The Court of Appeals of Washington ruled that an insurer may exclude UIM coverage for third-party passengers who are injured while riding in a covered auto. The case is Thompson v. Progressive Direct Ins. Co., 438 P.3d 533 (Wash. Ct. App. 2019).

Joseph Thompson was a passenger in his friend’s car when the vehicle crashed, injuring Thompson. The friend had purchased auto coverage from Progressive that included both liability and UIM coverage. Following the accident, Progressive paid Thompson the $100,000 liability limit under his friend’s bodily injury coverage. Thompson, however, said the payment was insufficient to cover the costs associated with the injuries he had suffered and filed a third-party claim under the UIM portion of his friend’s coverage.