In comments to the Maryland Private Passenger Automobile Insurance Affordability Workgroup, the Consumer Federation of America urged the Workgroup to adopt recommendations designed to lower auto insurance costs. Many Marylanders pay unfairly high premiums and struggle to afford coverage, and sometimes even have to drive without insurance because it is too expensive.

Our comments urge the Workgroup to make the following recommendations:

• Adopt prior approval regulation of auto insurance rates;
• Restrict the use of socioeconomic rating factors in auto insurance underwriting and rating and require insurers to demonstrate that their underwriting, rating, claims handling, and anti-fraud algorithms do not disproportionately penalize consumers on the basis of a protected class status, and
• Establish a low-cost auto insurance program for safe drivers with low incomes.