Answering questions about your auto insurance
Auto insurance costs are expected to rise this year in Washington.
ValuePenguin’s annual report, released on January 3, predicts an 18% increase in car insurance costs in the Evergreen State in 2024.
Washington, however, still has lower monthly average premiums that most of the country. The national average is $165 a month; Washington clocks in at $128, a far cry from $386 in Michigan (the highest in the nation) and $249 in Florida (the second highest).
Here’s a few popular questions to help understand your car insurance costs.
Why are my premiums going up?
Essentially, insurance rates (and, thus, premiums) go up when the costs involved with repairing or replacing cars goes up. Inflation has certainly been part of it the last year or two. Repairs are more expensive and are taking longer, and claims have been taking longer to process. It all adds up to more expenses for insurance companies.
What’s the Insurance Commissioner doing about it?
We think you deserve an answer when your insurance company raises the cost of your insurance, so we introduced a rule that requires them to be more transparent when they raise premiums.
Does the Insurance Commissioner approve these increases?
Insurance companies doing business in Washington have to get any rate changes approved with our office (whether it’s an increase or a decrease). The companies have to justify their rate changes by showing our actuaries what they’ve paid out for claims and expenses and what they collect in premiums, and then projecting that into the future. If expenses are outpacing premiums, they file a rate change with us.
Are my premiums higher because there’s more crime in my area?
Probably not. Insurance companies can file rate changes specific to a certain location, but it’s more complex and that makes the review process with our office take longer.
Why wasn’t the policy on my Kia or Hyundai renewed?
Insurance companies have experienced a substantial increase for claims for Kia and Hyundai vehicles due to the manufacturer not including safety features. Even if your vehicle was updated with the companies’ anti-theft software and safety features, thieves may try to steal it. This means a higher number of claims and claim payments for that make and model.
Insurance companies have the right to underwrite a risk to determine if the person and vehicle qualifies for coverage with that company, and some of them have declined to renew comprehensive coverage policies on certain Kia and Hyundai models.
If your policy wasn’t renewed and you’re looking for coverage, the state legislature created the assigned risk auto program to cover hard-to-insure drivers. It’s accepting Kia and Hyundai vehicles with a maximum value of $30,000.
How can I keep my costs down?
A few tips to keep your premiums lower:
- Shop around or check with your agent to see if you qualify for any discounts.
- Consider going with a higher-deductible and ask your agent to compare plans and how higher collision or comprehensive premiums change your deductible.
- If you have a low-value car, consider whether or not collision coverage is a good investment.
What if I’ve got an insurance question?
Our Consumer Advocacy program fields hundreds of calls and emails from customers in Washington every day. Contact them here to have your question answered.
