Groceries, gas, housing, and now car insurance. Rates in Washington, and around the country, have been climbing.
OLYMPIA, Wash. — If you own a car, you’ve likely noticed the increase. Insurance rates have been climbing in recent months.
So, what’s driving prices up? And, when will things level off?
The Washington state Office of the Insurance Commissioner tells our Verify team there are two key reasons that insurance rates are on the rise.
THE QUESTION
A viewer reached out to our Verify team to ask about higher car insurance rates, writing:
“My auto insurance jumped $62 in one month. We received our auto-renewal, and our auto insurance went up from $187 to $249 in one month. Our driving records are clean.”
THE SOURCES
Washington state Office of the Insurance Commissioner
Washington State Department of Transportation
THE ANSWER
Yes, car insurance rates are rising in Washington state. Aaron VanTuyl, the communications manager with the Office of the Insurance Commissioner said two main factors are driving up insurance rates.
First is an increase in the severity of car accidents in Washington starting in 2020.
“Over that three-year stretch auto accidents that were occurring just got to be more severe, higher damage to the cars, more people injured and of course that impacted the cost of claims that insurance companies had to pay out,” VanTuyl said.
Data from the Washington State Department of Transportation shows the number of serious injury crashes climbed from 1,936 in 2019 to 2,875 in 2023 – a 48% increase.
The second factor driving up rates is the cost of cars.
According to Kelly Blue Book, the average price for a used car climbed, on average, $9,136 from 2019 to 2023; an increase of 43%. During that same time, the average price for new cars increased by $10,773, or 28%.
So, we can verify that yes, auto insurance rates have increased in the state of Washington based on factors like the soaring cost of cars and a marked increase in serious crashes.
WHAT WE FOUND
Before insurers can raise their rates, they are required to show the state justification for doing so.
“In order for a company to request a change and get that change approved by our office, they have to provide financial statements… that show how it’s justified and how it’s in accordance with the law and things like that,” VanTuyl explained.
Next month, a new law called the premium change transparency rule is set to take effect. It means that if you ask your insurer why your rates have increased, they’ll be required to tell you why.
Starting in June 2027, anytime your rate goes up 10% your insurance company will have to notify you in writing to explain why that’s happening.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.