New push to prevent auto insurers from discriminating against you

Taking Action

(WRIC) — There’s a new push to prevent auto insurance companies from discriminating against you.

Earlier this year, 8News uncovered two factors that could be driving up the cost of your car insurance.  Those two factors are education and occupation. 8News found the higher your education, the better your job – the less you pay.

A bill that would put the brakes on this practice has just been re-introduced in Congress this week.

It’s called the PAID Act, which stands for Prohibit Auto Insurance Discrimination Act, with additional lawmakers supporting it.  

The bill would ban car insurers from using your income, education level or other factors unrelated to your driving record to determine your rate.

A previous investigation saw 8News obtain quotes for a Chesterfield driver and found every time we gave her a college diploma and made her a doctor- she got a better rate. 

Supporters of the bill argue that’s unfair and believe that auto insurance rates should only be based on your record behind the wheel, the miles you drive each day and your driving experience.  

Eric Poe, the Chief Operating Officer for CURE, a non-profit auto insurance company, supports the measure. CURE doesn’t use education or occupation to determine a driver’s rate.

Poe told 8News the practice is discriminatory and lacks transparency.

“Nobody knows you are going to pay 30 to 40 to 50 percent more simply because you don’t have a four-year college degree,” Poe said.

Insurers and insurance associations are lobbying against the measure. Why? They argue education and income have been proven to accurately reflect the risk of loss.

They also call it an intrusion of state-based regulations.

In the meantime, since 8News’ first report on the matter, the state of Michigan has moved to ban the use of education in determining car insurance rates.

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