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 went 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.

Update – August 2022

A judge ruled on July 29, 2022 that the stay on the Office of the Insurance Commissioner rule on banning credit scoring for setting rates will remain. This means insurers may use credit scoring as part of their system for determining rates for auto, home, and renters insurance policies. The decision to use credit scoring is up to each of the insurance carriers. We are continuing to watch this space intently and will keep our customers up-to-date if any changes will affect their policies and will contact them directly.

Update – December 2021

Following the emergency rule banning credit scoring for insurance rates, on October 8, 2021, a superior court ruling overturned the credit scoring ban. Although the rule was overturned, the Office of the Insurance Commissioner continues to pursue its options. This has been a back-and-forth issue and has led to continued uncertainty. We anticipate more changes in the coming months, and for now, it appears many insurance companies are in a holding pattern.

Key information

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 does credit scoring affect the cost of my insurance?

Insurance rates are primarily 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 evaluate risk differently, which could significantly change your rate. It will not be the same for everyone, with most people experiencing little to no change.

You may see a price change for your insurance policy, either positive or negative, depending on how rate structures are changed in response to any changes to the scoring rules.

What happens next?

We are closely watching and prepared for any changes. 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.

Our recommendations

  • 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 an excellent 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. In exchange for lower protection, saving money on your monthly payments will leave you vulnerable when you need it the most. Carefully consider any new policy and how it will protect you.

More information

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.