Prohibits use of gap in automobile insurance coverage as rating factor in automobile insurance underwriting under certain circumstances.

This bill (A 3665) prohibits automobile insurers in New Jersey from using gaps in an applicant's previous insurance coverage as a factor to charge higher premiums. It directly affects drivers who have had a lapse in coverage (e.g., when switching insurers or letting a policy expire) by preventing insurers from penalizing them through higher rates based solely on that gap. The key mechanism amends existing law to explicitly ban underwriting rules that assign higher insurance tiers due to a coverage lapse, requiring insurers to apply uniform pricing rules. This change ensures applicants with past coverage gaps cannot be unfairly charged more than others meeting the same risk criteria. The bill is currently pending in the Assembly Financial Institutions and Insurance Committee.