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Washington Adopted a Rule Requiring Insurers to Inform Policyholder Regarding Premium Increases

On June 22, 2023, Washington Insurance Commissioner Mike Kreidler adopted a rule requiring insurers to explain premium increases to their policyholders, using basic language that a policyholder can understand.

The adopted rule is designed to create more transparency for consumers regarding premium increases. The rule applies to all property and casualty insurers in Washington that sell private passenger auto and homeowner coverage, including coverage for manufactured homes, condominiums, and renters.

Beginning June 1, 2024, Insurance companies must provide a written notice upon renewal to policyholders who received a premium increase of 10% or more explaining the primary factors behind the increase, or to any policyholder who requests an explanation of a premium increase. Primary factors include the vehicle’s location, driving record, miles driven, number of drivers, claims history, discounts, fees, surcharges, driver’s age, credit history, education, gender, marital status, occupation, property age, and value. Additionally, insurance companies are required to provide the same notice to any policyholder who asks.

Beginning June 1, 2027, all premium increase notifications must be filed with the Commissioner for approval.

Attached is a link referencing the adopted rule and the statutory changes that come along with the new rule (

For more information on Washington’s adoption of this new rule or any other questions, please contact Westmont Associates, Inc.




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