State: Don’t gouge immig car insurance

ALBANY — State officials are taking steps to ensure undocumented immigrants who can now apply for a driver’s license are protected from discrimination by auto insurers based on their status.

The state Department of Financial Services and the Division of Human Rights sent a warning Thursday to insurance companies instructing them to treat immigrants granted access to licenses under the “Green Light Law” like any other driver.

“DFS has been a national leader in investigating and prohibiting unfair and discriminatory practices in the setting of insurance rates, and we will continue to be vigilant as members of New York’s immigrant community become licensed drivers,” said Superintendent Linda Lacewell.

The state is stepping up its oversight after concerns cropped up about the ways in which insurance companies calculate their rates and some fear the newly eligible drivers could face discrimination or be forced to unfairly pay sky-high premiums.

While the state has long made clear that insurance companies can’t use a driver’s race, occupational status or education when setting rates, the reminder puts pressure on the firms to avoid discriminating against all drivers.

The guidance advised insurers that they need to eliminate any bias, disparate impact or factor usage based on citizenship, or legal status in the United States in any data sources, algorithms or predictive models used for underwriting or rating purposes.

They must also recognize that a licensed undocumented immigrant may have a driving history in their place of origin that could be considered for underwriting purposes. Auto insurance companies often base rates on a driver’s track record.

Companies also cannot deny coverage or access to discounts or programs based on citizenship or legal status.

“Discrimination against immigrants who are legally authorized to drive puts up an appalling roadblock to economic equality. It is unfair and it is against the law in New York,” said Human Rights Division Commissioner Angela Fernandez.