Washington requires drivers to carry only $25,000 in bodily-injury liability coverage per person. One night in the hospital can exceed that. When the driver who hit you has the minimum, or no insurance at all, the coverage that actually pays for your injuries is often your own: underinsured motorist coverage, or UIM. Most people don’t know whether they have it or how much. This article explains what it does, how claims work in Washington, and what to check on your policy today.
What UIM covers
UIM coverage steps in when the at-fault driver’s liability insurance is not enough to pay for your damages, or when there is no liability insurance to collect from. In Washington the term “underinsured” includes uninsured vehicles, hit-and-run vehicles, and vehicles whose liability limits are lower than your damages. It pays for the same kinds of losses you could recover from the at-fault driver: medical bills, lost wages, and pain and suffering, up to your UIM limit. Property damage UIM coverage is separate and optional, but highly recommended because of the escalating values of motor vehicles these days.
Because Washington law requires insurers to offer UIM coverage with every auto policy, and the coverage can only be rejected in writing, most Washington drivers have it. The question is usually how much. Many people carry $25,000 or $50,000 in UIM because that is what the agent quoted; the cost of raising it to $250,000 or more is often modest compared to the protection it provides. With respect to property damage UIM coverage, it’s recommended that you have at least $50,000 (and in the case of electric vehicles $100,000) for coverage in the event that you are hit by an underinsured or uninsured motorist.
How a UIM claim works
A UIM claim is a claim against your own insurance company, but it is not a friendly one. Your insurer stands in the shoes of the at-fault driver: it can dispute fault, dispute the extent of your injuries, and argue about the value of your claim, just as the other driver’s insurer would. The usual sequence:
- Settle with the at-fault driver’s insurer for its policy limits, or establish that there is no coverage. Before you accept a settlement, notify your UIM insurer and get its consent; most policies require it so the insurer can protect its right to recover from the at-fault driver.
- Present the UIM claim to your own insurer with your medical records, wage documentation, and a demand.
- Negotiate. Your insurer will evaluate the claim as if it were the at-fault driver’s carrier.
- Arbitrate or litigate if necessary. Many Washington UIM policies provide for arbitration; others require a lawsuit. Either way, the case is decided on the same fault and damages questions as any injury case.
The amount recoverable under UIM is generally your total damages minus what the at-fault driver’s insurer paid, up to your UIM limit. Your own personal-injury-protection (PIP) payments may also be reimbursed to your insurer out of a recovery, subject to Washington’s rule that the insurer shares in the attorney fees it took to obtain that recovery, a rule established in cases the LePley firm litigated.
Hit-and-run and phantom vehicles
If a driver fled, or a vehicle forced you off the road without contact, UIM can still apply. Washington allows claims for “phantom vehicle” accidents, but requires that the accident be reported to police within a short window and that the facts be corroborated by evidence other than your own testimony. Report immediately, get witness names, and preserve any dashcam or nearby camera footage.
What to check on your policy today
- Your UIM bodily-injury limit per person and per accident. If it is at or near the state minimum, ask your agent what it would cost to raise it.
- Whether you rejected UIM in writing at some point. If so, you can add it.
- Whether you carry PIP and in what amount; PIP pays medical bills promptly regardless of fault.
- Whether your policy covers you as a pedestrian or cyclist and while riding in someone else’s car. Most do, which surprises people.
Mistakes to avoid
- Signing a release with the at-fault driver’s insurer before notifying your own UIM carrier.
- Assuming your insurer is “on your side” in a UIM claim and giving a recorded statement without preparation.
- Letting the at-fault driver’s low limits define the value of your case. The limits define what that insurer will pay, not what your injuries are worth.
- Missing the deadline. UIM claims are governed by the policy and by contract law, and the time limits can differ from those for a claim against the other driver.
How LePley Law Firm helps
Patrick LePley worked on the legislation that shaped Washington’s underinsured motorist statute and has written the motor-vehicle insurance chapter of the Washington deskbook relied on by attorneys across the state. Our firm handles UIM claims from the first notice to arbitration or trial, and we coordinate the liability, UIM, and PIP pieces so that nothing is left on the table. If you were hurt by an uninsured or underinsured driver anywhere in Washington, call (425) 641-5353 for a free phone consultation, or complete our personal injury intake form.
Call (425) 641-5353 for a free phone consultationRelated reading: Avoid These Mistakes After a Car Accident · Personal Injury