Uninsured/Underinsured Motorist (UIM) claims often hinge on understanding and correctly using a “Hamilton” letter — a demand before settling with a third‑party insurer.

Uninsured/Underinsured Motorist (UIM) claims often hinge on understanding and correctly using a “Hamilton” letter — a demand before settling with a third‑party insurer. After you’ve been injured in a collision where the at‑fault driver’s liability insurance is insufficient, your lawyer typically sends a Hamilton letter to your own insurer, offering them the chance to “buy out” the claim by paying what the third‑party carrier is tendering. This preserves the insurer’s right to subrogation and avoids unintentionally voiding your UIM coverage. Washington follows the “floating layer” or excess theory, so your UIM policy is designed to top off your compensation above the at‑fault driver’s limits — but only if these procedural steps are followed correctly. Failing to issue the Hamilton letter before accepting the tortfeasor’s payment can prejudice your claim, possibly costing you tens of thousands in compensation. In practice, this means before settling a $25,000 liability offer, you alert your insurer via the Hamilton letter; then, if they opt not to intervene, you proceed — with your underinsured motorist coverage providing the extra support needed to fully cover your damages.

UIM claims are complicated. If you’ve been injured in an auto collision where the at-fault driver has low insurance policy limits, or no insurance at all, and need legal representation, give us a call at 253.858.5434 to make an appointment for a free initial consultation today.