🔄 Washington's Credit Score Rollercoaster
Washington State has been the epicenter of the national debate on credit-based insurance scoring. In 2021, Commissioner Mike Kreidler banned credit scores for insurance rating. In 2022, courts overturned the ban. In 2025, Senate Bill 5589 mandates a comprehensive study on credit scoring's disparate impacts. This regulatory whiplash has created market instability and rate volatility.
Washington Auto Insurance: Quick Facts (2025)
| Category | Details |
|---|---|
| Minimum Liability | 25/50/10 |
| PIP Coverage | $10,000 (opt-out requires written waiver) |
| Average Full Coverage | $2,175/year ($181/month) |
| Average Minimum Only | $864/year ($72/month) |
| National Rank | 27th Most Expensive |
| Fault System | At-Fault (Tort) |
| Credit Scoring | ✅ Currently Allowed (under study) |
| Uninsured Driver Rate | ~15% |
The Credit Score Saga: A Timeline
Commissioner Kreidler bans credit scoring
Insurance Commissioner Mike Kreidler issues emergency rule banning credit-based insurance scores, arguing they discriminate against low-income and minority groups.
Courts overturn the ban
Washington courts rule the commissioner exceeded his authority. Credit scoring is reinstated, leaving insurers scrambling to re-file rates.
SB 5589 mandates comprehensive study
Legislature passes bill requiring study of credit scoring's disparate impacts. Results could lead to new legislation restricting or banning credit factors.
⚠️ What This Means For You
The regulatory uncertainty has made Washington rates more volatile than usual. If you have good credit, lock in rates now—future legislation could eliminate credit-based discounts. If you have poor credit, watch for potential relief in 2026-2027 if the study leads to new restrictions.
🚗 The Kia/Hyundai Theft Epidemic
Seattle-Tacoma: Ground Zero for Kia/Hyundai Thefts
A viral TikTok "challenge" exposed a security flaw in 2011-2022 Kia and Hyundai vehicles, making them trivially easy to steal. Seattle and Tacoma have been hit especially hard, with comprehensive claims skyrocketing. If you own an affected vehicle, expect higher comprehensive premiums.
Affected Vehicles (No Immobilizer)
- • Kia: 2011-2021 models without push-button start
- • Hyundai: 2015-2021 models without push-button start
- • Fix: Free software update from dealers (reduces theft risk)
- • Insurance: Some carriers won't insure unpatched vehicles
Seattle vs. Eastern Washington: The Divide
| City | Avg Full Coverage | vs. State Avg | Key Factor |
|---|---|---|---|
| Tacoma | $2,716/year | +25% | Theft hotspot |
| Seattle | $2,581/year | +19% | Density, theft |
| Bellevue | $2,200/year | +1% | Suburban rates |
| Vancouver | $2,000/year | -8% | Portland suburb |
| Spokane | $1,449/year | -33% | Eastern WA rates |
The east-west divide is dramatic: Spokane drivers pay 44% less than Tacoma drivers.
Washington's PIP "Opt-Out" System
📋 Washington Requires PIP Offer (But You Can Decline)
Washington requires insurers to offer Personal Injury Protection (PIP) to all drivers, with a minimum of $10,000. Unlike states where PIP is optional, Washington uses an "opt-out" system—you must sign a written waiver to reject it.
This results in high PIP penetration rates, ensuring most Washington drivers have medical coverage regardless of fault. It also contributes to higher average premiums compared to pure tort states.
Washington's Largest Auto Insurers (2025)
| Rank | Company | Market Share | Notes |
|---|---|---|---|
| 1 | State Farm | ~16% | Traditional leader |
| 2 | GEICO | ~14% | Growing share |
| 3 | Progressive | ~12% | Telematics focus |
| 4 | USAA | ~10% | Military bases |
| 5 | Farmers | ~8% | Full-service |
Washington Car Insurance: FAQs
Can Washington insurers use my credit score?
Yes, currently. The 2021 ban was overturned in 2022. However, SB 5589 (2025) mandates a study on credit scoring's impacts, which could lead to new restrictions. If you have good credit, consider locking in rates now.
Do I have to buy PIP in Washington?
No, but you must sign a written waiver to decline it. Insurers are required to offer PIP ($10,000 minimum). Most drivers keep PIP because it covers your medical expenses regardless of fault.
Will my Kia/Hyundai be harder to insure?
Possibly. Some insurers are charging higher comprehensive premiums or requiring the free software update before issuing policies. Contact your dealer for the update—it significantly reduces theft risk.
Why is Spokane so much cheaper than Seattle?
Eastern Washington has lower population density, less traffic, fewer thefts, and lower medical costs. The cultural and economic divide between the Seattle metro and eastern WA is reflected dramatically in insurance rates.
The Bottom Line on Washington Car Insurance
Washington's insurance market is in flux. The credit scoring debate isn't settled, the Kia/Hyundai theft crisis is driving up comprehensive costs, and the Seattle-Spokane rate divide is one of the widest in America.
Smart moves: If you have good credit, lock in rates before potential legislation eliminates credit-based discounts. If you own a Kia/Hyundai, get the software update immediately. Eastern WA residents enjoy some of the best rates in the Pacific Northwest.