The "Car Insurance Reduction Act" aims to reform the requirements for automobile insurers in New Jersey regarding underwriting practices, rate calculations, and reporting obligations. The bill mandates that insurers must consider driving record characteristics when formulating underwriting rules, while explicitly prohibiting the use of factors such as an insured's credit history, education level, or occupation. Insurers are also required to 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 stipulates that insurers must allow consumers to compare coverage options and estimated premiums online.

Furthermore, the legislation introduces provisions for premium rate reductions based on safe driving behavior, with the option for insurers 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 and making recommendations for improvement every three years. Insurers are also required to submit necessary data to aid in the 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