Help Stop Discrimination in Auto Insurance Rates!
The FAIR Act (A1674/S357) would prohibit the use of education, occupation, and credit score as rating factors in automobile insurance underwriting. This will help make auto insurance more affordable for good drivers in New Jersey and eliminate unfair discrimination in auto insurance markets that disproportionately impacts people of color.
Credit score, education, and occupation do not reflect consumers’ driving history, but do serve as proxies for income and race. Basing auto insurance premiums on these factors is discriminatory.
- Good drivers with poor credit pay more than double for auto insurance, and even drivers with good credit pay $199 more than those with excellent credit.
- Education is highly correlated with income level and ethnicity.
- Numerous auto insurers charge 10%, 20%, or even 40% more to good drivers with low wage jobs.
All drivers are required to purchase auto insurance and many NJ residents cannot make a living without a vehicle. It should not more expensive for NJ residents of color. The FAIR ACT would end the use of factors that unjustly increase consumers’ insurance costs, increase the number of uninsured drivers, and perpetuate systemic racism. Auto insurance premiums should be based on your driving ability, not your socio-economic status or race.
Add your voice and urge the Legislature to post and pass the FAIR Act!