Reps. Watson Coleman, Tlaib Take Steps to Prevent Automotive Insurance Discrimination With PAID Act
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- Reps.
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Today, Representatives
"Car insurance is absolutely necessary for most American families, so when companies raise rates for unfair, undisclosed, and unproven reasons, families are going to be hurt," said
"I am proud to be partnering with Congresswoman
"Residents across this country deserve equity in auto insurance. For some people, auto insurance cost make up more than 18% of their income. The affordable percentage of income for auto insurance nationally is 2%. Immediate action to bring relief to families is needed. I look forward to working to get the PAID Act passed with Rep. Waston-Coleman."
Ever more frequently, insurance companies use so-called income proxies to set automotive insurance rates, despite no evidence that indicates such factors identify risky drivers. Use of these proxies results in higher rates charged to lower-income drivers while more affluent drivers see savings, costing working families billions of dollars each year. The PAID Act would ban these practices by:
Barring the use of the following characteristics for calculating rates or deciding eligibility:
Education;
Occupation;
Employment status;
Home ownership status;
Credit score, consumer report;
Gender;
Zip code or adjacent zip codes;
Census tract;
Marital status;
Previous insurer, or
Prior purchase of insurance.
Empowering the
Every state except
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