Legal responsibility insurance for half-pregnant car insurance | New Jersey Legislation Journal – Legislation.com
In my recent article in the Law Journal, "A dirty little secret in auto insurance: Can lawyers change anything? " I explained the little-known practice of using income proxies in auto insurance in New Jersey. In particular, it unearthed the dirty secret that many of the publicly traded insurance companies, including those with very famous names, charge significantly higher fees to drivers with immaculate tickets just because they have lower-paying jobs, are unemployed or not because they don't have at least a college degree, a credit score over 700 or own a home. Every day, the auto insurance industry mistakenly takes these factors into account when determining eligibility or calculating insurance rates for a particular person. It should come as no surprise that this practice disproportionately harms low-income and minority communities, and essentially discourages people from economic opportunity simply because they are more likely to be poor.
Despite numerous Consumer Watch Group studies and their criticism of this practice, drivers are not warned that their socioeconomic status means that they are charged higher tariffs or that they are sent to less attractive insurance policies. The result: voters and consumers do not complain. However, the absence of formal and filed complaints does not mean that it is not happening and the practice should not be banned. The time to act is now.