Why is car insurance so expensive in WA? Price tied to factors such as theft, inflation
Did your auto insurance rate go up recently? You’re not alone, as car insurance rates rose by more than 10-15% across Washington state during 2023, according to personal finance website Value Penguin.
Car insurance rates in Washington are expected to see a 20-25% rate change in 2024. Auto insurance rates are expected to increase by 12.6% across the U.S. during 2024., according to Value Penguin.
So, why are the rates going up so much? Here’s what we know.
How auto insurance rates are set
According to the Washington state Office of the Insurance Commissioner, companies can look at these factors to determine rates:
Age
Gender
Marital status
Vehicle
Location
How much you drive
Credit score, credit history
Driving record, claims history
Insurance companies are required by to send their rate requests to the Commissioner’s office when they want to change their rates. Before approving or disapproving a company’s request, the Commissioner’s office looks to see that the company’s financial and statistical data are accurate and sufficient to justify the rate change.
Why WA insurance rates are going up
The website for the Commissioner’s office states the increases seen in 2023 were caused by a multitude of factors, including inflation, cost of labor and auto parts, and an uptick of traffic deaths and accidents.
Inflation
Inflation rates were unprecedented in recent years, rising 6% between February 2022 and 2023, according to the Bureau of Labor Statistics. While consumer prices are reportedly dropping, the cost of operation everywhere is still coping.
Cost of auto parts and labor
Across the country, the cost of vehicle maintenance and repairs rose an approximate 7% from 2022 to 2023, according to the Consumer Price Index.
Increase in traffic deaths and accident rates
There were 750 traffic deaths in Washington in 2022, the deadliest year on the state’s roads since 1990, according to the Washington Traffic Safety Commission.
Governor Jay Inslee stated in a media briefing Jan. 18 that 800 people died on Washington’s roads in 2023, continuing a multi-year increase.
According to Value Penguin, your insurance rate will increase by 52% after a traffic violation or accident.
How can I reduce my auto insurance premium?
If your car insurance rate increased this year, there are a few things that you can do to find the best rate that works for you.
▪ Find discounts
According to the Washington state’s Insurance Commissioner, it’s best to call your insurance company to see if they offer any discounts and to talk about how much coverage you need in order to lower your insurance rate before shopping around for lower rates with other auto insurance companies.
These are common auto insurance discounts that you can ask your insurance company about:
Auto discounts
- Airbag and automatic seat belts
- Anti-lock brakes and anti-theft devices
- Two or more vehicles on a policy
- Insure your home with the same company
Driver discounts
- Senior safe-driver discount, especially if you take a safe driving for seniors course
- Mileage driven
- Good driving records
- Good-student discount for young drivers
- Young driver away at college without a car
▪ Shop around
If your current auto insurance company can’t give you a rate that works for you, shop around and get quotes from several companies. Once you’ve shopped around, compare the quotes to see which one works best for you.
▪ Adjust your coverage
Switching from full coverage to minimal coverage can save you a lot of money, and it’s something to consider if you don’t have a new and more expensive car. Removing optional coverage such as roadside assistance can also lower your insurance rate, according to Value Penguin.
The Washington state Office of the Insurance Commissioner website states that the amount of the deductible that you pay affects your auto premium, so raising your collision and comprehensive deductibles can actually save you money.
What are the cheapest car insurance companies in WA?
According to Value Penguin, these are the cheapest full coverage insurance companies and their monthly rates.
State Farm - $87
Geico - $101
Pemco - $124
Allstate - $142
American Family - $148
McClatchy contacted the Washington State Office of the Commissioner as well as several local insurance companies for comment, but did not receive an immediate response.
McClatchy’s Northwest Service Team wants to know: Has your auto insurance gone up in the last year? We want to hear about your experiences with rising car insurance rates. Your response may be used in a future story. Tell us about it here:
This story was originally published January 22, 2024 at 12:08 PM with the headline "Why is car insurance so expensive in WA? Price tied to factors such as theft, inflation."
