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Washington state officials explain why car insurance premium are on the rise

State officials say the two main reasons car insurance premiums are increasing are due to higher car repair costs and more crashes.

SEATTLE — Washington drivers can expect to see their car insurance premiums increase by around 20% this year. The Washington State Office of the Insurance Commissioner said this increase is due to two things: more crashes on Washington roads and rising car repair costs.

Eric Berge who owns Werner’s Crash Shop in Seattle said that car part prices have been increasing over the past two decades. He has worked at the shop for nearly 40 years and has seen a lot of change.

“You see side mirrors that are in the $1,500 to $2,000 range. You know, instead of being your simple side mirror, where it's like 150 bucks or something like that,” said Berge. “You see some headlights for up to the $3,000 range for a headlight.”

He said some of those mirrors are so expensive because radar technology.

Berge said this increase in costs for car parts and repairs is due to new cars being more technologically advanced and involved. He said the type of car plays a role too.

“A simple fender bumper repair on a German car with all the reprogramming and the cameras in the front of it, it was like $14,000 when it was all done,” said Berge. “But you know, then you have your Toyota Corolla or your Prius, the same repair might be $3,000 or $4,000.”

The increase in the cost of repairs is one of the main reasons state officials said you can expect your car insurance premiums to go up. 

“Rates go up when the costs involved with repairing or replacing cars goes up,” said Aaron VanTuyl, the communications director with the Washington State Office of the Insurance Commissioner.

He said their office approved an average base rate increase of 24% for premiums last year because insurance companies are paying for both more car repairs and for more costly car repairs.

“Cars are more technologically advanced, which means the cost of repairs, both in parts and in expertise of finding somebody that knows how to work on them is also going to go up,” said VanTuyl.

Data from the federal government shows that last year the cost of car repairs increased by 7.1% nationwide. The cost of car insurance saw an average increase of 20.3%.

    

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