If your premiums went up, your insurance company has to tell you why

If your insurance bill has gone up, your insurance company has to tell you why.

As of June 1, 2024, your insurance company will have to let you know why your premiums have gone up.

Washington state Insurance Commissioner Mike Kreidler’s new rule requires your insurer to provide an answer if you ask why your premiums have gone up — and in 2027, they’ll have to provide that information automatically when your policy renews.

‎OIC Answers on Insurance: OIC Answers: What's a transparency rule? on Apple Podcasts

The new premium change transparency rule covers auto and homeowner insurance policies for people in Washington. The rule goes into effect in two phases.

Phase 1

Starting June 1, 2024, insurance companies have to include a disclaimer on the first page or view of your renewal notice or billing statements that lets you know you can request more details about their premium increase.

These notices must be in 12-point bold font and must include contact information.

The insurance company then has 20 days from receiving a written request (through the mail or email) to deliver a clear, concise statement, in writing, providing a reasonable explanation for the premium increase.

Phase 2

Starting June 1, 2027, insurance companies must send you a notice at least 20 days before renewing a policy with a 10% (or more) increase.

The requirements for explanations get more specific in Phase 2: Insurance companies have to provide a clear explanation and include the primary factors that caused the increase.

Those factors can include your claims history, discounts, fees and surcharges, premium capping, base rate changes, and demographic factors — like your age, credit history, education, gender, marital status, and occupation.

For auto insurance, factors can also include your car’s garaging location, driving record, miles driven, the number of drivers, and the number of vehicles on the policy.

For homeowner insurance, factors can also include the property’s age, location, and value.

If you have additional questions, think your insurance company isn’t meeting these standards, or want to file an insurance-related complaint, contact the OIC.