PAID Act

This bill stops car insurance companies from using non-driving factors to set your rate or decide if you qualify for a policy. Banned factors include your gender, job, level of education, employment status, whether you own a home, your ZIP code or census tract, marital status, credit score or credit-based insurance score, consumer report, your previous insurer, or whether you bought a prior policy from them. If any of these are used in a way that affects your price, eligibility, discounts, or policy terms, it’s a violation .

The bill also adds transparency and enforcement. Insurers must regularly show the Federal Trade Commission (FTC) that their marketing, pricing, claims, and fraud systems—including any algorithms—do not unfairly harm people based on traits like race, religion, sex, sexual orientation, disability, or gender identity/expression. Their underwriting rules and rate filings must be open to the public. The FTC can enforce the law and fine violators at least $2,500 per violation. Consumers can sue for damages and attorney’s fees, and state attorneys general can also take action. The law would take effect one year after it’s enacted .

• Who is affected: Drivers and private passenger car insurers.
• What changes: Certain personal and financial factors can’t be used to set rates or eligibility; more public transparency; FTC and courts can enforce the rules .
• When: Starts one year after enactment.