Governor Andrew Cuomo has moved to limit the factors car insurers may use when determining a driver’s car insurance rate. The new regulation follows a report by the Department of Financial Services (“DFS”), which Gov. Cuomo had tasked with investigating the issue, detailing that some, but not all, of New York auto insurers utilize an applicant’s education and occupation as factors when determining insurance rates.
This often results in individuals with lower educational levels or those working in low-paying occupations having to pay higher rates. According the Cuomo administration, these higher rates are unjustified because there is insufficient evidence that a person’s education or occupation is indicative of his or her driving ability. Lacking sufficient justification, Gov. Cuomo stated that the use of such factors was a violation of Insurance Law provisions which prohibits insurance rates that are “excessive, inadequate, or unfairly discriminatory.” Continue reading