Unfair Discrimination in Automobile Insurance

Summary

This practice note discusses unfair discrimination in the sale and underwriting of automobile insurance. Discrimination in insurance is a topic of long-standing regulatory concern. Some consumers may feel that they have been subject to discrimination in their attempt to get insurance or in the premium charged. However, a feeling is an insufficient basis on which to bring a regulatory complaint or a civil suit. Insurers formulate underwriting guidelines that specify the parameters of the risks they are willing to assume. They develop rates based on the risk factors involved in the property, activity, or person to be insured. Rates and premiums are determined by the insurer or on its behalf but are ultimately subject to approval and oversight by a state insurance regulator.