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HomeHome InsuranceWashington Premium Change Transparency Rule Kicks in June 1

Washington Premium Change Transparency Rule Kicks in June 1


Insurance will be required tell policyholders why their premiums have gone up staring June 1.

A new rule by Washington state Insurance Commissioner Mike Kreidler first requires insurers to provide an answer on why premiums have gone up, and in 2027, carriers will be required to provide that information automatically when a policy renews.

The new premium change transparency rule covers auto and homeowner insurance policies. The Office of the Insurance Commissioner held five public meetings to gather input from consumers and the insurance industry prior to finalizing the rule.

The rule goes into effect in two phases.

Phase 1 starts June 1, requiring insurers to include a disclaimer on the first page or view of renewal notices or billing statements that lets policyholders know they can request more details about their premium increase.

These notices must be in 12-point bold font and must include contact information. The insurer has 20 days from receiving a written request to provide an explanation for the premium increase.

Phase 2 starts June 1, 2027, when insurers must begin sending a notice at least 20 days before renewing a policy with a 10% or more increase.

The requirements for explanations get more specific in the second phase. Insurers must provide a clear explanation and include the primary factors that caused the increase.

Those factors can include claims history, discounts, fees and surcharges, premium capping, base rate changes, and demographic factors. For auto insurance, factors can also include a vehicle’s garaging location, driving record, miles driven, the number of drivers and the number of vehicles on the policy. For homeowner insurance, factors can also include the property’s age, location and value.

“If your insurance company is going to increase your premium, you have a right to know why,” Kreidler said in a statement. “Hundreds of consumers, every year, have told us they are unable to get a clear answer from their insurance company about why they’re being charged more. This is pretty basic information that should be available, and now it will be.”

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