I have encountered many clients who are not aware of the details of their auto insurance coverage. It is crucial to understand which coverage options to include in your policy and which may not be necessary based on your specific circumstances. Here is a brief overview of auto insurance. Auto insurance is required for drivers in Washington state. Washington state law requires that all drivers carry liability insurance coverage in the event of an accident, but there are other types of auto insurance coverage that drivers may want to consider to provide additional protection.
Here are the types of auto insurance coverages available in Washington state:
1. Liability Insurance
Liability insurance is required by law in Washington state. It covers damages and injuries that you cause to others in an accident. There are two types of liability coverage: bodily injury and property damage. Bodily injury liability coverage pays for medical expenses and lost wages for the other party in the accident, while property damage liability covers the cost of repairing or replacing the other party's vehicle or property. The minimum liability limit is $25,000 per person or $50,000 per accident.
2. Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured motorist coverage (UIM) protects you if you're involved in an accident with a driver who doesn't have insurance or doesn't have enough insurance to cover your losses. In Washington state, uninsured/underinsured motorist coverage is required, but you can opt out of the coverage in writing. With rising insurance rates and cost of living, there are more uninsured drivers on the road, which is why it is crucial to add UIM coverage to your policy. Additionally, most people choose the minimum policy limit of $25,000/person and $50,000 per accident, which is often insufficient to cover everybody’s medical expenses, wage loss and other damages, especially if there are several injured victims in the car accident.
3. Personal Injury Protection (PIP)
Personal injury protection, or PIP, is a type of insurance that covers medical expenses and lost wages for you and your passengers in the event of an accident, regardless of who is at fault. In Washington state, PIP coverage is not required. The insurance company must offer it to you, and you may opt out of the coverage in writing. This is a great auto insurance coverage to have if you want to ensure that your medical bills are covered regardless of who is at fault for the collision.
4. Collision Coverage
Collision coverage pays for the cost of repairing or replacing your own vehicle if you're involved in an accident with another vehicle or object. This coverage is not required by law in Washington state, but is likely required if you have a car loan or lease.
5. Comprehensive Coverage
Comprehensive coverage protects your vehicle from damage that occurs outside of an accident, such as theft, vandalism, or natural disasters like hail or a falling tree. This coverage is not required by law in Washington state, but it may be required if you have a car loan or lease.
6. Rental Car Coverage
Rental car coverage provides coverage for a rental car if your vehicle is being repaired after an accident. This coverage is optional in Washington state, but it may be a good idea if you rely on your vehicle for transportation.
7. Towing Coverage
Towing coverage provides coverage for the cost of towing your vehicle and other labor costs if your vehicle breaks down or is disabled. This coverage is optional in Washington state, but it may be helpful in the event of an emergency.
8. Gap Insurance
Gap insurance provides coverage for the difference between the actual cash value of your vehicle and the amount you owe on your car loan or lease if your vehicle is totaled in an accident. This coverage is optional in Washington state, but it may be required if you have a car loan or lease. Most brand new vehicle lose a lot of value after you drive it away from the dealership. As a result, most car loans often exceed the value of the vehicle right before the collision. Without this gap insurance, people sometimes face not only losing their vehicle, but also being on the hook for the remaining amount of the loan.
It's important to note that each type of auto insurance coverage may have limits and exclusions, so review your policy carefully. In conclusion, there are several types of auto insurance coverage available to drivers in Washington state, and while liability insurance is required by law, it's important to consider additional coverage options to provide comprehensive protection for yourself and your vehicle. Review your auto insurance policy today to ensure you have the right coverage for your needs.