Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Business & Financial Services Committee

HB 2827

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Requiring minimum liability insurance coverage for certain towing expenses.

Sponsors: Representative Kirby.

Brief Summary of Bill

  • Adds an automobile insurance minimum liability requirement of $5,000 for third party expenses, such as towing, recovery, and storage that are the result of any one accident.

Hearing Date: 1/24/18

Staff: Robbi Kesler (786-7153).

Background:

Financial Responsibility For Motorists.

Proof of financial responsibility means proof of the ability to respond to damages where a driver or owner is liable. Unless exempt, the driver or owner of a motor vehicle subject to registration who is involved in an accident within Washington that results in bodily injury, death, or property damage must provide a security deposit. The requirement to provide a security deposit does not apply to drivers or owners of a motor vehicle with a valid automobile liability insurance policy.

Motor vehicle insurance policies issued must provide the following minimum liability in any one accident:

Summary of Bill:

The minimum liability for automobile insurance policies is amended to include a $5,000 minimum for third party expenses, such as towing, recovery, and storage that are the result of any one accident.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.