Uninsured and Underinsured Motorist (UM/UIM) Claims in Washington State

Driving in Washington State comes with serious risks. From the icy winter roads in Spokane to the heavy stop-and-go traffic in Bellevue and Vancouver, accidents happen daily. Unfortunately, Washington has a high rate of uninsured drivers. Even worse, the state's mandatory minimum liability insurance limits are extremely low: just $25,000 per person and $50,000 per accident under Wash. Rev. Code § 46.29.090. If you suffer a severe injury, $25,000 will not even cover your first day in the hospital.

This is where your Uninsured/Underinsured Motorist (UM/UIM) coverage steps in to save you from financial ruin. Dealing with your own insurance company in a UIM claim can sometimes be just as adversarial as dealing with the at-fault driver's carrier. To ensure you receive full compensation, we suggest browsing our US Lawyer Directory to find a seasoned Washington personal injury lawyer to represent your interests.

UM vs. UIM: Understanding Your Coverage

By law, under Wash. Rev. Code § 48.22.030, Washington auto insurers must offer you UM/UIM coverage when you buy a policy. You must explicitly reject it in writing if you do not want it.

Uninsured Motorist (UM): Applies when the person who hit you has absolutely no insurance, or if their insurance company denies coverage because they were driving a stolen car or committing a crime.

Underinsured Motorist (UIM): Applies when the at-fault driver has insurance, but their policy limits are too low to fully compensate you for your medical bills, lost wages, and pain and suffering.

Bodily Injury vs Property Damage

UM/UIM is broken into two parts. UM Bodily Injury pays for your physical harm, medical bills, and emotional distress. UIM Property Damage pays to repair or replace your vehicle. You can use your UIM Property Damage coverage to fix your car without having to pay your standard collision deductible, which can save you hundreds of dollars.

Hit-and-Run 'Phantom Vehicle' Claims

Washington law allows you to use your UM coverage if you are run off the road by a 'phantom vehicle' that flees the scene, even if there was no physical contact between the cars. However, the rules are strict. You must report the accident to a law enforcement agency, such as the Washington State Patrol, Olympia, within 72 hours. Furthermore, you must have an independent witness to corroborate that the phantom vehicle actually existed and caused the crash.

Stacking UIM Policies in Washington

'Stacking' means combining the limits of multiple UM/UIM policies you own to increase your total coverage. For instance, if you have two cars, each with $100,000 in UIM coverage, stacking would give you $200,000. In Washington State, insurance companies are legally allowed to include 'anti-stacking' provisions in their contracts. It is highly likely your policy forbids stacking, limiting your recovery to the highest single limit on the policy.

Will Filing a UIM Claim Raise My Rates?

Many victims are afraid to file a claim against their own UM/UIM policy because they fear their premiums will skyrocket. Under Washington State administrative codes, an insurance company is legally prohibited from raising your rates, canceling your policy, or failing to renew your coverage simply because you filed a UM/UIM claim for an accident that was not your fault.

Step-by-Step Process for a UM/UIM Claim

Pursuing a UIM claim involves stepping into the shoes of the at-fault driver to demand money from your own insurer.

Step 1: Obtain the Police Report

Your insurer will need official proof of the crash. Your attorney will secure Form WSP-161, Washington, Washington State Patrol, Motor Vehicle Collision Report to establish the basic facts of the collision and the other driver's lack of insurance.

Step 2: Settle with the At-Fault Driver (if applicable)

If the other driver is underinsured, you must first secure their entire policy limit. Before you accept that underlying settlement, your attorney must notify your UIM carrier, giving them a chance to buy out the claim (a procedural requirement to protect subrogation rights).

Step 3: Present the UIM Demand

Your attorney will send a comprehensive demand package to your UIM adjuster detailing your complete medical records, lost wages, and calculating the remaining pain and suffering damages.

Step 4: Arbitration or Litigation

If your own insurance company lowballs you, UIM policies usually contain a binding arbitration clause. Instead of a jury trial in a venue like the Spokane County Superior Court, Spokane, precedent established in Dayton v. Farmers Ins. Group, 124 Wash. 2d 277 (WA Supreme Court 1994) dictates that disputes over the amount of damages are often settled in private arbitration.

How Much Does it Cost?

Hiring a lawyer for a UIM claim is financially accessible for most victims.

• Attorney Fees: Lawyers handle UM/UIM claims on a contingency basis, generally taking 33% to 40% of the settlement. You pay no upfront hourly fees.
• Arbitration Costs: If your case goes to UIM arbitration, you may have to split the cost of the private arbitrator with the insurance company, which can cost $1,500 to $3,000 for your half.
• Expert Witnesses: If liability or medical causation is disputed, your lawyer may hire accident reconstructionists or medical experts, which are paid out of your final settlement.

How Long Does it Take?

A standard UIM claim takes longer than a regular claim because you must often wait to resolve the at-fault driver's portion first. Depending on your medical treatment, it can take 12 to 24 months to reach 'maximum medical improvement' and finalize both the underlying settlement and the subsequent UIM arbitration. In Washington, you generally have three years from the date of the breach of contract (when they deny your claim) or the date of the accident to pursue the UIM claim.

Frequently Asked Questions (FAQ)