Every Arizona auto policy comes with a form most people sign without reading: the one where you choose or decline uninsured and underinsured motorist coverage. On the Loop 101, Scottsdale Road, Shea, and every Valley freeway, you share the road with drivers who carry no insurance and drivers who carry only the state minimum. UM/UIM is the part of your policy that protects you and your family when the other driver causes the crash and cannot pay.
This guide is educational, in plain language. It is not legal advice and does not replace your policy wording. It is written by Colby Neal / Neal Insurance Agency, not by Farmers corporate. We will not invent premiums or claim payouts on this page.
Call or text (480) 860-0860 / text the same number with a photo of your declarations page and “UM/UIM” in the first line. Neal Insurance Agency · 10601 N Hayden Rd, Ste 112, Scottsdale, AZ 85260 · Mon–Fri 8:30am–5:30pm · weekends by appointment
UM vs UIM in plain words
- Uninsured motorist (UM): the driver who hurt you has no liability insurance. Subject to the policy wording, some hit-and-run situations can fall here too, so report the crash to police right away.
- Underinsured motorist (UIM): the driver who hurt you has insurance, but their limits are too low to cover your injuries.
Both are about injuries to you and the people covered by your policy: medical bills, lost wages, and pain and suffering, up to the limit you chose. Damage to your own car is usually a collision coverage question, not UM/UIM.
Arizona’s rule: insurers must offer it, and you can say no in writing
Arizona requires insurers to offer UM and UIM coverage. You are allowed to decline or lower it, but that choice is made on a signed form. That is the part we care about: we would rather you understand what you are giving up before you sign it away to shave a price. We do not recommend rejecting UM/UIM just to make a quote look smaller.
Why 25/50/15 matters to you, even if you carry more
Arizona’s legal minimum liability is 25/50/15: $25,000 per person and $50,000 per accident for injuries, and $15,000 for property damage. A driver carrying only that minimum may not have nearly enough to cover a serious injury, a hospital stay, or months away from work. When their limit runs out, UIM on your own policy is what can step in, up to the limit you bought. When they have nothing at all, UM is what you have.
That is why carrying high liability limits to protect others and low UM/UIM to protect yourself is a mismatch we see often on Valley declarations pages.
How to think about your UM/UIM limit
- Match your liability. Many households set UM/UIM at the same limits as their own bodily injury liability. It is a common starting point, not a rule.
- Count who rides with you. Kids, a carpool, aging parents, and a new teen driver all change the picture.
- Look at your health plan and income. High deductibles, self-employment, or a single income make the injury side of a crash hit harder.
- Ask about an umbrella. Some umbrella policies can add UM/UIM on top, depending on the carrier and state. We will tell you what is available, not promise it.
We will not tell you that you must buy a set amount. We will show you the options side by side with real quotes.
Where UM/UIM can follow you
Depending on the policy wording, UM/UIM can cover you and household family members in more places than people expect: as a passenger in someone else’s car, and sometimes as a pedestrian or on a bike. Rideshare and delivery use is its own conversation, so disclose it. Bring your declarations page and we will walk through what your policy actually says rather than guess.
Medical payments, collision, and rental: the coverages that sit beside UM/UIM
UM/UIM does not replace the rest of the file. Medical payments coverage helps with medical bills regardless of fault, up to its limit. Collision repairs your car. Rental reimbursement keeps you moving while it is in the shop. Buying or leasing a car? Lenders and lease companies also have their own requirements; see new car, lienholder & gap. The full walkthrough of an Arizona auto file is in our Scottsdale auto insurance guide.
How this agency places it
We are a Farmers Insurance agency. Colby Neal is a third-generation Farmers agent. Farmers is the first conversation for the auto file, and we bundle with home or renters when it helps. If Farmers cannot place the risk, we look at Bristol West or other markets through Kraft Lake and tell you which path we are on. English, Portuguese, and Spanish. Licensed in Arizona, California, Oklahoma, and Texas.
Call or text (480) 860-0860 / text the same number. Say “UM/UIM” and send your declarations page. 10601 N Hayden Rd, Ste 112, Scottsdale, AZ 85260. Weekdays 8:30am–5:30pm, weekends by appointment.
What to send for a UM/UIM review
- Your current auto declarations page (a photo works)
- Any UM/UIM rejection or selection form you signed, if you have it
- Drivers and vehicles in the household, and who rides with you regularly
- Whether you have an umbrella, and its limit
- Use: commute, pleasure, business, rideshare, or delivery
- Home or renters, if you want the household quoted together
FAQ
Is uninsured motorist coverage required in Arizona? Arizona requires insurers to offer uninsured (UM) and underinsured (UIM) motorist coverage, and you can decline it in writing. It is not the same as the required 25/50/15 liability. We would rather you understand it before you sign it away. Call (480) 860-0860.
What is the difference between UM and UIM? UM is for when the at-fault driver has no liability insurance (and, subject to the policy wording, some hit-and-run situations). UIM is for when the at-fault driver has insurance but their limits are too low to cover your injuries.
Does UM/UIM pay to fix my car? Generally UM/UIM in Arizona is about injuries, not the car. Damage to your own vehicle is usually a collision coverage conversation. Check your policy wording, and ask us if you are not sure what you have.
How much UM/UIM should I carry? Many households match UM/UIM to their own liability limits, but there is no single right number. It depends on your health coverage, income, who rides with you, and your budget. We will not tell you a premium on this page; we will show you the options side by side.
Does UM/UIM follow me when I am walking, biking, or in someone else's car? It can, depending on the policy wording. Many policies extend UM/UIM to you and household family members in other situations. Bring your declarations page and we will walk through it with you.