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During the final quarter of 2020, the auto insurance shopping rate averaged 4.7%, while new business volume grew quarter-on-quarter at an average of 3.9%. (Credit: Africa Studio/Shutterstock.com) Sponsors of the bill claim that current practices are absurd and that the legislation will hold insurers accountable and help ensure that vulnerable citizens are getting fair prices. (Credit: Africa Studio/Shutterstock.com)

New Jersey has begun to take steps to prohibit auto insurance companies from using certain factors, including a driver’s credit score, occupation, and education level, as factors to establish coverage rates.

The State Senate recently approved a bill that seeks to end the industry’s use of socioeconomic factors. Sponsors of the legislation say that the use of socioeconomic factors in determining coverage rates is unfair and discriminatory against low-income drivers.

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