How Does a UIM Claim Work in Washington State?

Below, Seattle personal injury attorney Nick Major explains how a UIM claim works in Washington State, when UIM coverage applies, and some of the issues injured people should understand before resolving their claims.

What Is UIM Coverage in Washington State?

Underinsured motorist coverage is insurance that may protect you when the person responsible for an accident does not have enough liability insurance to compensate you for the damages you are legally entitled to recover.

Washington law defines an underinsured motor vehicle based on whether the insurance available from the responsible driver is less than the damages the injured person is legally entitled to recover. You can read the statute at RCW 48.22.030.

Washington law generally requires UIM coverage to be included at the same limits as an insured’s bodily injury liability coverage unless the named insured or spouse rejects all or part of that coverage in writing.

This is one reason it is important to obtain the actual insurance policy and declarations page rather than simply assuming you do or do not have UIM coverage.

The Washington State Office of the Insurance Commissioner also provides information for drivers injured by uninsured and underinsured motorists.

When Does a UIM Claim Apply?

A UIM claim commonly arises when the at-fault driver’s insurance is not enough to cover the full value of an injury claim.

For example, UIM coverage may become important when:

• The at-fault driver has relatively low bodily injury liability limits;
• Your medical expenses are substantial;
• You have significant lost wages or loss of earning capacity;
• Your injuries require future medical treatment;
• You suffer long-term pain, disability, or limitations;
• The at-fault driver has no insurance at all;
• You are injured in a hit-and-run accident; or
• A so-called phantom vehicle causes an accident without actually striking your vehicle.

UIM coverage is particularly important in serious-injury cases because the amount of liability insurance available from the other driver may have little relationship to the actual harm caused by the collision.

Nick Major Law discusses this issue in more detail in our article, What Happens If the At-Fault Driver’s Insurance Isn’t Enough to Cover My Injuries?

How Does the UIM Claim Process Work in Washington State?

Although every case is different, a Washington UIM claim commonly involves several stages.

1. Determine the At-Fault Driver’s Insurance Limits

The first step is usually determining how much liability insurance is available from the driver or drivers who caused the accident.

If the value of your damages exceeds the available liability coverage, your own UIM coverage may become relevant.

2. Review Your Own Insurance Policy

Your declarations page should identify your UIM limits, but the full insurance policy contains the actual terms, conditions, exclusions, and procedures governing the claim.

Do not assume that your UIM limits can be determined solely from an insurance card.

3. Present the Liability Claim

In many cases, the injured person first pursues the liability coverage available from the at-fault driver.

If the at-fault driver’s insurer offers its policy limits but those limits are insufficient, attention may then shift to the injured person’s UIM coverage.

4. Notify Your UIM Carrier

You should notify your own insurer that a UIM claim may exist. The timing and notice requirements can depend on the language of the policy and the circumstances of the case.

This can be particularly important before accepting a liability settlement or signing a release.

5. Document the Full Value of Your Damages

A UIM insurer does not necessarily accept the other insurance company’s evaluation of the claim.

The claim may need to be supported with evidence such as:

• Medical records and medical bills;
• Evidence of future treatment;
• Wage-loss documentation;
• Tax or employment records when appropriate;
• Photographs and collision evidence;
• Witness statements;
• Expert opinions in serious cases; and
• Evidence showing how the injuries have affected your daily life.

6. Negotiate the UIM Claim

Your own insurance company will evaluate the claim and may make an offer.

If the parties disagree about the value of the injuries, the cause of certain medical conditions, the reasonableness of treatment, or responsibility for the collision, additional negotiation or litigation may be necessary.

Example of How a Washington UIM Claim May Work

Assume you are injured in a Seattle car accident and your damages are reasonably valued at $100,000.

• The at-fault driver has $25,000 in bodily injury liability coverage.
• You have $100,000 in UIM coverage.
• The at-fault insurer pays its $25,000 limit.

The fact that you have $100,000 in UIM coverage does not automatically mean your UIM insurer owes you another $100,000.

The important issue is the amount of damages you are legally entitled to recover and how the applicable policies and payments affect the amount remaining unpaid.

In this simplified example, if your total damages were established at $100,000 and $25,000 had already been recovered from the at-fault driver, there could potentially be a $75,000 uncompensated loss to address through UIM coverage, subject to the policy terms and the facts of the case.

If your damages were substantially greater, the available UIM policy limits could become an important factor.

What Damages Can Be Included in a Washington UIM Claim?

Depending on the facts of the accident and the policy, damages in a UIM bodily injury claim may include compensation for losses such as:

• Past medical expenses;
• Future medical treatment;
• Lost wages;
• Loss of future earning capacity;
• Pain and suffering;
• Disability or physical limitations;
• Loss of enjoyment of life; and
• Other accident-related damages recoverable under Washington law.

Personal Injury Protection (PIP) coverage may also pay certain medical expenses and wage-loss benefits following an accident, regardless of fault. Learn more in our guide to Personal Injury Protection (PIP) in Washington State.

Why Can Your Own Insurance Company Dispute a UIM Claim?

This is one of the most confusing parts of the UIM process.

You paid premiums for the coverage, and you are making a claim with your own insurer. But that does not necessarily mean the insurer will agree with your valuation of the case.

Depending on the circumstances, a UIM insurer may investigate or dispute issues including:

• Who caused the collision;
• Whether the insured shares some responsibility;
• Whether particular injuries were caused by the accident;
• Whether medical treatment was reasonable or accident-related;
• Whether a pre-existing condition accounts for some symptoms;
• The amount of wage loss;
• The need for future treatment; and
• The overall value of pain, suffering, and other damages.

That can make a UIM claim feel very different from other first-party insurance claims. Your insurer may effectively contest many of the same issues the at-fault driver’s insurance company would have disputed.

Attorney Nick Major previously worked on the insurance-defense side of personal injury cases. That experience gives Nick Major Law firsthand insight into how insurers evaluate claims, medical records, damages, and litigation risk.

Be Careful Before Settling With the At-Fault Driver

If you may have a UIM claim, be careful about signing a release with the at-fault driver before reviewing your own insurance policy.

UIM policies may contain notice, consent, cooperation, or subrogation provisions that need to be considered before the underlying liability claim is resolved.

Signing a broad release without addressing those issues can create unnecessary disputes with your UIM carrier later.

If your injuries appear likely to exceed the other driver’s insurance limits, it is often worth reviewing the UIM issue before the liability settlement is finalized.

Does UIM Cover Hit-and-Run and Phantom Vehicle Accidents in Washington?

Washington’s UIM statute also addresses hit-and-run and phantom vehicles.

A phantom vehicle generally refers to a vehicle that causes an accident without making physical contact with the injured person or vehicle. One example might be a driver who suddenly enters your lane, forcing you off the road, and then leaves the scene.

Washington law imposes special requirements on phantom-vehicle claims. Among other things, the facts must be corroborated by competent evidence other than the testimony of the insured or another person making a UIM claim from the accident, and the accident must be reported to the appropriate law enforcement agency within 72 hours.

Those requirements are contained in RCW 48.22.030.

The Washington Office of the Insurance Commissioner likewise advises drivers involved in hit-and-run or unidentified-vehicle accidents to report the incident to law enforcement and gather witness information when possible.

When Should You Contact a Washington UIM Lawyer?

Not every UIM claim requires an attorney. But legal help may be particularly useful when:

• Your injuries are serious or permanent;
• The other driver’s policy limits are clearly inadequate;
• Your insurer is disputing the value of the claim;
• Your insurer questions whether your treatment is related to the collision;
• There is a dispute over pre-existing conditions;
• You have significant wage loss or future economic damages;
• You have been asked to attend an insurance medical examination;
• The insurer has delayed making a decision or responding to your claim;
• You are considering accepting the at-fault driver’s policy limits; or
• You are unsure whether additional insurance policies may apply.