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6/4/2026
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Senate approves Famiglietti bill to allow ZIP codes in insurance premiums only when segmented by municipalities
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STATE HOUSE — The Senate today passed legislation introduced by Sen. Stefano Famiglietti that would allow insurance companies to continue the practice of using ZIP codes to calculate car insurance premiums only when taking municipal segments of a ZIP code into consideration.
Under the terms of the bill (2026-S 2431A), if the actuarial data within the city or town segment of a ZIP code support a lower premium than the data for the ZIP code as a whole, the premium from the for the city or town segment would be used.
“This bill would allow for a fairer and more accurate calculation of rates,” said Senator Famiglietti (D-Dist. 4, North Providence, Providence). “It also addresses some of the injustices that tend to go along with rating premiums based on ZIP codes, which has been shown to be biased and discriminatory. When insurance companies have to take municipal areas within a ZIP code into consideration, it forces them to take a more equitable approach to their calculations.”
The legislation would apply to all policies issued or renewed on or after July 1, 2027.
ACLU Rhode Island testified in favor of the legislation, telling the Senate Commerce Committee, “Not only would this bill ensure that individuals are not being charged more for their insurance based on external biases, but making car insurance more financially accessible to all individuals in Rhode Island can only lead to safer roads and more economic mobility for all communities.”
The measure now moves to the House of Representatives for consideration.
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903
(401)222-1922
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