Transparency is one of the most prevalent words used in corporate mission statements today. It can be argued that a company’s perceived truthfulness and open communication with consumers can make or break the business. But what happens when the public is required by law to buy a product that does not come with transparency? That scenario, unacceptable to most, is happening in the world of car insurance, here in New Jersey—and nationwide.

The lack of transparency is glaringly clear as some of the most recognizable car insurance companies—yes the ones flooding the airwaves with discounts and corporate pledges—are using “income proxies” like educational attainment and occupation in determining car insurance rates. Consumers are unaware of the fact that they are being charged higher rates based on these income proxies regardless of whether they have a spotless driving record. To be clear, credit scores require notification under the Fair Credit Reporting Act (FCRA) of an adverse decision being made based on one’s score. In this case, there is no notice required by law for these companies that are making such decisions and charging higher rates to those who do not have college degrees or who hold traditionally lower paying jobs.