Legislation could prevent insurance companies from using jobs and education to determine New Jersey driver rates – CBS New York


NEW JERSEY (CBSNewYork) – In New Jersey, you may be paying more for auto insurance.

It’s not because of your driving record. What you do for a living or if you went to college could have an impact.

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There is a push to change this little-known practice, CBS2’s Meg Baker reported on Friday.

Ron Heisler, a mechanic, was shopping for auto insurance and was unsure why some companies were offering him higher rates. Then he found out that maybe it was because of his job and high school.

“I then went to other companies and applied as a lawyer with a doctorate. and my rate was considerably lower, ”Heisler said.

Heisler said he had a good driving record.

“I have no point. I am 51 years old. I have no complaints, ”he said.

Cure Insurance industry expert Eric Poe is on a social justice crusade and says it’s time to stop charging blue collar workers more. Sometimes it’s 40% more.

“So the cycle of poverty in this country really involves the vehicle,” said Poe. “So for the poor of this country, if you start making the cost of auto insurance so high that they can’t afford a car.”

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But if you have more money and more assets, you often get a discount because you’re more likely to bundle car and home insurance together.

David Snyder of the American Property Casualty Insurance Association, which represents thousands of insurance companies, says these factors are aimed at just one thing:

“Assess as accurately as possible the likelihood of a person having a claim and the cost of that claim in the future,” Snyder said.

If you eliminate the questions about the occupation, Snyder said, “Then you will lose things like discounts for essential workers like teachers and nurses, police, firefighters and the military.”

In New York, it is illegal to ask for this information. But it’s still legal in New Jersey.

A bill to stop using these factors was passed by the New Jersey Senate and now sits in the State Assembly.

“At the end of the day, New Jersey had some of the highest auto prices, literally, in the country,” said MP John McKeon (D). “Fifteen, 18 years ago, we implemented reforms that stabilized them. So we want to be careful not to do anything that would allow these rates to start to soar again. At the same time, we need to balance social justice issues. “

The legislature is expected to revert to this matter in the fall.

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Meg Baker of CBS2 contributed to this report.


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