On March 22, 2021 Washington State Insurance Commissioner Mike Kreidler issued an emergency rule banning credit scoring for personal insurance for three years.
The emergency rule applies to personal auto, homeowners and renters coverage. Personal auto includes personal coverage for motorcycles, collector vehicles, antique autos, and RVs.
Currently, insurance companies use credit scores, along with other factors including where you live, your claims history, driving record and age, are used by insurers in a formula to create an “insurance score” they say predicts the likelihood you will file a claim. This score is then used to determine how much a person will pay for their personal insurance policies.
Commissioner Kreidler believes credit scoring is unfair.
To learn more, visit: https://www.insurance.wa.gov/credit-scoring-ban
The prohibition on the use of credit history applies to:
This ban will apply to ALL admitted insurance carriers writing personal insurance policies in Washington state who currently use credit for rating or underwriting purposes.
How does this affect you?
How can Brown & Brown Insurance help?
Brown & Brown Insurance has been working hard to minimize the impact to our clients.