House Resolution 336, reintroduced in the U.S. House of Representatives as the Prohibit Auto Insurance Discrimination Act, seeks to ban auto insurers from using non-driving-related factors such as credit scores, occupation, education, employment status, gender, ZIP codes, census tract, homeownership, previous insurer, and prior insurance purchases when setting premiums.
The bill would assign enforcement responsibility to the Federal Trade Commission, which would also have authority to issue regulations to support enforcement.
Lawmakers sponsoring the bill argue that using these factors raises insurance costs for lower-income drivers while reducing rates for wealthier individuals.
Auto insurance premiums in the U.S. could rise 14% by the end of 2025 due to new tariffs on imported vehicles and parts.
The expected increase in claims costs—estimated between $26bn and $52bn—reflects rising repair prices, new car costs, and pressure on used car markets. Insurers are already responding with higher rates and cost controls, but face limits to further efficiency gains.
Additional tariffs on goods from China, Canada, and Mexico may push premium increases to 19%. As market leaders assess the impact, policyholders should expect continued volatility and limited room for rate relief in the near term.
Tariffs imposed by the Trump administration could increase claims costs for P&C insurance by $10 bn to $36 bn, according to the APCIA. Personal auto insurance would likely face the most significant cost increases, potentially rising by $24bn.
Rep. Rashida Tlaib, representing Michigan’s 12th District where auto insurance rates rank among the highest in the U.S., criticized the current rating practices.
She stated that ZIP codes and education levels are weak predictors of driving performance, and that their use in pricing keeps low-income residents trapped in financial hardship.
Yet auto insurance companies use these predatory and discriminatory practices when determining rates. Auto insurance discrimination continues to keep our residents in the cycle of poverty.
Rashida Tlaib
Insurers argue that the banned criteria help differentiate risk more accurately. The industry has resisted similar measures in several states and has mostly succeeded in preventing them from becoming law.
Because nearly every state except New Hampshire and Virginia requires drivers to maintain auto insurance coverage, the bill’s supporters stress that premiums are not optional expenses for most households.
