Ban on Credit in Washington State

What Happened

What Happened

On April 20th, 2021 the Washington State Insurance Commissioner put in place an emergency rule banning the use of credit in determining insurance costs to be effective June 20, 2021.  This action affects 99% of the insurance companies and personal insurance buyers in the state.

The Commissioner’s action will affect the costs of Auto, Motorcycle, RV, Home, Condo and Renter’s insurance. Insurance costs will change for most people.

To learn more go to the Commissioner's website

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Will my insurance costs increase or decrease?

No one knows.


Neither the Insurance Commissioner, the Insurance Company, or ourselves know what your future insurance costs will be. This change will make prices unpredictable because how insurance companies make prices today will not be the same as how they will make prices after the 20th of July.


Why was credit used in setting the price for insurance in the first place?

Insurers have proven that people with better credit had fewer claims in the future and people with worse credit have more claims in the future. This information allowed rating to be more accurate per the individual, enabling companies to reward policy holders with better prices sooner. Because of this strong correlation, insurance providers have been legally doing this for years in most states.

Can I make this change benefit me?

Because no one completely knows what will happen, it's almost impossible to know how to best move forward.


However, if your auto insurance is only a 6 month policy and it renews between now and June 20th you can request your provider to change it to an annual policy. This will protect you from this issue for a year, which we are hoping by this time next year insurance companies will have a better handle on pricing.

Do you have a more specific question? We can help.

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