For Consumers

Insurers must explain premium increases

Insurers must tell you why your premium is increasing

A new rule requires all insurance companies to tell their policyholders the reasons behind a premium increase. The new regulation applies to auto and homeowners insurance, including manufactured homes, condominiums and renters insurance. In June 2027, insurance companies will be required to provide even more information. 

Between  June 1, 2024 and until June 1, 2027

  • When a policy renews and the premium increases, insurance companies must give policyholders who ask reasonable explanations using terms they can understand.

Beginning on June 1, 2027

  • Insurers must provide a written notice to policyholders receiving a premium increase of 10% or more explaining the primary factors that caused the increase. They must also provide this same notice to any policyholder who asks for one.
  • Primary factors include: the location of the vehicle, driving record, miles driven, number of drivers, number of vehicles, claims history, discounts, fees and surcharges, age, credit history, education, gender, marital status, occupation, property age, location and value. Additional factors may also be included.