Provides that private passenger automobile insurance rating territories shall not place exposure in territory based on ZIP code under certain circumstances.

This New Jersey bill (S 270) changes how auto insurance companies determine rates by prohibiting the use of ZIP codes that cross city or town boundaries to place drivers in insurance rating territories. Instead, it requires insurers to assign drivers to territories based on their municipal boundary (where their car is garaged) when a ZIP code spans multiple municipalities. This directly affects drivers in areas where ZIP codes cover multiple towns, ensuring rates are based on actual location rather than arbitrary postal boundaries. The policy aims to prevent unfair rate disparities caused by ZIP code overlaps.