Washington will require insurers to reveal reasons for rate hikes

[Yo_Mama_Been_Loggin]

Insurers will soon have to provide customers a clear explanation for increases in their auto and home insurance premiums at the time of renewal.

Beginning Saturday, companies must do so in writing if a policyholder requests it. In 2027, that information must be provided automatically and in easy-to-understand language on policy renewal notices.

“If your insurance company is going to increase your premium, you have a right to know why,” Insurance Commissioner Mike Kreidler said in a statement. “Hundreds of consumers, every year, have told us they are unable to get a clear answer from their insurance company about why they’re being charged more..”

Kreidler cited the volume of consumer complaints when he began this effort in February 2022. The lack of clarity can impede policyholders’ ability to decide on whether to renew or change insurers. Disclosing reasons for an increase will promote honesty and fairness in transactions, he has said.

https://washingtonstatestandard.com/2024/05/29/washington-will-require-insurers-to-reveal-reasons-for-rate-hikes/

[fierywoman]

1. Thank you for this! I'd wondered why my car insurence increased 20% --

and I'm in Redmond.

[AnnaLee]

2. What if they sent the bill last week

Auto with a huge increase from AllState. Does the law cover billing date or payment due date? My umbrella also had a huge increase in February. Maybe they raced with greater increases than planned before the law passed????

[LPBBEAR]

3. About time...

some oversight was forced upon these companies. I drive probably less than 1500 miles a year. My insurance almost doubled this last time. No logical reason for it. I called my agent and he immediately dropped it about $60 and then later out of no where I got a refund check for another $45. Obviously someone is screwing up.
I live in Washington state. Hopefully this will have a positive impact for consumers.