What’s Going On? Wa Insurance Rates Through The Roof

Notice your insurance rates on the rise like gas prices? According to ValuePenguin, a Lending Tree firm that researches auto insurance last year saw an average 24.7% increase in insurance rates for vehicles in Washington State.

THE INCREASES ARE COSTING RESIDENTS MORE THAN JUST LAST YEAR

Using Seattle as an example officials say the average cost for car insurance in Seattle is now $901 a year or $75 a month. That's for a basic policy. You want full coverage? That will cost you $2,086 per year or $174 per month.
Insurance rates have been on the rise since 2017 when the state saw a 7.1% increase. But rates shot up 6.5% in 2022 and in 2023 rates rose 12%.

RATES OF INCREASE ARE LINKED TO THE RATE OF INFLATION

Officials in the Washington Insurance Commissioner's Office have linked the rate increase to inflation. Critics say that's wrong and irresponsible. But insurance companies say they simply want to make a profit and say it's not easy in this economy.

BUT WHAT'S DRIVING COSTS UP?

Industry officials say several factors are driving costs including the cost of labor, the rising cost of auto parts and traffic crashes.

WHAT HAPPENS WHEN DRIVERS CAN'T AFFORD INSURANCE?

High insurance rates only mean one thing. Fewer drivers will be buying insurance. Many drivers in the state say they can't afford insurance now and are very concerned about increases in the future. Some drivers say they drive without insurance hoping to avoid any problems or accidents. Officials at ValuePenguin at https://www.valuepenguin.com/ say 8.5% of Washington drivers are uninsured. But some critics say we could see that number climb to 40% uninsured if rate continue increasing in Washington State.