The Car Insurance Reduction Act modifies existing laws governing automobile insurers in New Jersey, particularly focusing on underwriting practices, rate calculations, and reporting requirements. Key changes include the requirement 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 also 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, consumers will be able to compare coverage options and estimated premiums through the insurer's website.

The bill mandates that private passenger automobile insurers offer premium rate reductions for safe driving behavior, with the option to utilize telematics systems to assess compliance. Furthermore, 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 and making recommendations for improvement every three years. Insurers are also required to submit necessary data to facilitate fraud detection and enforcement of the New Jersey Insurance Fraud Prevention Act. The act will take effect 90 days after enactment and will apply to policies issued or renewed thereafter.

Statutes affected:
Introduced: 17:29A-46.2