Auto Insurance Rates

The cost of auto insurance is of great concern to Washington motorists. The rising cost of vehicle repairs and the skyrocketing cost of medical care affect the total cost of auto insurance, pushing premium rates up every year.

State law requires that companies submit request for rate changes to our office along with enough statistical and financial information to justify the rates requested. If our rate analysts are satisfied with the facts provided, the law requires our office to approve the request. If we ignored evidence that a rate was too low, we would be violating the law. The Office of the Insurance Commissioner is obligated to make sure there is enough premium collected to pay possible claims.

The greatest increase in recent years has been in liability coverages. These coverages pay for property damage and bodily injury. The impact of legal costs is a part of the overall expense.

Auto insurance rates are based on a variety of factors. The premium you pay consists of a "base rate" plus or minus amounts reflecting your age, gender, marital status, driving pattern, vehicle type, driving record and claims history. There is a different base rate for each type of car and geographical area. While individual companies may differ in the amounts they assess for each factor, the major rating factors are fairly universal.

* Your age: Statistics show that, as a group, drivers under age 30 have more accidents per mile driven than the general population. Thus, young drivers are charged higher rates, as are families with young drivers in the household.

* Your gender: Young men are involved in more accidents per miles driven than any other population group. The difference is especially pronounced for male drivers under 30. Washington law allows insurance companies to charge on the basis of gender and age where the actual proof of differences in risk exists.

* Your car: As a rule, the more expensive your car, the more you will pay. Because sports cars and high performance cars are involved in proportionately more accidents, cost more to repair and are more likely to be stolen, they cost more to insure.

* Your location: The higher number of accidents in a more heavily populated area raises both liability and collision premiums. The law allows a company to calculate your rate based upon your address, even though you may drive to a more urban or rural area. It is anticipated that most miles driven are within a certain radius of the home address.

* Driving patterns: The more you use your car the higher your rates. A car used to commute 15 or more miles to and from work has an increased risk of being involved in an accident, than one that is driven for pleasure use, not on a daily basis.

* Your driving record and claims history: Most companies apply a surcharge to drivers who have been involved in an accident or convicted of multiple traffic violations. Also, the more claims you have made, the higher your rates are likely to be.

Various factors can change the cost of your auto premium such as: adding or increasing coverages, adding another vehicle to the policy, replacing an older vehicle with a newer one, adding a new driver, changing the usage of the vehicle (driving to work, using for business purposes), increasing the number of miles per year and moving to another area. In addition, your company may have been granted a rate increase since your renewal. Direct questions on increases to your agent or company.