Sponsors (3)
The bill strengthens consumer protections—reducing discriminatory uses of non-driving data, increasing transparency, and expanding enforcement and remedies—but does so at the likely cost of higher premiums for some drivers, greater compliance and litigation burdens on insurers, potential market withdrawal in some areas, and added regulatory complexity.
Drivers in protected and lower-income groups (e.g., racial minorities, low-income individuals) are less likely to be charged higher rates or denied coverage due to income-proxy factors, ZIP code, or credit-score-related criteria because the bill restricts those uses and requires testing for disparate impact.
Consumers, regulators, and advocates get greater transparency because insurers must make underwriting rules and rate filings public and the FTC will follow APA rulemaking, improving oversight of how rates and algorithms are set.
Consumers harmed by unfair insurer conduct gain stronger remedies — private suits, statutory damages/attorneys’ fees, and expanded state authority to seek restitution and injunctive relief — increasing deterrence and compensation for wrongdoing.
Many drivers (especially middle-class households and some who currently benefit from certain underwriting discounts) could see higher premiums as insurers raise rates or reduce discounts to offset restrictions on underwriting variables and lost predictive data.
Insurers will face increased compliance, reporting, model-testing, and litigation costs (including per-violation penalties), which are likely to be passed on to consumers and increase market uncertainty.
Requiring public disclosure of underwriting rules and algorithms could expose proprietary methods, reducing incentives for innovation and competition in risk modeling and possibly harming long‑term consumer outcomes.
Based on analysis of 7 sections of legislative text.
Bans auto insurers from using income-related factors and proxies to set eligibility or rates, requires FTC oversight and public rate filings, and creates civil penalties and private lawsuits.
Introduced May 29, 2025 by Bonnie Watson Coleman · Last progress May 29, 2025
Prohibits private passenger auto insurers and their affiliates from using certain personal characteristics or common proxies (for example, education, occupation, credit score, ZIP Code, home ownership) to decide who can buy a policy or to set rates, discounts, cancellations, or other premium impacts. Requires regular reporting to the Federal Trade Commission to show underwriting and pricing practices do not disparately impact protected classes, makes underwriting rules and rate filings public, creates civil penalties and private lawsuits for violations, and takes effect one year after enactment.