So what happens when you have an insurance policy in WA and get into an accident in OR? Or vice versa? Or any other state? Cases like this can get complicated because of the interplay of different state laws that might impact your case. I highly recommend you reach out to a lawyer if you find yourself in this situation. I practice regularly in WA and OR, and am attempting to get my license in AZ, and so cross border issues arise all the time. But it adds a level of complication to cases.
For example, if you live in WA, and you have a WA policy, Washington law governs your insurance contract because that is the state you contracted in. For PIP (personal injury protection) or UIM (underinsured motorist) claims, your case is likely subject to WA law even if the car accident was in another state. Insurance coverages vary greatly by state. For example, in Oregon, PIP and UIM are required coverages; in WA, they are optional. The general amounts of coverage are similar in WA and OR, but are different in other states. WA has fairly well established bad faith laws, but it is gray area in Oregon. If you have a dispute only with your own policy/coverages, you would generally file in the state you contracted in, but if you cannot resolve your claim with an at fault party stemming from an out of state accident, you may well need to file in the other state. You are subject to the laws of that state as they pertain to torts, auto collisions, statutes of limitations, negligence, traffic laws, etc. Make sure, if at all possible, you have a lawyer familiar with the laws in both states! Consults in this area are almost always free!