Vehicle Insurance: Washington's Guide

If you're looking to insure your vehicle in Washington, there are a few things you should know. Firstly, car insurance is mandatory in Washington, and the minimum coverage level you'll need includes liability insurance with the following limits: Bodily Injury: $25,000 per person and $50,000 per accident, and Property Damage: $10,000 per accident. You can also opt for additional coverage, such as Personal Injury Protection (PIP), Rental Car Reimbursement, and Uninsured Motorist Bodily Injury. When choosing an insurance company, it's worth comparing quotes from different providers, as rates can vary significantly. Factors that can affect your premium include your age, driving history, and location. It's also worth noting that Washington has banned the use of credit history in the underwriting process, so this won't impact your premium.

Understanding your policy

Understanding your vehicle insurance policy is essential to ensuring you have the necessary protection if you get into an accident. Auto insurance policies are legal contracts filled with jargon that can be confusing to understand. However, by familiarizing yourself with the key components and terms, you can make informed decisions about your coverage.

Firstly, let's break down the important elements of your policy:

• Premium: This is the amount you pay for your coverage, with payments typically set on a monthly, quarterly, or semi-annual basis. The premium amount is influenced by factors such as your age, driving record, vehicle type, and location.
• Deductible: The deductible is the amount you pay out of pocket before your insurance coverage kicks in. A higher deductible usually leads to lower rates, while a lower deductible results in higher rates.
• Coverage amounts: These are the maximum amounts your insurance will pay out per accident or claim. It's important to understand the coverage limits for different aspects, such as bodily injury, property damage, and medical payments.
• Claim filing: Your policy will outline the directions on how to file a claim. Knowing this process beforehand will help you take the necessary steps in the event of an accident.

Now, let's delve into the different types of coverage available:

• Liability coverage: This is mandatory in most states and includes bodily injury liability and property damage liability. It covers the costs associated with injuries, death, or damage to another person's vehicle or property caused by you or another driver operating your car.
• Medical Payments or Personal Injury Protection (PIP): PIP is mandatory in states with no-fault accident laws. It covers medical expenses, lost wages, and other related costs for you and your passengers, regardless of who is at fault in the accident. Medical Payments coverage is similar but more limited in scope.
• Uninsured/Underinsured Motorist Coverage: This protects you when you're in an accident with a driver who doesn't have insurance or doesn't have enough insurance to cover the damages. It typically includes uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD).
• Collision Coverage: This covers damage to your vehicle resulting from a collision with another vehicle or object, regardless of fault. It doesn't cover mechanical failure or normal wear and tear.
• Comprehensive Coverage: This covers damage to your vehicle caused by incidents other than collisions, such as natural disasters, fire, vandalism, or contact with animals. It also includes glass coverage for windshield damage.

When reviewing your policy, pay close attention to the declarations page, which outlines your coverage, insured drivers, vehicles, and more. Additionally, familiarize yourself with the definitions section to understand key terms and who/what is covered. Be mindful of any exclusions or restrictions that may impact your claims.

Remember, insurance requirements and options vary by state, so it's essential to review Washington-specific regulations when crafting your policy.

Minimum insurance requirements

Washington state law requires all drivers to carry liability insurance and proof that they have insurance. The minimum amount of Washington auto insurance coverage is $25,000/$50,000/$10,000. In the event of a covered accident, your limits for bodily injury are $25,000 per person, with a total maximum of $50,000 per incident. It also covers up to $10,000 for damage to another person's property.

Liability coverage provides for your legal defence if a lawsuit is brought against you as a result of a covered accident. As a resident of Washington, there are two types of liability coverage your insurance policy must include: property damage and bodily injury.

Property damage liability coverage safeguards your assets if you are found legally responsible for a covered accident. It covers damage you may cause to the property or vehicle of another party.

Bodily injury liability coverage safeguards your assets if you are found legally responsible for a covered accident, including certain expenses associated with bodily harm sustained by the other parties.

Motorcycle drivers in Washington are no longer exempt from the state's mandatory auto insurance law. As of July 28, 2019, they are required to carry liability coverage and proof of insurance.

There are other ways to assume financial responsibility for damages in Washington, instead of purchasing liability insurance. These include:

• Applying for a certificate of deposit to pay for your liability insurance with the Department of Licensing.
• Having a liability bond of at least $60,000 filed by a surety bond company that's authorized to do business in Washington.
• Self-insuring if you have 26 or more vehicles.

Optional coverages

When it comes to vehicle insurance in Washington, there are several optional coverages you can consider adding to your policy for enhanced protection. These optional coverages provide additional benefits and peace of mind beyond the state's minimum liability requirements. Here is a detailed overview of some common optional coverages:

• Comprehensive Coverage: This type of physical damage coverage protects your vehicle from non-collision incidents, such as theft, fire, vandalism, glass breakage, or encounters with animals. It is particularly relevant if your vehicle holds significant value or is financed/leased, as lenders typically require comprehensive coverage to protect their investment. Comprehensive coverage ensures you're not left financially vulnerable in the event of non-collision-related damages.
• Collision Coverage: Collision coverage is complementary to comprehensive coverage and focuses on physical damage resulting from collisions with other vehicles or stationary objects. Similar to comprehensive coverage, it is often required by lenders and leasing companies to protect their investment. By adding collision coverage, you safeguard yourself from unexpected repair costs due to accidents.
• Uninsured/Underinsured Motorist Coverage: This coverage is essential in Washington, which ranked 5th in 2020 for the most uninsured drivers. It protects you if you're in an accident with a driver who has insufficient or no insurance to cover your expenses. This coverage ensures that you're not left financially burdened by another driver's lack of insurance.
• Medical Payments/Personal Injury Protection (PIP): Medical payments coverage or PIP helps pay for medical expenses incurred by you and your passengers in an accident, regardless of who is at fault. This coverage ensures that you and your passengers can receive the necessary medical treatment without worrying about out-of-pocket expenses.
• Rental Car Reimbursement: If your car is in the shop for repairs after an accident, this coverage provides reimbursement for a rental car or alternative transportation expenses. This add-on ensures that you remain mobile and can continue your daily activities while your vehicle is being repaired.
• Roadside Assistance: Roadside assistance coverage offers help in various situations, such as flat tires, dead batteries, and towing services. It provides peace of mind when you're on the road, knowing that you have access to assistance if your vehicle breaks down or encounters minor technical issues.
• Loan/Lease Payoff (Gap Coverage): Gap coverage is crucial if you owe more on your car loan than your vehicle's current value. In the event of a total loss, this coverage pays off the remaining loan amount, protecting you from continuing to make payments on a vehicle you can no longer use.

Remember, while these coverages are optional, they can provide valuable financial protection and peace of mind. Assess your individual needs, the value of your vehicle, and your risk tolerance to determine which optional coverages align with your situation. Discuss your options with your insurance agent to create a personalized policy that offers comprehensive protection.

Discounts

There are a variety of discounts available for vehicle insurance in Washington. Many insurance companies offer discounts for safe driving, being a student, and bundling insurance policies.

Safe Driving Discounts

Safe driving discounts are available for those with a clean driving record, those who have had no moving violations or at-fault accidents for a certain number of years, and those who take a defensive driving course. The specific criteria for these discounts vary depending on the insurance company. For example, State Farm requires drivers to have no at-fault accidents or moving violations in the three years prior to applying the discount, while Nationwide requires at least five years of safe driving.

Student Discounts

Insurance companies such as State Farm and Nationwide offer discounts for students who are full-time students and maintain good grades. State Farm's student discount applies to drivers under 25 who are full-time students in high school or at a college or university and meet at least one of the following scholastic requirements:

> - Ranked scholastically in the upper 20% of his or her class

> - Had a grade average of B or higher

> - Had a grade point average of 3.0 (out of 4.0) or higher

> - Made the Dean's List or Honor Roll

Nationwide's student discount applies to drivers age 16 to 24 who maintain a B average or better and are full-time students.

Multi-Policy Discounts

Bundling multiple policies with the same insurance company can also lead to discounts. For example, Nationwide offers a discount for bundling car insurance with home, renters, boat, or multi-car insurance. State Farm also offers a multi-line discount for customers who are the named insured on a qualifying State Farm home, renters, condo, life, or health policy.

How to file a claim

If you've been in a car accident in Washington, you may need to file an insurance claim. Here's a step-by-step guide on how to do this:

Step 1: Contact Your Insurance Company

Gather any paperwork pertaining to the accident, including the police accident report, medical bills from your injuries, and any quotes from an auto mechanic. You will also need your insurance policy, as this will contain instructions on how to file a claim.

Step 2: File a Police Report

In Washington, the law requires a Motor Vehicle Collision Report for any accident that results in bodily injury or property damage exceeding $1,000. If the police are called to the scene, the responding officer will make and file the report. If the police are not called, it is your responsibility to file the report.

Step 3: Review Your Policy's Coverages and Deductible Selections

You can make a car insurance accident claim for injuries you sustained, any harm that came to a passenger, or damage sustained by your vehicle, even if there were no serious injuries. Depending on the type of claim you make and the terms of your insurance coverage, you could be entitled to payments for medical expenses, wage loss, vehicle repair, and other compensation.

Step 4: Work with Your Insurance Adjuster

After you file a claim, your insurance carrier assigns an insurance adjuster to process it. Their job is to investigate the claim and determine whether the damage is covered under your policy, and whether another party caused the accident and is therefore responsible for the damages. When the adjuster contacts you, simply state the facts and avoid long narratives or explanations. All communications with the insurance adjuster will be used as part of the claims evaluation process, including determining who is at fault.

Step 5: Get Your Car Repaired

Your insurance company may have a list of preferred auto repair shops, but you are not required to go to a particular mechanic. However, there are benefits to going to an insurance-authorized body shop. The insurance company pays them directly, and if there is damage beyond their initial estimate, the additional repairs will usually be approved more quickly.

Step 6: Finalize Your Insurance Payout

Once your car is repaired, your insurance company will either pay the mechanic directly or cut you a check (which you are then responsible for paying to the mechanic). Next, you sign a release agreeing not to pursue further claims from the accident.

Additional Tips:

• It is important to file your claim as early as possible to maximize your settlement and ensure there is little reason for the insurance company to deny it.
• If the other driver is at fault, their insurer may offer rental car coverage. If you are at fault, check your policy to see if you have rental car coverage.
• If you are filing a claim with the other driver's insurance company and don't know how to proceed, a car accident lawyer can guide you through the process.

Frequently asked questions