Car Insurance Firms Could Be Banned From Asking What You Do for a Living
Source: WSJ Article 11/17/2016
In most of America, your job can affect how much you pay for car insurance. Now, a state regulator is weighing whether to ban the practice.
The New York Department of Financial Services has told Allstate Corp., Berkshire Hathaway Inc.’s Geico unit, Liberty Mutual and Progressive Corp. to explain why the practice of using occupation and education in pricing shouldn’t be prohibited, according to people familiar with the matter. The move has reopened a long debate among regulators, insurance companies and consumer advocates about what data should be used in setting rates and what should be prohibited even if it is effective at identifying risks.
Thus far, insurers have been winning. The industry has long used factors like age and gender to help set rates, and has won the right in many states to use credit scores as well.
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