COLUMBUS, Ohio -- An Ohio Senator is proposing new legislation, saying residents in Columbus’ safest neighborhoods are overpaying because insurance companies are required to set rates based on the city you live in, not your neighborhood.
NBC 4’s Patrick Preston’s DIGGING DEEPER on what the law would mean for you.
In a northeast Columbus neighborhood frequently targeted by criminals, first-year resident Jason Woodard doesn't want a higher auto insurance bill than someone living across town.
"I don't have a very bad driving record. So regardless of where I stay, do not increase it just because you want to,” Woodward says.
Ohio law currently forbids insurance companies from using your zip code to price your car coverage. Companies can, however, set rates based on your city.
Under a newly proposed law, if you live in an upscale neighborhood that does not see a lot of crime, your auto insurance rates could go down.
On the other hand, in the neighborhoods with a history of higher crime, there is a concern that the families who may have the least will end up paying the most.
State Senator David Goodman says the change would decrease paperwork for insurance companies.
He tells NBC 4 insurance companies have assured him the change would cut costs for residents in safer neighborhoods without punishing residents in higher-crime neighborhoods that he says already pay the highest premiums.
“That’s why I’m trying to change this. I think it should be based upon risk and where you live. I mean people choose to live in different parts of the city, and there are going to be consequences to that,” Goodman says.
Woodward says as long as he can be guaranteed that his rates won’t go up, he could support the plan. But, he says for the sake of his family and his neighbors, he wants proof that costs will not rise.
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