On March 23, 2021, the Washington State Insurance Commissioner issued an emergency rule banning the use of credit scoring as part of any rates set for personal property insurance. This rule is set to go into effect on June 20, 2021, and last for three years. Due to this new rule, a select group of consumers will notice a change to their auto insurance rates at their time of renewal on or after June 20, 2021.
As a customer of Cross Insurance Agency, we want our customers to know:
- We are monitoring this closely and are in constant communication with our insurance partners.
- This rule will not affect your current active policy. Any changes to your rate will only be known at your renewal period.
- As your professional insurance advisors, we are monitoring all our customer accounts and will be proactively contacting anyone who will see their rates impacted due to the emergency credit rule.
How will removing credit scoring effect the cost of my insurance?
This new change will undoubtedly impact the amount some consumers pay for auto insurance. You may see a price change for your insurance policy, either positive or negative, depending on how rate structures are changed in response.
Insurance rates are primarily set based on risk, with credit scoring used as part of the risk evaluation. Credit scoring has been used for rate setting insurance for many years in Washington State. By removing it from their formula, many insurance carriers will be evaluating risk differently, which could have a significant change on your rate. It will not be the same for everyone, with most people experiencing very little to no change.
What happens next?
As mentioned above, we are closely watching and prepared for the any changes coming on June 20. Our professional, and fully licensed agents are here to make sure your insurance is easy to understand, while being helpful, informative, and friendly.
It is more than just a tagline; we aim to take the surprise out of insurance.
- Be patient and wait for your renewal. Since the changes do not affect your current policy, we recommend you wait as the disruption in the market settles. As a customer of Cross Insurance Agency, you already receive an annual review. We will contact you approximately 45 days prior to your renewal and advise you on any changes you may want to consider.
- Take advantage of discounts. Many insurance carriers offer a wide range of discounts, especially when bundling your policies. Before evaluating any changes to your policy, be sure to consider the discounts available. This is a great opportunity to contact us to review your other insurance policies you may have other places to uncover potential savings prior to your renewal.
- Don’t exchange a cheaper rate for less coverage. Insurance is there to protect what is most valuable to you. Whether that is your home, car, boat, or cost of potential legal action. Saving money on your monthly payments in exchange for lower protection will leave you vulnerable when you need it the most. Carefully consider any new policy and how it will protect you.
We are here for you! We will be in communication with you as your renewal approaches. If you would like to also receive email updates for any additional rule changes, please enter your email address below to have this page sent to you, along with any future updates.
If you would like even more information on this subject, you can visit this website to live chat, call, or email with a representative at the Office of the Insurance Commissioner.