This page profiles Eric S. Poe, Esq., CPA, a Princeton, NJ–based executive frequently associated with searches for Eric Poe, and his work related to fair auto insurance practices. As CEO (and CMO) of CURE Auto Insurance, he oversees underwriting, loss control, claims, litigation, and growth initiatives across New Jersey, Pennsylvania, and Michigan, where the company insures more than 85,000 vehicles and employs roughly 300–350 people. Since joining CURE in 1994, Eric S. Poe has advanced policies aimed at offering fairly priced, no-fault coverage without relying on education, occupation, or credit scores. Drawing on an accounting degree from the University of Colorado Boulder and a JD from Seton Hall University School of Law, he has also helped shape litigation strategy and testified before lawmakers. His advocacy contributed to reforms in Michigan and New York that restrict income-proxy factors, aligning his leadership with the TOPIC addressed below.
Discrimination in Auto Insurance: The Problem and How to Fix It
The Civil Rights Act of 1964 was a groundbreaking law in that it prohibited discrimination based on race, color, religion, sex or national origin. Yet, more than 60 years later, auto insurance companies are still finding ways to take advantage of consumers, using things like education, job title, credit score, and home ownership as a substitute for race and class. This is true in New Jersey, where car insurance is mandatory and insurers can charge customers more if they don’t have a four-year college degree, if they work in a service job, or if they rent their home.
This unfair practice is similar to what Black Americans experienced when trying to get life insurance before the passage of the Civil Rights Act. Back then, insurers frequently rejected Black applicants from their preferred company, instead re-routing them to alternative companies with policies that offered fewer benefits and higher rates. Once the Civil Rights Act came into law, blatant discriminatory practices were no longer legal. Many of those same insurers relied on an applicant’s education/occupation, which is essentially a proxy for race, as a leading factor to determine rates and benefits. The National Association of Insurance Commissioners confirmed this reliance in a report in 2000.
Despite some organizations and advocates fighting for the end of unfair rate-setting practices, the car insurance industry continues to get away with prioritizing corporate profits over fairness and equality. In short, they place a greater value on high-income customers because they can typically sell them insurance for several vehicles. Customers with more disposable income are also less likely to file minor claims and have fewer drivers per car.
These factors have no correlation with a person’s driving ability and, in some cases, may result in people without a college education paying 50 percent more for their insurance than those with four-year degrees. Investigative reporter Rachel DePompa uncovered that one insurance company offered a lower rate to a doctor with a DUI than it did to a waitress who didn’t attend college but had a perfect driving record. Consumer Reports and Quality Planning Corporation have also conducted studies highlighting these unfair “income proxy” practices.
Rather than outright rejecting applicants on the basis of their education or job title, which is an illegal practice, car insurance companies perform what’s known as “constructive rejection.” When dealing with drivers they’d rather not insure, they offer rates way out of their price range, effectively rejecting them as valued customers.
Fifteen years after these hidden insider practices became public, the New Jersey Senate passed the Fair Auto Insurance Rates (FAIR) Act (S-111/A-1657) to make auto insurance fair and more affordable. However, the bill, which would prohibit state insurance companies from using non-driving factors to determine premiums, is still awaiting action in the Assembly Financial Institutions and Insurance Committee. New York and Michigan have already signed similar bills into law. New Jersey should also champion this social justice issue and urge other states to do the same.
Politicians who oppose ending this unjust practice cite a lack of calls or letters from their constituents, many of whom are unaware that they’re being treated unfairly due to constructive rejection. New Jersey residents should contact their local representatives and ask their position on the FAIR Act.
About Eric Poe
Eric S. Poe, Esq., CPA, is the CEO of CURE Auto Insurance in Princeton, NJ. Since 1994, he has overseen underwriting, loss control, claims, marketing, and litigation strategy, leading teams of roughly 300–350 employees and serving drivers in NJ, PA, and MI. He advocates for banning non-driving “income proxy” factors such as education and occupation and supported reforms in Michigan and New York. Mr. Poe holds an accounting degree from the University of Colorado Boulder and a JD from Seton Hall University School of Law.
Informational only; not legal advice.
