Functional interval observer of dynamical switched systems provides significant advantages in practical applications. In view of the enlarged order of interval observers, applying interval functional observers can result in lower computational costs and more practicability in some applications such as output feedback control and fault diagnosis of these systems. In this paper, an unknown input functional state interval observer design for a class of switched uncertain systems is investigated. Necessary and sufficient conditions for observer existence are derived. Based on Input to State Stability (ISS) principle and Lyapunov theory, the stability and positivity conditions for the estimation errors are expressed in terms of Linear Matrix Inequalities. A design procedure algorithm of the state observer is given. Finally, the proposed estimation methodology is applied to vehicle lateral velocity estimation problem. Simulation results obtained, confirm the good accuracy and robustness of the proposed state estimation concept.