Is Arizona a No-Fault State?

In short, the answer is no. Arizona is not a no-fault insurance state. Rather, Arizona’s policies reflect an at-fault or “tort” system. There are only twelve states that offer a no-fault option, but the rest of the states follow at-fault procedures. 

No-fault states include: 

• Florida
• Hawaii
• Kansas 
• Kentucky
• Massachusetts 
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Pennsylvania 
• Utah 

An at-fault insurance state implements a system that makes the liability of a driver proportionate to the fault the driver had in the accident. The driver’s fault could be 0% or 100% or somewhere in between and would be responsible to cover the damages accordingly.  

Everything You Need to Know about Arizona Auto Insurance Claims 

If you live in Arizona, it is important that you understand how auto insurance claims work according to the state’s policies. Not only will this help you ensure you have proper insurance coverage, but you should also know exactly what to expect in the event you are in a car accident. 

What is the Difference Between No-Fault & At-Fault Insurance? 

If a state has a no-fault insurance policy, each driver must file a claim with their insurance provider after an accident occurs no matter what. It doesn’t make a difference who is at-fault. Because of this, drivers in no-fault states must purchase a Personal Protection Plan (PIP) with their auto insurance policy. Additionally, no-fault states generally limit the ability a driver has to sue the other driver after an accident. 

On the other hand, at-fault insurance states require drivers to file their insurance claim directly with the at-fault party’s insurance carrier. This is because the insurance company for the driver who is at-fault is responsible to pay for the damages according to each parties’ degree of fault. This means that both drivers could be held responsible on some level. In Arizona, this type of shared responsibility is determined using a process called “comparative negligence”. 

What Does Comparative Negligence Mean?   

While every at-fault insurance state might have a different process to resolve situations where both parties are at-fault, Arizona implements a pure comparative negligence process. In short, this means that even if you are primarily responsible for the accident, you can still recover compensation if the other driver was partially responsible. The compensation a driver recovers will correlate to the driver’s fault in the accident, so someone who is primarily at-fault still might not recover much. 

FAQs Regarding Fault & Liability 

When it comes to understanding who should be held liable for an accident, sometimes it is clear as day, and other times it’s not so easy to decipher. Even if determining who is at-fault comes easy, other variables can muddle the situation. Factors like if the at-fault party is uninsured or from another state might cause concern. Continue reading the following FAQs for information that will help you understand what to do in these types of situations. 

How do you prove liability for an auto accident? 

In some cases, it might be necessary to hire an auto accident lawyer to help you prove which driver was at-fault for an accident. This often requires an investigation to some extent or another. Important evidence to uncover includes: 

• Police accident reports 
• Accident reconstruction analysis 
• Evidence from the scene (such as video or photographic) 
• Statements from witnesses who were at the scene 
• “Black box” data (any available electronic crash data) 
• Medical records and bills 

It is vital to gather this kind of evidence in order to avoid a “he said”/”she said” scenario, which doesn’t lead to any solid conclusions. 

What if the at-fault party is uninsured?

Unfortunately, there are too many uninsured drivers on the road. In fact, according to the Insurance Information Institute in 2019, nearly 12% of drivers on the road in Arizona are uninsured. It’s certainly worth preparing for this situation in case you ever encounter it. 

There are a couple of things you can do to protect yourself in case you are in an accident with an uninsured driver. 

1. Uninsured motorist coverage – This is a type of insurance coverage that will provide coverage for you and your family that is comparable to what the other driver’s coverage would have given. This allows you to claim medical expenses, lost wages, pain and suffering, etc. even if you are in an accident with a driver who is at-fault but uninsured. 
2. Medical payments coverage – This is a type of insurance coverage that will cover unpaid medical bills no matter which party is at-fault. This kind of coverage can be especially helpful in the event of a catastrophic injury.

What if the at-fault party is an out-of-state driver?  

Even if the at-fault party is an out-of-state driver, so long as the driver has an insurance policy, then each driver’s insurance policy will still provide the required coverage according to the state’s laws. It might seem uncertain at first, but rest assured, each state generally has laws that govern minimum liability coverage, fault, and statute of limitations no matter where the at-fault driver is from. 

What is the statute of limitation on a car accident claim in Arizona?

In most cases, a driver involved in an accident will have two years from the date of the crash to file a lawsuit against the at-fault driver. An exception to this timeframe includes: 

• If the at-fault driver is employed by a local or municipal government (fire department, police officer, etc.) the statute of limitations might be shortened to 180 days to make a claim. Similar exceptions might apply if the federal government is involved in the accident.  

Contact an Experienced Team of Arizona Auto Insurance Agents 

If you live in Arizona, make sure you are prepared with auto insurance coverage that will protect you in every possible scenario. You won’t regret it. AZCAL Insurance Services is an independent insurance agency that will do the shopping for you so that you can have the best insurance for the most affordable price. Our team is sure to provide you with excellent service and answer any questions you have along the way. Contact AZCAL Insurance today to learn more!