Lawmakers and advocates want to ensure insurance companies don't discriminate against undocumented immigrants
Concerns have cropped up about the ways in which insurance companies calculate their rates and some fear the newly eligible drivers could face discrimination or be forced to unfairly pay sky-high premiums.
Assemblyman
Proponents of the new law have argued that it will make the roads safer and point to other states where insurance rates and accidents decreased following the passage of similar legislation.
In
For the most part, driving history determines the price of car insurance. But other factors related to demographic information is also used to determine rates including education level, occupation, and ZIP code.
A ProPublica analysis from 2017 confirmed what many had believed for years: that minority neighborhoods pay higher car insurance premiums than predominantly white neighborhoods with similar risk factors.
The state
The agency will also be issuing guidance to auto insurers and consumers as drivers newly licensed under
Crespo will be pushing a pair of bills next year that will prohibit auto insurers from discrimination on the basis of "socioeconomic factors in determining algorithms used to construct actuarial tables, coverage terms, premiums and rates."
Rev.
"For years, some of the most vulnerable drivers across the country have been subject to outright racism, sexism, classism, and ageism," Foy wrote. "By charging these drivers such high rates, car insurance companies are holding back struggling New Yorkers from improving their financial position in life."
"With hundreds of thousands of new drivers getting licensed, now is the time for
Timm touted his own company's approach to insurance as a way to avoid discrimination based on where a driver lives or their socio-economic status.
"The fastest way to break this costly and discriminatory spiral is to push car insurers to rate drivers primarily on how well they actually drive, not the demographic category they fall in or where they live," he said.
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