Letter to the editor: Banning personalized pricing isn't fariness
- New York's 'One Fair Price Act' threatens to dismantle the underwriting models that reward responsible behavior.
- Banning personalized pricing forces a one-size-fits-all model that penalizes safe drivers to subsidize high-risk individuals.
- Legislative carve-outs for insurance and credit are thin veils that won't hold up once the bureaucrats get hungry for more control.
- Economic reality check: Credit caps and pricing bans historically result in less access to credit and higher costs for everyone.
Brief Summary
Statehouses are buzzing with 'fairness' bills designed to outlaw personalized pricing, but the reality behind these feel-good laws is a direct hit to your wallet. By attempting to eliminate price discrimination, regulators are inadvertently dismantling the incentive structures for creditworthiness and safe driving. If these laws expand beyond current narrow carve-outs, the insurance and lending industries will be forced to abandon risk-based pricing, effectively taxing the responsible to bail out the reckless.
Why This Matters
If you pride yourself on keeping a spotless driving record and a high credit score, this is a direct threat to your bottom line. These policies are designed to socialize the cost of risk, meaning you will end up paying more for insurance and loans to offset the costs of those who don't play by the rules. When the government dictates pricing, the 'fair' price usually ends up being the highest price for the most responsible people. Expect your premiums to climb as the market loses the ability to distinguish between a safe bet and a liability.