Usage-based Automobile Insurance, Washington, 2012

  • Date Enacted: Mar 5, 2012

Summary

On March 5, 2012 the State Legislature passed a bill aimed at eliminating existing regulatory barriers to offering usage-based automobile insurance policies. It also authorized the insurance commissioner to approve the offering of such policies. [1] Usage-based insurance also known as pay as you drive or mile-based insurance is a type of vehicle insurance where the costs are determined by driving behavior. Devices take measurements of variables that are of interest to underwriters: miles driven; time of day; where the vehicle is driven; acceleration speed; breaking strength; and air bag deployment. [2] Prior to the passage of this legislation nothing prevented insurance companies from offering usage-based insurance. However, under Washington state law all auto insurance products are approved by the Office of the Insurance Commission, including information a company might deem confidential. The bill exempts from public inspection information associated from with an auto insurance filing for a usage-based insurance product that constitutes a trade secret. [3] 

Details:

An act relating to usage-based automobile insurance and exempting certain usage-based insurance information from public inspection; amending RCW 48.19.040 and 42.56.400; and adding a new section to chapter 48.18 RCW eliminating the existing regulatory barriers to offering usage-based automobile insurance policies and authorizing the insurance commissioner to approve the offering of such policies. Exempts from public inspection, information associated with an auto insurance filing for a usage or mileage-based insurance product that constitutes a trade secret. Citation: HB 2361

Resources

1.  Engrossed Substitute House Bill 2361

2.  Usage-Based Insurance and Telematics, Center for Insurance Policy and Research (CIPR)

3.  Car sharing and usage-based insurance bills move forward, Washington state Office of the Insurance Commissioner

Citation: HB 2361

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  • Washington, US
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