The Car Insurance Reduction Act aims to reform the requirements for automobile insurers in New Jersey regarding underwriting practices, rate calculations, and reporting obligations. Key provisions include the mandate for insurers to consider driving record characteristics while explicitly prohibiting the use of an insured's credit history, education level, or occupation in formulating underwriting rules. Insurers must provide a detailed explanation of the rating plan used to determine premiums, including any factors unrelated to the driving record, and make this information accessible on their websites. Additionally, the bill requires insurers to allow consumers to compare coverage options and estimated premiums online.

Furthermore, the bill establishes a requirement for private passenger automobile insurers to offer premium rate reductions for safe driving behavior, with the option to utilize telematics systems to assess compliance. The Department of Banking and Insurance, in collaboration with the Office of the Insurance Fraud Prosecutor, is tasked with reporting on activities related to insurance fraud detection, with the first report due within 18 months of enactment and subsequent reports every three years. Insurers are also required to provide necessary data to facilitate fraud detection and enforcement of the New Jersey Insurance Fraud Prevention Act.

Statutes affected:
Introduced: 17:29A-46.2