COVID-19’s Impact on Insurance Rates
The Washington State Insurance Commissioner passed a law that will go into effect on June 20, 2021 prohibiting insurance carriers from using credit as a factor in their rating structure. This new law may negatively impact rates of clients that have a good credit standing which currently results in lower insurance rates.
- Moratoriums on New Business: Many carriers have already announced they will stop binding new policies on or before June 20, while they file new rates with the Office of the Insurance Commissioner and wait for those rates to be approved by the OIC.
- Renewal Rates: If you have good credit expect to see your premium increase on your renewals that are effective after June 20, 2021. Our office has already had some significant increases come through on policies renewing after June 20. This impacts rates for all lines of business (auto, home, boat, cycle etc.)
- Contact your Agent before June. While there is no way for an agent to know what the rates will look like on policies effective post 6/20/21 there may be options for lower premiums now and those polices can be issued before the 6/20/21 deadline. Contact your agent now and discuss the possibility of switching to a new carrier with an effective date prior to June 20. This will buy you some time (12 months) before you are impacted by the new rate structure at your renewal in June of 2022.
Questions? .If you have questions or would like me to look at possible options from the nearly 20 carriers that we represent at Guide, please call and your account manager is happy to assist you
- Written by: Casey Shipley