of Personal Injury Protection (PIP) coverage, which helps ensure that people will have coverage if they're injured in an auto accident. This coverage is often in addition to other types of auto insurance coverage.

In no-fault insurance states, the law requires each driver to file a claim with their own insurance company, regardless of who is at fault. This means that all medical expenses are paid by each driver's individual insurance company.

In most no-fault claims, you may be required to give your insurer a recorded statement of the accident and complete a medical exam with a physician selected by the insurance company. Failure to follow the requirements of your insurance company could result in a claim denial.

It's important to note that no-fault insurance states only apply to injuries sustained in a car accident. For vehicle damage resulting from a car accident, drivers are typically not limited to the no-fault scheme and can pursue a claim against the at-fault driver or under their own collision coverage.

While no-fault insurance states offer a streamlined claims process and quicker payment, it's important to be aware that "pain and suffering" and other non-economic effects of the accident are not typically compensated. Additionally, no-fault insurance states may have higher insurance costs due to factors such as claims being paid regardless of fault, encouraging fraud, and possible exaggerated injuries.

At-fault states: the at-fault driver's insurance company is liable

Arizona is an "at-fault" state for automobile insurance. This means that the driver who is responsible for causing an accident is also responsible for paying for the damages. In other words, the at-fault driver's insurance company will be liable for covering the claim. Thus, if someone suffers an injury due to the fault of another driver, they will receive accident-related compensation from the person who caused the accident, rather than relying on their own insurance company.

In at-fault states like Arizona, if you are injured in a traffic crash, you are compensated after you submit a claim to the negligent driver's auto insurance company. Your attorney will typically need to identify the negligent driver and offer proof that the driver was at fault.

In most states, when an accident occurs, one party is usually considered "at-fault" and must cover the injuries of the other driver and their passengers (typically via their liability insurance coverage). The at-fault driver's auto insurance should pay for any property damage and medical bills, and in some cases, compensation for other damages, such as pain and suffering.

In no-fault states, drivers must carry personal injury protection (PIP) insurance. This type of coverage pays for medical expenses after a car accident, no matter who was at fault. The drivers also won't need to file a claim through one another's insurance, which saves time and energy. The downside of PIP, however, is its cost. Most states that require PIP coverage have premium rates above the national average.

Arizona uses a pure comparative negligence approach

Arizona is a fault-based insurance system, also known as an "at-fault" state. This means that the driver deemed responsible for causing the accident is also responsible for paying for the damages. In no-fault states, all parties involved in car accidents, regardless of who is at fault, must first file their claims with their own insurance companies. However, Arizona is different; injured people can directly file their claims with the at-fault driver's insurance carrier.

Comparative negligence is a situation in which more than one party shares the blame for an accident. In Arizona, the law of comparative negligence governs these cases. For instance, if a person was driving over the speed limit and was injured in a collision that was the fault of the other driver, a jury could find the injured person partially to blame. Even though the injured driver's responsibility in this case is limited, it might still have a substantial influence on the eventual settlement or case award.

Under Arizona's pure comparative negligence law, a plaintiff can still sue for damages if they are more at fault than the defendant. However, this may subject the plaintiff to a counterclaim from the defendant, and the compensation may be less than the expense of the legal costs for pursuing the claim. Arizona's comparative negligence law does not preclude a person from recovering after an accident, but it lowers the compensation they receive.

Arizona's statute of limitations for personal injury claims

Arizona is an "at-fault" state for automobile insurance. This means that the driver deemed responsible for causing an accident is also responsible for paying for the damages.

There are some exceptions to the two-year statute of limitations for personal injury claims. For example, if it takes longer than two years for a person to reasonably realise an injury has occurred, the discovery rule may apply. This means the limitation clock doesn't start running until the earlier of the date that the injury is discovered, or the date that the injury reasonably should have been discovered.

Libel or slander claims, which are a subset of personal injury law, have a statute of limitations of one year in Arizona.

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