What is it?
On March 23rd, our WA Insurance Commissioner has temporarily (120-days) banned insurers’ use of credit scores when determining how much you pay for auto, homeowners, or renters insurance. It was done through an emergency order and did not allow insurance carriers time to adjust how they rate, which may cause significant rate changes.
How will it impact you?
If you have good credit, the discounts associated will be removed, causing your price for insurance to increase this policy term.
If you have average credit, you may not see rate changes.
If you have below average credit, the additional charges will be removed, causing your price for insurance to decrease this policy term.
You will begin to see the new rates for renewals on/after July 20th for auto and August 5th for home/renters.
What can YOU do?
Give us a call with any questions – we work for you! This emergency order is temporary (120 days), and our advice is to remain with your current insurance carrier until a longer-term decision is reached. The largest reason to stay is that changing insurance carriers will negatively impact any savings earned from insurance history and needs to be preserved as much as possible. Additionally, switching carriers may require a new home inspection, updates, current jewelry appraisals, adjustments to your escrow account etc.
What we are doing for you!
We are your advocate and have lots of options should you not be happy with the new rate. We’ve hired additional staff and are working to communicate everything we know with you and should you have any questions, give us a call and we will be glad to help! We anticipate insurance carriers will have the pricing back to normal in 2022 when they’ve had adequate time to re-calculate their rating factors without the use of credit scoring.
Your Voice Matters!
Make your voice heard! Share your story with elected representatives and senators about how this emergency credit ban impacts you!
- Find Your State Representatives or Senators: https://app.leg.wa.gov/districtfinder/
