Representative Geraldo Alicea (D-Charlton) recently outlined his opposition with the Patrick Administration’s deregulation of auto insurance rates and signed on as a co-sponsor to legislation that would continue to protect consumers when purchasing auto insurance. 

“I believe the deregulation of the auto insurance industry will be harmful and discriminatory against many of the drivers in the 6th Worcester District. Factors such as gender, marital status, education, occupation, home ownership and other social and economic factors should never be a part of the process car insurance agencies use to determine rates,” stated Alicea. “I urge House leadership to take up this important bill in order to prevent this important change from occurring. This piece of legislation will ensure that these discriminating factors will never be used by auto insurance companies to drive up the prices for specific drivers.”

The current deregulation proposed by the Patrick administration only prevents insurance companies from using socioeconomic factors in determining rates for one year. The legislation, “An Act to Provide for Further Consumer Protection in Auto Insurance”, prevents insurance companies from using any factor other than driving record in determining the rates paid by the insured. 

When deregulation occurred in New Jersey, New Jersey Citizen Action compiled more than 400 rate quotes using Geico’s website and said the average quote for someone without a bachelor’s degree with 19 percent higher than the average quote for someone with the degree.