Please read this IMPORTANT notice.
On March 23, 2021, Washington State Insurance Commissioner, Mike Kreidler, issued an emergency order temporarily prohibiting insurers from using credit-based insurance scoring to help determine premiums and eligibility for coverage in private automobile, homeowners, and renter’s insurance products. This order is in effect for ALL insurance carriers and policyholders in WA state.
A credit-based insurance score is a model used by insurance companies to assess a potential insured consumer’s risk level. Various studies have found a strong relationship between credit-based insurance scores and the potential of loss. Generally, the better your credit, the lower your premium will be.
What this means to you is due to Commissioner Kreidler’s order, your credit-based insurance score was NOT contemplated in this renewal. Without the ability to utilize your score, you are no longer eligible for a reduced pricing tier; therefore, you may notice an increase in your policy premium.
It’s been asked if the insurance companies can do anything to mitigate potential price increases related to eliminating the use of credit history? The answer from the Office of the Insurance Commissioner is “NO.” This is mandated to be a standalone change with no other changes allowed.
Again, this order is in effect for ALL insurance carriers and policyholders in WA state.
Please contact us if you or anyone you know have any questions about this order or any other general insurance inquiries.