Bill aims to prevent insurance companies from asking for education, income information
A bill sponsored by a New Jersey congresswoman would potentially ban the practice of charging higher rates on insurance to people with less education.
WINK News conducted a demonstration last November with a local bartender which showed that if she changed her occupation to lawyer when filling out an auto insurance quote, she could save up to $15 per month.
An independent insurance agent said occupation and education are just two elements companies use to determine risk when providing a quote, in addition to driving and accident records.
However, not all insurance companies ask about a person’s occupation and education to determine rates.
An insurance company owner from New Jersey who felt this practice was discriminatory told WINK News that he planned to lobby congress to ban the practice altogether.
“There’s something wrong when the fact that someone who has a four year college degree that lives next door to the same car, same driving record gets to pay half the rate of somebody who doesn’t have a four year college degree,” said Eric Poe with Cure Insurance.
The bill would prohibit certain income information from being used to set insurance rates. It was filed last week and will be heard by the House Financial Services Committee.
WINK News will tell let you know the outcome as soon as it happens.
Visit the House committee’s website here for more information.