Types of Auto Insurance Coverage in WA
Each type of insurance coverage protects you against a different type of risk. The most common types of automobile insurance coverage in Washington State are:
- Liability
- PIP
- UM/UIM
- Collision
- Comprehensive
Liability Insurance
Liability is legal fault. Your liability insurance is mandatory insurance protection against your legal fault. Washington State law requires that all drivers have liability insurance. Individuals involved in motor vehicle accidents (MVAs) can be held legally at fault and thus financially responsible for the consequences of an accident, including property damage, injuries to passengers and drivers, and fatalities. The severely injured or families of fatality victims may seek damages in civil court, often for well in excess of the value of insurance. Fault can lie entirely with one person, or the fault may be spread among several people. Liability insurance protects the insured if they are at fault. Liability insurance pays injured persons for their bodily injury and property damage up to the amount of the specified liability coverage.
PIP Insurance
Personal Injury Protection (PIP)is optional insurance that covers, within a policy’s specified limits, the reasonable and necessary medical, hospital, and funeral expenses of the insured, other persons in the insured’s vehicles, and pedestrians struck by the insured.
In Washington State, you can choose between $10,000 and $35,000 limits. Payment is limited to the specified amount per person that occurs within three years of the covered accident.
PIP can also include:
- Income Continuation – recovers lost wages for up to a year. 85% of your weekly income up to $200 per week or $700 per week (whichever is less).
- Substitute Services – help to perform household or other tasks due to accident-related injuries. $40 per day / $200 per week / Max $5,000 / Up to a Year from the Incident.
- Funeral Expenses – $2,000.
UM/UIM Insurance
Uninsured/underinsured Motorist coverage (UM/UIM) provides coverage for the insured if an at-fault party either does not have any insurance (UM) or does not have enough insurance (UIM).
Collision Insurance
Optional insurance coverage for an insured’s vehicle involved in an accident. It is likely subject to a deductible. It provides payments to repair the damaged vehicle or pays the vehicle’s market value if that value is less than the estimated repair bill.
Comprehensive Insurance
(a.k.a. – Other Than Collision) provides insurance coverage, subject to a deductible, for an insured vehicle damaged by incidents that are not considered Collisions. For example, fire, theft (or attempted theft), vandalism, weather, or impacts with animals are types of Comprehensive losses.
What Insurance is Mandatory in Washington State?
The only type of mandatory automobile insurance coverage is liability insurance. In Washington State, you cannot legally drive without liability insurance coverage. All other types of auto insurance are optional.
Liability insurance covers claims against the policyholder and, generally, any other operator of the insured vehicles, provided they do not live at the same address as the policyholder and are not specifically excluded from the policy. In the case of those living at the same address, they must specifically be covered on the policy. Liability insurance may or may not protect the policyholder if they operate a vehicle other than their own; you must read your policy to know.
When someone buys a car on credit, the bank may require the purchaser to carry collision coverage.
Myth of “Full Coverage”
- Full coverage does not mean anything! Persons who say they have full coverage usually don’t understand the complexity of insurance coverage. It is more accurate to say I have insurance on vehicle (X), with (Y) coverages in (Z) amounts…
The Amount of Insurance Coverage
- Each type of insurance has a dollar amount of coverage. The dollar amount is the amount of protection the insured has. For example, the minimum mandatory liability insurance is $25,000/50,000. This means the liability protection for the insured is $25,000 per person, with a $50,000 per accident maximum.
What to Do if You Are Involved in an Automobile Accident
- Write down an accurate account of the accident as soon after the accident as possible.
- Call the police and/or file a police report.
- See a doctor right away if you are or may be injured.
Aspects of Automobile Claim
- Personal Injury – Injury to the body or mental health.
- Property Damage – Damage to your car or other driver’s car.
- Wage Loss – Any wages lost due to time missed from work because of the automobile accident.
- Medical – Any treatment bills related to injuries sustained in the automobile accident.
Want More Information About Insurance Coverage?
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