Why do auto insurance companies request rate increase approvals from state regulators and not the consumers?

Found out State Farm has recently jacked up its auto rates in Washington State and wanted to know why I didn’t know before hand.

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Because they are not required to do so. If the law did not require them to get approval from the regulators, they would not do that either.


Because they are regulated by the states, not by you.


The insurance company is obligated to the state to justify rate increases or decreases, not to the client. Similiarly, you are not obligated to the company to stay with them when they increase the rates. Go to Nationwide or Hartford. They are great companies. State Farm is awful.


That is like asking the store owner to set the prices according to the customers desire to only pay like 2 cents.


Because the state regulators, by law, must approve the rates, before they can be used.

If a consumer doesn’t “approve” of the rate, they don’t have to buy that insurance. Consumers vote with their dollars – by getting car insurance from a different company.