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, which must be accessible on their websites. Additionally, consumers will be able to compare coverage options and estimated premiums directly on 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 improved data sharing among state agencies and insurers. Insurers are also required to provide 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