To understand auto claims in Washington, it is important to understand insurance coverage that may or may not apply to your case. Washington automobile insurers offer different coverages designed to address different types of loss. Some coverage is required for all drivers (liability). Some coverage is required to be offered by insurers by state law(PIP). This article is designed to provide basic information about some common types of coverage available to you as a driver in Washington state.

Personal Injury Protection (PIP)

Personal injury protection (“PIP”) coverage is designed to provide payments for medical bills for you and your passengers when you are in an automobile accident—regardless of who caused the accident.

After an accident occurs and you report it to your insurance company, your claim representative will open a PIP claim on your behalf, if you carry PIP coverage. Using claim identification information like a claim number, you can visit doctors—whether it be in an emergency room, urgent care, or simply a checkup with your family doctor—who will submit their bills to your PIP claim. By doing so, neither you, nor your health insurance carrier has to pay them.

PIP coverage goes to pay medical bills that are reasonable in cost, medically necessary, and related to your accident without regard for legal fault. PIP is always the first payor, meaning PIP coverage will pay your medical bills until it is exhausted before your health insurance applies.

Washington requires that automobile insurance carriers offer PIP protection when they sell you insurance coverage pursuant to RCW 4.22.085. In order to decline this coverage, you must sign a form waiving it. Washington law also requires PIP coverage be offered in the following minimum amounts:

  • (a) Medical and hospital benefits of $10,000;
  • (b) A funeral expense benefit of $2,000;
  • (c) Income continuation benefits of $10,000, subject to a limit of $200 per week; and
  • (d) Loss of services benefits of $5,000, subject to a limit of two hundred dollars per week.

RCW 4.22.095

However, upon request by an insured, auto carriers are required to provide coverages up to the following amounts:

  • (1) Medical and hospital benefits of $35,000;
  • (2) A funeral expense benefit of $2,000;
  • (3) Income continuation benefits of $35,000, subject to a limit of $700 dollars per week; and
  • (4) Loss of services benefits of $14,600.

RCW 4.22.100

Because fault is not at issue for payment of PIP coverages, your insurance carrier should open a PIP claim for you once you inform them an accident has occurred and you or one of you passengers is injured. If the accident was caused by someone else (third-party liability) and you decide to pursue a claim, the PIP benefits your carrier extended often have to be paid back from your settlement, less a portion of your attorney fees the insurance carrier becomes legally obligated to pay.

Liability

Liability insurance is mandatory for automobile drivers in Washington. RCW 46.30.20. Drivers must carry insurance that protects other drivers (bodily injury liability) and their property (property damage liability) for accidents they cause. Unfortunately, the minimum limits of coverage for liability insurance are only $25,000/$50,000 for bodily injury and $10,000 for property damage. RCW 46.29.090. In many cases, $10,000 is not enough to repair automobile damages from even a minor accident. Likewise, $25,000 may not even cover an initial trip to the emergency room to determine how serious your injuries may be, let alone all the treatment necessary to fully recover from them.

Most carriers offer increased liability insurance limits in exchange for modest increases in coverage premiums. Typical insurers in Washington offer liability coverage at pre-set levels:

$25,000/$50,000

$50,000/$100,000

$100,000/$300,000

$250,000/$500,000

The first number in each of these coverage levels represents the most that an insurance policy will pay for a single person’s damages from an accident. The second number represents the most the policy will pay to all victims of an accident in the aggregate.

Property liability also increases with increased payment of premiums. If you are in an accident that totals a luxury vehicle, $10,000 will not get you far, but $100,000 may be sufficient.

Beyond standard liability coverage, most insurers in Washington over personal liability umbrella policies (PLUPs) in increments of $1 million. If you cause a serious accident, PLUPs are the best way to limit your personal financial exposure.

UM/UIM

Despite legal requirements that all drivers carry liability insurance there will always be some bad apples that drive without it. UM/UIM coverage ensures you are financially protected when an uninsured motorist (UM) or an underinsured motorist (UIM) causes an accident that leaves you injured. UM/UIM insurance is the best way to ensure you are not harmed by other drivers you have no control over without recourse.

Like liability coverage, UM/UIM coverage is typically offered at pre-set levels starting at $25,000 and extending to at least $250,000 for a claimant. Some carriers even offer UM/UIM umbrella coverage that can cover you in a multimillion-dollar claim caused by an un- or underinsured driver.

Unlike liability coverage, claims for UM and UIM benefits are made through your own insurance company. For UM and UIM claims, your insurer may ask for proof that the at-fault driver either: (1) has no insurance; or (2) carries insufficient insurance to satisfy your claim. If you believe the at-fault driver in your accident does not carry insurance, your carrier may even help you perform a coverage investigation to see whether a UM claim is necessary.

Once you open a UM or UIM claim with your insurer, your insurer has a fiduciary duty to you as an insured to treat you with the utmost good faith and fair dealing. First party claims for UM and UIM coverage carry a special set of rules for insurance carriers that can lead to additional legal claims like bad faith insurance practices or Insurance Fair Conduct Act violations. These are claims against the insurance carrier that are not bound by your individual coverage limits (extracontractual damages). When it comes time to renew your coverage, Madison Park Injury Law recommends you make sure you have at least $100,000 in UM/UIM coverage and more if you can afford it.

Property Damage (Collision and Comprehensive)

Most insurers offer some form of optional property damage coverage so you can ensure that you can repair your vehicle if it is damaged, whether or not the damage was your fault. If an accident is your fault, collision coverage will allow for repair bills, typically minus a deductible. Likewise comprehensive coverage will allow you to make a claim for repairs for vehicle damages caused by non-collision events such as car prowls or vandalism.

Sometimes when accidents occur, both the other party and their insurance company are uncooperative—even when it is their fault. If you have collision coverage, you can submit a claim for damages to your own insurance carrier, who will pay for repairs so you can get back on the road and get on with your life. Your insurance carrier will then pursue repayment of repair costs from the at-fault party’s insurance carrier through a process called intercompany arbitration. If fault for the accident is decided in your favor, your carrier will return your deductible to you.

While this list is by no means comprehensive as to all of the types of coverage that may be implicated in an accident, these coverages are commonly accessed to pay your damages after an accident. One area where insurance carriers and plaintiff attorneys can agree is that increasing your insurance coverage when you can afford to do so is a prudent thing to do. If you have any questions about your coverage after an accident, please contact us.