If you plan to drive in Washington, you should understand the state’s insurance laws. If you don’t, you risk a run-in with the law, fines, losing your license, getting jerked around by insurance companies, and paying out-of-pocket for damages in an accident.
What are the minimum insurance requirements in Washington State?
All drivers are legally required to carry a minimum level of LIABILITY insurance. If you are at fault for an accident, liability insurance will give you the means to cover at least some of the other party’s damages.
The minimum required liability coverage amounts are:
- $25,000 for bodily injury or death of one person.
- $50,000 for bodily injury or death of two or more people.
- $10,000 for property damage.
If you don’t have coverage that meets these minimum requirements, you could face fines, license suspension, and substantial payouts if you’re involved in an accident.
What insurance coverage is optional in Washington State?
Additional optional types of auto insurance coverage provide more comprehensive protection in case of an accident or other incidents. These optional coverages include:
- Personal Injury Protection (PIP) covers medical expenses, lost wages, and other costs for you and your passengers, regardless of who is at fault.
- Uninsured/Underinsured Motorist insurance protects you if you’re involved in an accident with a driver who either doesn’t have insurance or whose coverage isn’t enough to cover your damages.
- Collision insurance covers damage to your insured vehicle involved in an accident with another car, a roadside object, or a highway defect such as a pothole.
- Comprehensive insurance covers loss due to non-accident-related damage, such as theft, vandalism, deer, or natural disasters.
What is SR-22 insurance?
In Washington, an insured driver may be required to file an SR-22 if they’ve been involved in certain traffic violations, such as driving under the influence (DUI), driving without insurance, or having a suspended license.
SR-22 insurance is a certificate that proves a driver has the required liability insurance. It typically comes with higher premiums due to the increased risk profile of the drivers who need to file it.
Once required, you must maintain the SR-22 for at least three years.
If you fail to maintain the necessary coverage during this period, your insurer will notify the state, which can result in further penalties, including suspension of your driving privileges.
Are there circumstances that require me to have special coverage?
Certain circumstances require drivers in Washington to have specific insurance:
- Rideshare Drivers (Uber, Lyft, etc.) must carry additional insurance beyond their personal auto coverage. Companies like Uber and Lyft provide insurance while their drivers are actively transporting passengers or driving to pick someone up.
- Commercial Drivers: Commercial drivers, including truckers and delivery drivers, must carry higher liability limits and specialized commercial insurance to protect against risks associated with their jobs.
- Out-of-State Drivers: Drivers who move to Washington must ensure their auto insurance complies with the state’s minimum liability requirements. Out-of-state insurance policies often don’t meet Washington’s standards for long-term residents, so out-of-state drivers may need to update their coverage to avoid penalties.
What are the penalties for driving without insurance?
Don’t do it. Driving without insurance in Washington will lead to significant penalties. If you’re caught operating a vehicle without the required minimum insurance coverage on an approved self-insurance plan, you could face
- A fine of up to $550.
- The Washington State Department of Licensing may suspend your driver’s license or vehicle registration until you provide proof of insurance.
- If you’re involved in and at fault for an accident while uninsured, you’ll incur financial responsibility for damages, including medical bills, property damage, and legal fees.
- Even if you’re not at fault in an accident, being uninsured can make it harder to recover damages from the other driver.
What important insurance company rules do I need to know about?
When you’re dealing with insurance companies, there are several important rules you need to be aware of to avoid complications and ensure your claims are handled correctly.
- Insurance companies require you to report an accident as soon as possible, typically within 24-48 hours. Delaying can result in delay or the denial of your claim.
- Insurers are legally obligated to investigate claims promptly. Failure to do so could be considered bad faith.
- When purchasing or renewing your policy, providing truthful and complete information is essential. Misrepresentation can lead to denial of coverage or policy cancellation.
- Some insurers offer a grace period if you’re late on a payment, but this varies by company. If the grace period expires without payment, your coverage will be canceled.
- Even if you’re not at fault, your premiums may increase depending on the circumstances of the accident and your insurer’s policies. Some insurers offer accident forgiveness to prevent premium hikes.
- Review your policy for exclusions—specific incidents that aren’t covered. For instance, some policies exclude youthful drivers from coverage.
- Your insurance company requires full cooperation during the claims process. Failing to cooperate could result in claim denial, but be careful and don’t give away the farm. Talk with a lawyer if you don’t know what to do.
- Insurance companies can cancel or refuse to renew a policy under certain conditions, such as non-payment or fraud.
What are my insurance companies’ responsibilities?
Be careful what insurance company paperwork you sign.
Insurance companies are supposed to follow specific rules in Washington, at least on paper. They’re required to:
- Investigate Claims Promptly: They’re supposed to look into accidents quickly and figure out who’s at fault. But don’t hold your breath—delays are more common than you’d think.
- Pay Legitimate Claims Fairly and Without Delay: Once insurers determine who’s responsible, they must pay and without delay.
- Communicate Clearly with Policyholders: They are supposed to keep you in the loop about what’s happening with your claim. But many people are left chasing their insurance rep to get a simple answer.
The reality of how an insurance company will act after an accident
In reality, things rarely go smoothly:
- Delays in Investigations and Payments: Don’t be surprised if your insurance agent drags your claim on for weeks or months. Insurance companies are experts at stalling to avoid paying out right away.
- Attempts to Undervalue Claims: When they finally offer a payout, expect it to be low. They’ll downplay the cost of your repairs, medical bills, and anything else they can to save themselves money.
- Poor Communication: You may spend more time leaving voicemails and sending unanswered emails than getting help.
The bottom line is insurance companies aren’t on your side. If they’re dragging their feet or offering less than you deserve, getting legal representation is your best shot at holding them accountable and ensuring you get the compensation you’re owed.
How do I handle insurance disputes that involve bad faith claims?
Your own insurance company is legally required to act in good faith, meaning they must handle claims honestly and fairly. However, that doesn’t always happen.
Bad faith occurs when your insurer deliberately delays or denies a legitimate claim, misrepresents the policy terms, or fails to investigate an accident properly. It includes:
- Unjustified Denial of Claims: Your claim is denied for a reason that doesn’t make sense or wasn’t clearly stated in your auto insurance policy.
- Failure to Investigate: The insurance company drags its feet on investigating your claim or doesn’t investigate it at all.
- Lowball Settlements: They offer a settlement far below what your claim is worth, hoping you’ll accept less to get the process over with.
When an insurance company acts in bad faith, it can be held accountable under Washington law. You may be able to file a lawsuit against the insurer to recover the compensation you’re owed, along with potential damages for their bad behavior.
If you suspect your insurer is acting in bad faith, consult with a car accident lawyer who can help you navigate the process and fight for your rights.
When should I seek legal assistance from a Seattle car accident attorney?
There are several scenarios where seeking legal assistance is helpful and necessary to protect your rights and ensure you get the compensation you deserve.
- If the other party or their insurance company is disputing who’s at fault, a lawyer can evaluate what they say, gather evidence, negotiate with the insurers, and help prove your case.
- If your injuries or property damage exceed the other driver’s insurance coverage, a lawyer can assist in pursuing additional compensation through lawsuits or underinsured motorist coverage.
- If an uninsured driver hits you, collecting compensation can be difficult. An attorney can help explore your options, including tapping into uninsured motorist coverage or pursuing the driver personally.
- If an insurance company unfairly denies your claim, offers a lowball settlement, or delays payment, legal representation can ensure the company is held accountable and that you receive fair compensation.
Hiring an experienced attorney can make the difference between a drawn-out, frustrating claims process and receiving timely, fair compensation.
Call or write for more answers about Washington auto insurance laws
Understanding Washington’s auto insurance laws is essential for protecting yourself on the road. If you’re facing an insurance dispute, dealing with an uninsured driver, or suspect your insurer is acting in bad faith, you don’t have to handle it alone.
Call or write today for a free consultation. Experienced attorneys will fight to ensure you receive the compensation you deserve.
FAQs – What Do I Need to Know About Washington State Auto Insurance Laws?
What does Washington’s fault-based system mean for car accidents?
Washington operates under a fault-based system. Drivers determined to be at fault for an accident are responsible for covering the damages. Drivers in Washington can file a claim directly with the at-fault driver’s insurance, sue the at-fault driver, or file a claim with their own insurance if necessary.
How does Washington’s comparative fault rule affect my compensation in an accident?
Under Washington’s comparative fault rule, multiple parties can be held partially responsible for an accident. Your compensation will be reduced by your percentage of fault—for example, if you’re found to be 25% at fault, your total compensation will be reduced by 25%. Even if you’re partially at fault, you can still recover damages, but the amount will be adjusted based on your degree of responsibility.
Does Washington require drivers to carry proof of insurance at all times?
Yes, drivers in Washington must carry proof of insurance in their vehicles or on their person. If they’re pulled over or involved in an accident, they must present their insurance information or insurance card. Failure to provide proof of insurance can result in fines and other penalties.
What happens if I’m injured in an accident caused by a hit-and-run driver?
If you’re injured in a hit-and-run accident, you may be able to use your uninsured motorist coverage to recover damages. This coverage can help pay for medical bills and property damage when the at-fault driver is unknown or cannot be located.
Can I use insurance from another state if I move to Washington?
That depends. You need to inform your insurance company. You must update your car insurance to meet Washington’s minimum liability requirements. Out-of-state insurance policies sometimes don’t meet the standards set by Washington law. You need to update your coverage as soon as you become a resident.
What should I do if I’m in an accident with an uninsured driver?
If you’re involved in an accident with an uninsured driver, you can still seek compensation through your own uninsured/underinsured motorist coverage. Additionally, you may be able to pursue the uninsured driver personally for damages, though collecting can be difficult.
What is Washington’s statute of limitations for car accident claims?
In Washington, you have up to three years from the date of a car accident to file claims related to personal injury, property damage, or wrongful death. However, insurance companies typically require earlier notification, sometimes within a few days, to ensure they can adequately investigate. If you don’t report the accident to your insurer immediately, it could affect your ability to file a claim or get coverage, so it’s crucial to inform them promptly.
