The Rising Costs of Auto Insurance in Oregon and Washington Make Uninsured and Under Insured Motorist Coverage More Important Than Ever
Washington State and the rest of the country have recently seen car insurance costs spike. While annual rate hikes are the norm, the new numbers suggest unprecedented jumps in costs for drivers. Sadly, those increased costs could lead to more drivers getting behind the wheel without coverage or with minimal coverage. As a result, drivers involved in car accidents may need to become more reliant on their uninsured motorist policies.
Rising auto insurance costs in Oregon and Washington
In 2017, insurance rate increases hit a record rise of 7.1%. Unfortunately, 2023’s rate increase of 24.7% more than tripled the previous record. Some drivers reported specific rate increases, such as:
- A driver whose rates rose 142%, from $660 to $1,600 a year.
- A motorist who rarely drives but saw her rates on two older cars increase 22%.
- A driver with no claims of coverage changes whose rates rose 57%.
The insurance industry claims the cause of rate hikes include inflation, expensive modern vehicle technology, supply chain issues, and a shortage of auto repair facilities and technicians. Whatever the cause, even drivers with clean driving records are feeling the pinch of higher monthly car insurance costs.
Drivers priced out but can’t afford not to drive
There are many reasons for peoples’ budgets to be stretched to the point where sky high insurance costs are out of reach. No one wants the stress of driving without insurance, but more people than ever are making that hard choice.
In 2023, survey results indicated that 8.5% of drivers admitted they didn’t have insurance, an increase from 2022. Some estimates indicate that in Washington, the number of uninsured drivers is closer to 16.5%. With the costly rate hikes, some predict that up to 40% of drivers may soon lack insurance, especially as low-income families may need to choose between essentials like food and rent and car insurance. An increase in food insecurity in the state also highlights how dire the situation is for many locals – one in four residents of Washington now report food insecurity.
The importance of Uninsured/Underinsured Motorist (UM/UIM) coverage
More uninsured or underinsured drivers mean that even those who have strong policies need to be concerned. If you are in an accident caused by an uninsured driver, that person is unlikely to have the personal finances to cover your injuries. Your only pathway to recovering compensation for your injuries and other losses might be your own insurance coverage. Uninsured and underinsured motorist coverage kicks in when the policyholder is in a crash with someone who isn’t insured or who has a policy with limits that will not cover the extent of their injuries. In the case of underinsured drivers, the issue that comes up is that a person might have coverage with a $25,000 limit (the minimum coverage required in Washington), but your injuries in a serious crash could be far higher, even in the hundreds of thousands. Underinsured motorist coverage would allow you to tap into your policy to cover the difference.
In the case of uninsured drivers, your uninsured driver policy could be the only place to get any coverage. If the predictions are true, the chances of other drivers around you on the road being uninsured will be frighteningly high.
Consumer concerns and the future of car insurance
Beyond concerns over crashes with uninsured or underinsured drivers, you should also be cautious about the possibility of losing your own coverage. Insurers may not want to insure higher-risk drivers and could end up making their policies prohibitively expensive for those with tickets or prior crashes on their records. Safe driving should be a priority for anyone who wants to avoid facing particularly high rates or even the loss of coverage.
While there could be some crackdowns or additional regulations on insurance rate hikes, the reality is that the costs are high, and, at least in the short term, the numbers seem to be only going up.
What can I do if I’m in an accident with an uninsured driver?
The State of Oregon requires drivers to carry UM/UIM Coverage. In Washington your insurance provider must offer you UM/UIM coverage, but you are allowed to decline. A waiver of UM/UIM coverage must be in writing and can be signed or e-signed. Unfortunately, many people waive coverage without even knowing it. They only find out when it is too late. At Philbrook Law, Accident and Injury Lawyers, we encourage everyone check their policy before it’s too late. UM/UIM coverage is only a small saving when waived, and never worth the risk.
Do I need an attorney when making a UM/UIM claim?
While you might think that pursuing a claim with your own insurance company would be easier, this isn’t necessarily the case. Unfortunately, your insurance company can become an adversary as they are the ones responsible for covering the costs of your accident. Much as you would expect another party – like a liable driver – to argue that you were at fault or that your injuries are not as severe as you claim, your own insurer may take these stances.
You will likely need an attorney to help you pursue your claim for fair compensation under your uninsured or underinsured motorist policy. It’s important to reach out to a lawyer right away because even what you say to your insurance company immediately after the crash could come back to haunt you. Let your attorney handle communications so that you reduce the chances of saying the wrong thing. Your attorney should also be able to pursue full compensation and negotiate when the company attempts to offer settlements far below your true losses.
Will the uninsured driver face any consequences?
While recovering compensation is often the most important factor in a car accident case, it can be frustrating to see an uninsured driver who caused you injuries face few consequences. However, there are penalties for these drivers. Driving without insurance can result in fines, and in the case of an accident, the uninsured motorist can be held personally responsible for your losses. Still, they often lack the assets to cover those costs. Another consequence is a potential suspension of their license. Driving on a suspended license can lead to jail time, so if they choose to continue driving after their license is suspended, they are taking a huge risk.
Depending on the cause of the accident, other consequences could also exist, such as if they were drunk driving.
Contact us for more information on uninsured motorist claims
Every accident is a traumatic experience, but a crash with an uninsured driver can add an extra layer of frustration and anger. At Philbrook Law, Accident and Injury Lawyers our team is here to support you and answer your questions throughout the process. Reach out to us today to speak with an experienced attorney.
Founding Attorney Matthew Philbrook attended Clark College, Washington State University, and Gonzaga University School of Law. He is a member of the Washington State and Oregon State Bar Associations and started Philbrook Law in 2005. He specializes in Personal Injury, DUI and Criminal Defense cases. Learn more about Mr. Philbrook.