By Ryan Smith, INSURANCE BUSINESS AMERICA
January 7, 2019
A consumer advocacy group has applauded California’s new rule banning gender discrimination in auto insurance pricing.
According to new rules issued by the California Department of Insurance, California insurers may no longer charge drivers more based on their gender. The rule brings insurance pricing into line with the state’s voter-approved Proposition 103, which requires insurance rates to be based primarily on a person’s driving record rather than personal characteristics.
Advocacy group Consumer Watchdog said the new rule was a win for insureds.
“Gender and sex have no more place in what we pay for auto insurance than race or ethnicity do,” said Carmen Balber, executive director of Consumer Watchdog. “These new rules will finally end gender-based discrimination in auto insurance pricing in California.”
“It is clear that the use of gender – an innate, personal characteristic outside the control of the driver – must be eliminated to ensure that all California drivers are treated fairly under Proposition 103’s protections,” said Consumer Watchdog attorney Danny Sternberg.
The proposition requires that auto insurance premiums be based primarily on factors within a driver’s control, such as driving safety record, miles driven, and years of experience. The proposition also applies California civil rights laws to insurance, prohibiting discrimination based on sex, race, and sexual orientation.