Underinsured motorist (UIM) coverage is a critical, often misunderstood component of auto insurance policies in Washington State. It serves as a financial safeguard when an at-fault driver’s liability limits are insufficient to cover the full extent of your damages. For a Washington lawyer, handling a UIM claim is a complex, multi-stage process that demands a meticulous understanding of insurance law, contract interpretation, and aggressive litigation tactics. The journey from initial client consultation to potential jury verdict is governed by specific statutes and court rulings that create a unique legal landscape.
The foundation of any UIM claim is established under RCW 48.22.030, the Washington statute mandating UIM coverage. Crucially, Washington is an “add-on” state for UIM coverage. This means your UIM coverage stacks on top of the at-fault driver’s liability limits. For example, if you have $100,000 in UIM coverage and the at-fault driver has a $25,000 policy, your total available recovery potential becomes $125,000. However, accessing these funds requires navigating a precise legal procedure where errors can be fatal to a claim.
The initial phase involves a comprehensive investigation that extends far beyond the accident itself. A Washington lawyer must first secure the at-fault driver’s policy limits, typically by making a formal request to their insurance company. Simultaneously, the attorney conducts a thorough review of the client’s own insurance policy, including all declarations pages, endorsements, and the full policy wording. This review is essential to confirm the existence of UIM coverage, determine the available limits, and identify any potential exclusions or other relevant coverages like Personal Injury Protection (PIP) or MedPay.
A pivotal early decision involves the settlement with the at-fault driver’s insurer. Washington law, particularly the “Cavanaugh” Supreme Court decision, requires a UIM insurer to be given notice and an opportunity to protect its subrogation interests before its insured settles with the tortfeasor. In practice, this means your lawyer must send a formal written notice to your own UIM carrier before accepting any settlement offer from the at-fault party’s insurance company. This notice must include copies of all pertinent documentation, such as medical records, demand packages, and the specific settlement offer. The UIM insurer then has a right to advance payment to its insured (you) to preserve its subrogation claim against the at-fault driver. If this procedural step is not followed precisely, the UIM carrier can legally deny coverage for the entire claim.
Once the at-fault driver’s policy is exhausted—either through a settlement that follows the Cavanaugh process or a judgment—the formal UIM claim process begins. The lawyer will submit a detailed demand package to the UIM insurance adjuster. This package is a comprehensive compilation of evidence designed to prove both liability and damages. It includes the police report, witness statements, photographic evidence of the collision and injuries, a full set of medical records and bills, expert reports (e.g., from treating physicians, vocational experts, or economists), and a powerful narrative demand letter that quantifies all economic and non-economic damages.
A unique and often contentious aspect of Washington UIM law is the role of “consent” judgments. If the UIM insurer disputes the value of the claim or refuses to offer a fair settlement, your lawyer may propose a RCW 7.60 “confession of judgment” procedure with the at-fault driver. In this scenario, the injured party (the plaintiff) and the at-fault driver (the defendant) agree to a stipulated judgment that exceeds the defendant’s policy limits. The at-fault driver then assigns their rights against their own insurer (for bad faith) to the plaintiff, and in exchange, the plaintiff agrees to only execute the judgment against the UIM carrier. This tool creates significant leverage but requires judicial approval and is fraught with strategic complexity.
Negotiation with the UIM adjuster is a central part of the process. However, these negotiations occur in the shadow of a critical legal reality: your UIM insurer owes you a duty of good faith and fair dealing. This duty, established under Washington common law, means the insurer must thoroughly investigate the claim, evaluate it fairly, and not place its own financial interests above those of its insured. An insurer that acts in bad faith—by unreasonably denying a claim, delaying payment without justification, or offering a settlement amount significantly below the reasonable value of the claim—can be sued for not only the underlying UIM benefits but also for extra-contractual damages, including emotional distress, attorneys’ fees, and even treble damages under the Washington Insurance Fair Conduct Act (IFCA).
When a settlement cannot be reached through negotiation, the Washington lawyer must initiate arbitration or litigation. Most UIM policies contain arbitration clauses, making that the prescribed method for resolving disputes. Arbitration is a private, binding proceeding where a neutral arbitrator or panel hears evidence and renders a decision. The lawyer must prepare for arbitration with the same rigor as a jury trial, including developing a compelling theme, preparing exhibits, deposing expert witnesses, and crafting opening and closing statements. The arbitrator’s award is typically final and binding, with very limited grounds for appeal.
If the policy does not mandate arbitration, or if a specific legal issue requires court intervention, the lawyer will file a lawsuit against the UIM insurer in superior court. This litigation proceeds like any other civil suit, with discovery, motions practice, and a potential jury trial. At trial, the lawyer must prove the at-fault driver’s negligence was the proximate cause of the accident and articulate the full extent of the client’s damages, both economic (medical expenses, lost wages, loss of earning capacity) and non-economic (pain and suffering, emotional distress, loss of enjoyment of life).
Throughout the entire UIM claims process, a Washington lawyer must also be vigilant about potential offsets. The policy may allow the insurer to reduce its payout by amounts received from other sources, such as the at-fault driver’s liability payment, worker’s compensation benefits, or possibly even PIP payments, depending on the policy language and specific circumstances. Navigating these offsets requires a precise understanding of contract law and the ability to argue against their application when appropriate.
The valuation of damages is the core of the claim. A skilled attorney doesn’t just add up medical bills. They work with medical experts to establish a future treatment plan and associated costs, with vocational experts to demonstrate a loss of earning capacity, and with economists to present a present-value calculation of future losses. They also dedicate significant effort to humanizing the client’s experience, translating intangible suffering into a compelling narrative a claims adjuster or arbitrator can understand. This involves detailed client interviews, family testimony, and the use of day-in-the-life videos or diaries to illustrate the profound impact of the injuries.
Handling a UIM claim in Washington is a high-stakes adversarial process against a sophisticated opponent—your own insurance company. It is not a simple matter of filing paperwork. It demands a strategic, detail-oriented approach from a legal professional who understands the intricate interplay between statute, contract, and case law. From the crucial Cavanaugh notice to the final resolution via settlement, arbitration, or trial, every step must be executed with precision to protect the client’s rights and maximize their recovery after a devastating collision with an underinsured motorist.
