Has your insurance gone up? Starting in June companies have to tell you why

Starting June 1, insurance companies will be required to inform policyholders why their insurance rates have gone up.

This new rule applies to auto and home insurance policies renewed on or after June 1.

“If your insurance company is going to increase your premium, you have a right to know why,” Mike Kreidler, Washington State Insurance Commissioner said. “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. This is pretty basic information that should be available, and now it will be.”

The rule was passed in 2023 to address policyholder complaints about the increasing cost of insurance without knowing the reason behind that change.

The rule will be implemented in two phases:

• Phase 1, starting June 1, 2024, insurance companies have to include a disclaimer on the first page or view of renewal notices or billing statements that lets the policyholder know they can request more details about their premium increase. Companies will have 20 days to respond.
• Phase 2, starting June 1, 2027, companies must automatically provide a clear explanation, including the main factors, at least 20 days before policy renewal if the increase exceeds 10%.

Companies that fail to provide transparency or meet any requirements can face unfair and deceptive practices violating the Washington Administrative Code.

For more information, policyholders can visit the Washington State Office of the Insurance Commissioner website.

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