If you live in Washington, you live in a state that looks out for those seeking all types of insurance. Stringent laws under the Washington Insurance Fair Conduct Act regulate what type of information insurance companies can use in determining rates and approving claims. This is one reason residents of the Evergreen State tend to have lower insurance costs than most other states.
Factors Affecting Washington Insurance Rates
There are a number of factors that go into calculating your Washington insurance rates for auto and home insurance. Some of them you can't really control, like your age or your gender. Others, like your driving record or the security devices you have in your home, you can control. Knowing how your rates are calculated can help you save money.
For auto insurance, a few of these factors include:
- Age and gender. Statistically, drivers under the age of 25 are involved in more accidents than older, more experienced drivers. As a result, if you are under 25 or have a driver on your policy who is, you will probably pay more for your insurance. Statistics also show that men are generally involved in more accidents and are considered worse drivers than women (despite what numerous jokes might lead you to believe) and will also pay higher rates.
- Make/model of car. More expensive vehicles are more to insure, as their repair costs are generally higher. The same goes for sports cars, which are involved in more accidents and ticketed more frequently than sedans or other types of cars.
- Address. Residents of an area that is high in crime, particularly auto theft or other types of property crime, will pay more for certain types of insurance, particularly comprehensive coverage, which covers theft and vandalism.
- Driving record. A few tickets and an accident or two on your record, even if it's just a fender bender, will greatly influence your Washington insurance rates. In some cases, insurance companies won't accept those who have too many blemishes on their record.
There are a number of factors influencing your home insurance rates, including:
- Location of your home. Location of your home can have a big impact on rates. Factors such as geography (if you live in a flood plain or are prone to hurricane activity) as well as crime rate can raise your rates. Fortunately, Washington isn't prone to hurricanes, tornados, or many other natural disasters.
- Materials. Homes made of wood or other material that is more likely to burn than stone or brick, for example, will have higher rates. Sturdier structures can also better withstand wind damage and earthquakes, so rates will be lower.
- Claims filed. If you have filed claims in the past, your rates are more likely to be higher as you are now put in a higher risk category.
Insurance Fair Conduct Act–What It Means To You
Washington insurance rates and practices are unique due to the Insurance Fair Conduct Act, which protects consumers in a number of ways. Those who feel they have not been treated fairly by insurance companies, whether their claim was denied for a specific reason or not handled in a reasonable amount of time, consumers can sue their insurance companies, who are then held accountable. Not only that, Washington laws are strict when it comes to using your credit score to determine rates, and companies must inform people if they deny them coverage or give them a higher rate due to credit scores.
Saving Money on Washington Insurance Rates
One thing you can do to save money is shop around and compare rates from different companies. This can be time consuming if you don't use a site like LocalInsurance.com. This comprehensive site provides information regarding Washington insurance rates and regulations, and then provides you with multiple quotes from local companies.
