Insurance can support the financial stability of Texas families, but only if it is fairly priced and appropriately compensates customers in the event of a covered loss. Studies looking at the pricing of auto insurance are finding that many companies set pricing based on unfair and discriminatory factors such as gender, marital status, occupation, education level, or zip code. Our report, Out of Alignment, found that of five insurance companies tested, four charged women, people who are divorced, and widows different prices simply based on their gender or marital status, with women most often being charged more. Auto insurance is of particular concern because all Texans who own a vehicle are required by law to purchase basic liability insurance.
Recent data from the Consumer Federation of America also documents that drivers in low- and moderate-income communities of color often pay significantly more than neighbors in wealthier zip codes with predominately white residents for the same level of auto insurance coverage. Too many safe drivers in Texas face premiums that appear to be driven more by the marketing goals of insurance companies than the actual risk that they will cause an accident. Fair, nondiscriminatory insurance pricing supports the wellbeing of families as well as the integrity of our markets, and it is important that we have strong consumer protections in place.