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, the bill mandates that insurers allow consumers to compare coverage options and estimated premiums online.

Furthermore, the bill establishes a framework for premium rate reductions based on safe driving behavior, with insurers permitted to utilize telematics systems to assess compliance. It also requires the Department of Banking and Insurance, in collaboration with the Office of the Insurance Fraud Prosecutor, to report on activities related to insurance fraud detection and make recommendations for improving data sharing between state agencies and insurers. Insurers are obligated 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 apply to policies issued or renewed thereafter.

Statutes affected:
Introduced: 17:29A-46.2