Underinsured motorist coverage in Arizona after Franklin v. CSAA
Saks Law ·
If your household insures more than one car on a policy, a 2023 Arizona Supreme Court decision may mean more coverage than your insurer first offers.
Why underinsured coverage matters in Arizona
Arizona requires drivers to carry only $25,000 of bodily injury coverage per person, under A.R.S. § 28-4009. A surgery and a few nights in the hospital can pass that quickly.
Underinsured motorist coverage on your own policy pays the difference once the at-fault driver's limit is used up, up to your own limit. Arizona insurers must offer it in writing under A.R.S. § 20-259.01, and you choose whether to buy it.
What Franklin v. CSAA decided
In 2023, the Arizona Supreme Court answered a question a federal court had sent it in Franklin v. CSAA General Insurance Co. The court held, unanimously, that a policy covering several cars carries separate underinsured motorist coverage for each car, and that those coverages can be combined.
The case began after a negligent driver killed the plaintiff's mother. Sam Saks was part of the team representing the family.
What it means for a household with several cars
Say a policy covers three cars, each with $50,000 of underinsured coverage. An insurer that pays on one car only may be paying a third of what the policy provides. After Franklin, the coverage for each car can be added together, unless the insurer followed the statute's specific steps to limit it.
The same question has reached other insurers. Doyle v. Pekin Insurance Co., a federal class action for policyholders whose insurer had paid on one car only, ended in a $12.45 million class settlement the court approved in September 2025.
How to check your own policy
Find your declarations page, the summary page your insurer sends at each renewal. It lists every insured car and the uninsured and underinsured limits for each one.
Look for other policies in the household too. A second policy, such as one for a car a family member owns, may add coverage of its own.
Deadlines, and when to get help
Your insurer must receive written notice of an underinsured motorist claim within three years of the crash, under A.R.S. § 20-259.03. Before you sign a release for the other driver's limit, make sure it won't end a claim on your own coverage.
If your insurer offered coverage on one car when your policy covers several, call for a free case review. Underinsured coverage is where Sam's published cases are, and we don't get paid unless you get paid.
Sources
- Franklin v. CSAA General Insurance Co., Arizona Supreme Court (2023) (opens in a new tab)
- Doyle v. Pekin Insurance Co., U.S. District Court for Arizona (docket) (opens in a new tab)
- A.R.S. § 28-4009, minimum liability coverage (opens in a new tab)
- A.R.S. § 20-259.01, uninsured and underinsured coverage (opens in a new tab)
- A.R.S. § 20-259.03, notice of an uninsured or underinsured claim (opens in a new tab)