Washington Insurance Credit Score Ban Information

We have frequently asked questions and resources.

Credit scoring can no longer determine insurance rates, premiums & eligibility in Washington.

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Earlier this year WA Insurance Commissioner (OIC), Mike Kreidler, issued a 120-day, temporary emergency order, prohibiting all insurance companies from using credit scoring as a rating factor for insurance premiums. Mosaic Insurance has been diligent with staying informed about Washington State’s credit score ban, so that we can guide and help our clients and community. While the order is temporary, it may stay in effect for 3 years or more. This emergency order will apply to all insurance companies writing policies in Washington, and will be put into effect on June 20.

How Can This Credit Ban Affect You?

If you have a personal insurance policy in Washington, you may see an increase or decrease in premium when you go to renew after June 20, 2021.

What If You Do Not Like Your New Premium?

Premiums can vary carrier to carrier, and Mosaic Insurance Alliance is an insurance broker. That means, if you want to shop around and get a different insurance carrier, we have numerous companies that you can choose from. We do business with top insurance companies, including but not limited to PEMCO, Travelers, Safeco, Allstate, Nationwide, Progressive, Encompass, and Foremost/MetLife. It is important to know that this order is temporary, so Mosaic recommends that you remain with your current insurance carrier until a more long-term decision is set by the state. You will not want to lose your longevity or claims-free discounts from your current provider.

What is Mosaic Doing to Help You?

Mosaic is dedicated to making sure to provide our clients with as smooth of a transition as possible.

  • If you have questions, we can help you find the answers! Check out our collection of Frequently asked questions (FAQs) at the bottom of this page.
  • We do not set rates since we are an insurance broker, but we are on your side. We will do whatever we can to help you with this transition. Don’t hesitate to reach out to us by phone or email.
  • Please keep in mind that insurance carriers are working on meeting the needs of the credit ban. Since the ban was put into effect immediately, some services might not be available from certain carriers when you reach out. This inconvenience is state-wide, and Mosaic is making sure to stay in the loop so that we can provide you with services immediately when they become available.
The OIC Has More Information for You

The Washington State Office of the Insurance Commissioner (OIC) has more information on the Washington insurance credit ban. You can call them directly at 800-562-6900 or reach out to their question forum here.

Washington Credit Ban Frequently Asked Questions (FAQs):

Q: What does the Washington state insurance credit score ban mean?

A: Effective June 20, 2021, it is prohibited for any insurance company doing business in Washington state to factor in an individuals’ credit score and history to determine insurance items like rates, premiums, and eligibility.

Many insurers all over the United States have used credit history as a factor in the insurance scoring process for 20+ years. However, other states have banned credit as a rating factor—Washington will now be the 4th state to remove it.

Q: Is the credit ban in Washington only for certain insurance types?

A: Auto, renters, condo, home, dwelling, fire, and/or landlord insurance are the Washington coverages that cannot have credit scoring as a factor when determining rates, premiums, and coverage eligibility as of June 20, 2021.

Q: Will the insurance credit score ban in Washington increase your insurance bill?

A: When it comes time to renew policies, Washingtonians will likely see an increase or decrease in their insurance rates. For example, if an insured has credit that their insurance company deems as good credit, they will most likely see an increase in premium because their “good credit discount” will no longer be applied. The same goes for a opposite situation—if an insured has poor credit according to their carrier’s standards, they are likely to see a decrease in premium because their credit is no longer working against them.

Q: What if your insurance premium change is not satisfactory?

A: As always, Mosaic is here to help you with any concerns that you have. We are ready to look into other insurance saving options for you. If your current carrier is not meeting your needs, we can help you get coverage through another insurance carrier. We love being an independent insurance agency because we can do free quotes with numerous carriers for you and get access to competitive prices and discounts. However, do not be surprised if your dedicated account manager encourages you to stay with your carrier. We will first make sure you have all the discounts you are eligible for, make sure all policies are bundled with one carrier to maximize discounts, and then we will shop our other carriers if needed. Some carriers surcharge for clients who move carriers on a continual basis. Not to mention, you don’t want to lose your longevity discounts or claims-free discounts with a carrier.

In addition to knowing that Mosaic can quote you with different carriers to help you get the right coverage at competitive rates, is important to know that your premium raise/decrease when you go to renew might not be due to the new rule entirely (or at all). You might have other factors that are changing your rates. A Mosaic independent insurance agent can help you determine what factors are impacting your insurance rates, and help you get coverage from a carrier that fits your financial and coverage needs.

Q: What factors are considered for insurance rates?

A: There are various other factors that insurance companies will keep using to determine how much you pay for insurance. Some common factors for car insurance cost include driving record (past claims and tickets), annual mileage, and the type of vehicle you drive. Also, popular factors for home insurance prices are past claims, safety ratings of items on the property, cost of replacing possessions if a claim were to happen, and home type/construction. Numerous insurance companies are also looking into other pricing factors that they can implement instead of credit.

Q: How can I lower my insurance rate?

A: Mosaic Insurance has access to MANY insurance carriers who offer premium discounts. Common discounts include bundling home and auto, being a loyal customer, being a good student, scoring well with a driver tracker, and having low mileage.

Q: What insurance companies are affected by the new Washington insurance credit ban?

A: All insurance companies that do business in Washington. The headquarters of a company does not dictate if they do or do not need to follow the Washington credit ban law. If a company sells insurance in Washington state, it will need to follow the credit score ban when doing business for Washington policies.

Q: I have some more questions about credit scoring…

A: The Insurance Information Institute might have what you are looking for. As always, if there is anything that we can help you with, give us a shoutout and we will see what we can do. We are in this together!

Q: Have another question we might be able to help you with?

A: Here at Mosaic, we LOVE questions! Give us a call, or email us with your question(s), and we will do our best to help give you an answer or point you in the right direction.

Washington Insurance Credit Score Ban Information - Businessman Writing Up A Insurance Quote On Paper On His Desk