Mark Takano

From the office of:

Mark Takano

Sending Office: Honorable Mark Takano
Sent By:

        Request for Cosponsor(s)

Prevent Discrimination in Auto Insurance – Cosponsor the FAIR RATES Act

Dear Colleague:

Help protect minority drivers from being forced to overpay for car insurance and cosponsor H.R. 2684, the Fair Auto Insurance Ratemaking Reporting to Allow a Transparent Evaluation of Statistics (FAIR RATES) Act.
This bill will require auto insurers to release the data needed to spot discrimination in ratemaking.
It directs the Federal Insurance Office (FIO) to collect and disclose specific data from large automobile insurance providers and submit a comprehensive report to Congress on disparate impact in automobile insurance.


that many drivers living in minority communities pay higher premiums for automobile insurance compared to drivers from less diverse neighborhoods of similar risk. Some auto insurers were found to be unfairly overcharging consumers by up to 30 percent.
Insurance companies maintain the reason for this is based on measured risk but yet refuse to release the complete data needed to back up their long-held explanation.

However, the Treasury Department promised to gather additional data from insurance companies after the FIO published a

in January 2017 that found nearly 20 million Americans do not have access to affordable automobile insurance, many of which are living in predominately minority or underserved communities. The FIO
said the study was the first in a series to address the issue, and that it expected to obtain zip code level loss data from auto insurers during 2017. This granular loss data
is the missing element that, if evaluated with premium costs and demographic data, can better tell if the hikes many minority drivers face are justifiably caused by risk. A year and a half later, that data still hasn’t been collected from insurers. Since President
Trump took office, the FIO hasn’t taken a single step to address affordability or discrimination in auto insurance, and Republican leaders in Congress are trying to
abolish the office entirely. Additionally, state regulators

a proposal five years in the making that would establish a new data collection process from insurers to better evaluate the availability and affordability of auto insurance.

In order to protect consumers, understand the cost discrepancies we observe in minority communities, and better evaluate recent
steps to thwart discrimination in auto insurance, Congress needs to make sure that auto insurers publicly disclose necessary data. The time for this is past due, cosponsor the FAIR
RATES Act today.

If you have any questions or would like to cosponsor this bill, please contact Brien Courchene in Congressman Takano’s office at or 5-2305.



Mark Takano

Member of Congress

Related Legislative Issues

Selected legislative information: Civil Rights, Consumer Affairs, Finance

Related Bill Information

Bill Type: H.R.
Bill Type: 2684
Special Note:

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