In New York, a new bill introduced on March 6, 2026, could bring big changes to how auto insurance rates are set. The proposed law aims to stop insurers from using common factors like credit scores, zip codes, and income to decide premiums.
Assembly Bill A. 10524, introduced by Assembly Member Lunsford, seeks to overhaul Section 2331 of New York’s insurance law. The bill would ban insurance companies from considering things such as credit scores, education, income, home ownership, property value, and even employment details when setting rates. It also limits how zip codes and other geographic markers can be used—only allowing them to play a role if they reflect local auto-related crimes or accidents. Even then, geography could only affect up to 25% of the premium for rating purposes and would be completely off-limits when deciding whether to issue or cancel a policy.
One of the most notable parts of the bill focuses on fairness in technology use. Insurers would need to prove that their marketing, underwriting, claims handling, fraud investigations, and any algorithms they use do not unfairly affect people based on race, ethnicity, gender, sexual orientation, disability, or other protected categories.
The bill also adds a system requiring insurers to get prior approval for any rate changes. They must provide full documentation to the insurance superintendent and wait at least 60 days before changes can take effect. If a proposed increase is large—more than 7% for personal auto insurance or 15% for commercial—the bill calls for a hearing if requested. The superintendent must ensure rates are fair and mathematically justified, without considering competition when judging if rates are excessive or too low.
Transparency is a key feature. Information about rate changes would be publicly available online, without any login needed. People could review applications, post comments, and even ask to take part in the rate review process.
Regulators would have 90 days after the bill becomes law to set new rules for rate filings and approvals. Meanwhile, insurers could not file for rate increases unless they prove they need them to actually earn reasonable profits. Within 180 days, rules would also be made to check that insurers follow the new fairness standards.
To pay for all these new steps, the bill would charge insurers an annual fee equal to 0.05% of their previous year’s earned premiums.
If passed, the law would start 90 days after its enactment. Currently, the bill is still in committee and has not been voted on yet.
This bill could change how auto insurance works in New York by making rates fairer and more transparent, while keeping an eye on how new technologies impact everyone equally. Other states like Illinois and Iowa are also looking at big changes, signaling a nationwide conversation about fairness in insurance pricing.