An Act relative to auto insurance costs for traditionally low-and moderate income communities

194th Legislature (2025-2026) Introduced by Frank Moran

The bill requires a study on how zip code-based auto insurance pricing affects premiums, especially for low- and moderate-income drivers, to guide potential reforms.

Overview

HD 845 seeks to require the Massachusetts Commissioner of Insurance to study how geographic location data (specifically zip codes) influences auto insurance rate calculations. The bill aims to determine whether there are disparities in premiums across income levels, after accounting for driving factors, and to assess any discriminatory impact on drivers in low- and moderate-income communities. The goal is to inform future policy decisions based on the findings.

Key Provisions

Mandated study by the Commissioner of Insurance. The commissioner must conduct an investigation and study on the impact of using geographic location data in auto insurance rates.

Minimum areas of evaluation. The study must evaluate, at a minimum:
1) Auto insurance premiums for each zip code in the Commonwealth.
2) Differences in premiums for drivers with equivalent driving factors (e.g., accidents and miles driven per year) across low-income, moderate-income, and high-income zip codes.
3) Risk factors associated with each zip code in the Commonwealth.
4) The discriminatory impact on drivers in low- and moderate-income zip codes.

Deliverables. The commissioner must make recommendations and submit findings to:

Joint Committee on Transportation
House and Senate Committees on Ways and Means

Timeline. The findings and recommendations must be submitted no later than December 31, 2026.

Purpose and Policy Intent

To determine whether geographic-based pricing in auto insurance contributes to inequities for traditionally low- and moderate-income communities.

To assess whether current rating practices reflect risk accurately or produce disproportionate costs for certain neighborhoods.

To provide evidence-based guidance to legislators and regulators on potential reforms to auto insurance rating practices.

Affected Parties

Consumers: Drivers in low- and moderate-income zip codes who may be paying higher or unanticipated premiums relative to comparable drivers in other areas.

Insurance carriers: Regulated entities whose rating practices would be characterized in the study.

Regulators and policymakers: Massachusetts Commissioner of Insurance and legislative committees (Transportation, Ways and Means) who would use the findings to consider potential changes.

Procedural and Timeline Notes

Status and process: The bill is a proposed measure in the 2025-2026 General Court. It directs a regulatory study rather than immediate rate changes.

Reporting deadlines: Findings and recommendations due by December 31, 2026, with delivery to specified legislative committees.

Next steps after the study: The bill does not itself enact rate changes; it lays groundwork for possible future legislation or regulatory actions based on the study results.

Bill