TRENTON, NJ— Four candidates vying to be New Jersey’s next governor have committed to banning the use of income proxies—such as education, occupation, and credit scores—in setting car insurance rates, the African American Chamber of Commerce of New Jersey (AACCNJ) announced Tuesday.
The agency criticized Jack Ciattarelli, Josh Gottheimer, Mikie Sherrill, and Steve Sweeney for not singing the DEI auto insurance pledge.
Ras Baraka, Sean Spiller, Steve Fulop, and radio personality Bill Spadea each signed a campaign pledge initiated by AACCNJ, signaling their intent to outlaw the practice within 30 days of taking office if elected.
The announcement comes after the March 25 AACCNJ State of Black New Jersey Economic Summit, which emphasized accountability and equity for the state’s Black population.
“In this upcoming gubernatorial contest, there are a few policy issues that would make a significant impact on economic opportunities and disposable income for Blacks if they were modified or abolished in New Jersey,” said John E. Harmon, Sr., President and CEO of AACCNJ.
According to AACCNJ, most insurers in New Jersey—except CURE Auto Insurance, a chamber member since 2016—use income proxies to determine premiums, practices the organization says disproportionately burden low-income and minority communities.
An internal industry study cited by the AACCNJ found that drivers with lower credit scores, no college degree, and blue-collar jobs pay up to 40% more for car insurance.
Other gubernatorial hopefuls— Mikie Sherrill, Josh Gottheimer, Jack Ciattarelli, Jon Bramnick, and Steve Sweeney—have not signed the pledge, according to the chamber.
Background and context
The pledge states that basing insurance premiums on income proxies “shall be deemed ‘unfairly discriminatory’ in accordance with NJSA 17:29A-7.” Signatories vow to implement the ban on such practices within a month of assuming office, arguing that income-based rate setting penalizes residents already at an economic disadvantage.
“By basing rates on such variables, the car insurance industry has created an unjust class system,” the pledge reads. It further asserts that these practices must end or insurers unwilling to comply should “do business elsewhere.”
Black New Jerseyans, who make up 14% of the state’s population, experience significantly higher rates of poverty and unemployment.
Their average net worth stands at $17,000 compared to $322,000 for white residents. Additionally, Black homeownership trails white homeownership by 30 percentage points.
The AACCNJ summit also emphasized the political and economic significance of the Black community in New Jersey, noting their disproportionate contribution to state spending and consistent electoral support for majority party candidates in recent election cycles.
Key Points
- Four gubernatorial candidates—Baraka, Spiller, Fulop, and Spadea—have pledged to ban income-based car insurance rating factors if elected.
- AACCNJ claims income proxies like education, occupation, and credit scores unfairly burden Black and low-income residents.
- Other major candidates including Sherrill, Gottheimer, Ciattarelli, Bramnick, and Sweeney have not signed the pledge.
The AACCNJ continues to press for changes in public policy to ensure equitable economic opportunities for the 1.2 million Black residents and over 88,000 Black-owned businesses in the state.
Pledging candidates say the current system rewards high-income drivers while punishing the economically disadvantaged, regardless of their driving behavior or safety record.