1. How are auto insurance rates calculated?
2. How can I save money on my car insurance?
3. I was involved in an automobile accident,  What do I do?
4. How long does the company have to respond?
5. What if their insured won't file a claim?
6. Their insured was cited by the police. Why do they have to investigate?
7. I have "full coverage."  Why won't my company pay?
8. Do they owe me a rental car, and for how long?
9. Can I take my car wherever I want to have it fixed?
10. What if the estimates don't match?
11. Can they use non-brand name parts or used parts?
12. I don't want it fixed right now,  Can they pay me the repair amount?
13. They've declared my vehicle a total loss but won't pay me enough to replace it. Is this legal?
14. I've spent a lot of time and phone calls dealing with this. Can I charge them for my time and costs?
15. My automobile policy was canceled because I did not pay my premium on time. Is this legal?
16. Can my insurance company cancel my auto insurance policy if I am found guilty of drunk driving?
17. What should I do if I receive a cancellation or nonrenewal notice from my insurance company?
18. What is a surcharge?
19. What protection do I have against unreasonable surcharges or policy terminations?
20. Can I exclude my spouse or teenager from my insurance policy to lower my premium or avoid being canceled?
21. How much is my insurance company required to pay me if my car is damaged?
22. Is it legal for my insurance company to nonrenew my auto insurance because I have too many claims?
23. I don't understand all the terms in my policy. What should I do?
24. What could cause my premiums to increase?
25. How can I lower my auto insurance premium?
26. What are the risks of changing insurance companies?
27. Why do companies charge different rates for different geographical areas?

1. How are auto insurance rates calculated?
The cost of auto insurance is of great concern to Washington motorists. The rising cost of vehicle repairs and the skyrocketing cost of medical care affect the total cost of auto insurance, pushing premium rates up every year.

State law requires that companies submit request for rate changes to our office along with enough statistical and financial information to justify the rates requested. If our rate analysts are satisfied with the facts provided, the law requires our office to approve the request. If we ignored evidence that a rate was too low, we would be violating the law. The Office of the Insurance Commissioner is obligated to make sure there is enough premium collected to pay possible claims.

The greatest increase in recent years has been in liability coverages. These coverages pay for property damage and bodily injury. The impact of legal costs is a part of the overall expense.

Auto insurance rates are based on a variety of factors. The premium you pay consists of a "base rate" plus or minus amounts reflecting your age, gender, marital status, driving pattern, vehicle type, driving record and claims history. There is a different base rate for each type of car and geographical area. While individual companies may differ in the amounts they assess for each factor, the major rating factors are fairly universal.

• Your age: Statistics show that, as a group, drivers under age 30 have more accidents per mile driven than the general population. Thus, young drivers are charged higher rates, as are families with young drivers in the household.
• Your gender: Young men are involved in more accidents per miles driven than any other population group. The difference is especially pronounced for male drivers under 30. Washington law allows insurance companies to charge on the basis of gender and age where the actual proof of differences in risk exists.
• Your car: As a rule, the more expensive your car, the more you will pay. Because sports cars and high performance cars are involved in proportionately more accidents, cost more to repair and are more likely to be stolen, they cost more to insure.
• Your location: The higher number of accidents in a more heavily populated area raises both liability and collision premiums. The law allows a company to calculate your rate based upon your address, even though you may drive to a more urban or rural area. It is anticipated that most miles driven are within a certain radius of the home address.
• Driving patterns: The more you use your car the higher your rates. A car used to commute 15 or more miles to and from work has an increased risk of being involved in an accident, than one that is driven for pleasure use, not on a daily basis.
• Your driving record and claims history: Most companies apply a surcharge to drivers who have been involved in an accident or convicted of multiple traffic violations. Also, the more claims you have made, the higher your rates are likely to be.

AS A CONSUMER, YOU DO HAVE CHOICES.

2. Here are several ways to save money on car insurance while maintaining safe levels of coverage:

• Choose the right car: Before you buy a car, check with your agent to see how much the rate for the car you have chosen will be, and if the premium and the car payment fit your budget.
• Choose a higher deductible: Your insurance premium can be decreased if you increase your portion of the risk. Raising your collision and comprehensive deductibles from $250 to $500 or higher can save you nearly half the cost. You do need to be aware that you will have to pay the higher deductible any time you use these coverages.
• Eliminate duplicate coverages: You may have an overlap in coverage, such as medical coverage and health care, or collision and uninsured motorist property damage Ask your agent to explain what each coverage offers.
• Shop around: Because each company's rates are based on its own loss experience, the premium charged by different companies can be different for the same driver. However, the cheapest insurance isn't necessarily the best. Make sure you tell the agent if you have any special equipment or additional drivers.
• Companies differ in the skill, care and speed with which they settle customers' claims. Our office can not recommend one company or policy over another.

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Last modified on Sept 28, 2003||Partners||As we partner with additional resources, this site will continue to progress