Prohibiting Auto Insurance Discrimination: Fairer Rates for All Drivers
This new law aims to stop car insurance companies from using factors like education, occupation, employment status, home ownership, or credit score to set insurance rates. It seeks to prevent higher charges for lower-income individuals, ensuring fairer premiums for all drivers regardless of their social or financial standing.
Key points
Insurers will be prohibited from using gender, education level, occupation, employment status, home ownership, ZIP code, marital status, credit score, or previous insurance history to determine car insurance rates.
Insurance companies must regularly demonstrate that their practices do not discriminate against customers based on race, gender, or other characteristics.
All underwriting rules and rate filings will be publicly available, increasing transparency.
Consumers can sue insurers for violations, and the Federal Trade Commission will enforce the act.
Introduced
Citizen Poll