California Bans Insurers From Charging Drivers Based On Their Gender

The California Department of Insurance has come up with new rules, under which the auto insurers are now prohibited from charging drivers based on their gender.

The new rules will bring insurance prices in line with the Proposition 103 that bans unfair and discriminatory pricing and mandates rates to be based primarily on the person’s driving record and experience, leaving out personal characteristics and especially their gender, as women usually got slapped with premiums over males.

Carmer Balber, executive director of Consumer Watchdog, applauded the decision by saying: “Gender and sex have no more place in what we pay for auto insurance than race or ethnicity do. 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,” added Consumer Watchdog attorney Danny Sternberg.

The Proposition 103 requires auto insurance premiums to be based primarily on factors like driving safety record, miles driven and years of driving experience. It also prohibits discrimination based on sex, race and sexual orientation, applying state civil rights laws.

Tests conducted by the Consumer Federation of America have shown that, in some markets, one insurer would grant a price break for female drivers while another insurer in the same market would charge more those same drivers. The California Department of Insurers discovered that the gender effect on rates varies widely based on location.

Under the new rules, auto insurers must file new class plans by July 1, triggering new rates for drivers in California.

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  • LJ

    What about Asian women?

  • S T

    They will just raise it to whatever is the highest now for everyone.

  • Da Only Skid

    Ahhh, the state with the most different gender identified people. Make sense. Just call everyone a cyborg…or broke, should be a gender in CA. This state is ridiculous, should just keep driving home and pursuing secession.

    • TheAmerican

      CALIFORNIA: The state where you can change your gender but not your exhaust lmao

  • Da Only Skid

    Oh wait, one more thing. Then age should be a non-issue also. So long as I feel like I’m 30 but am actually 70 then who are insurance companies to base my rates on age….ahhh, regardless if it’s in reverse and I thought drive or confused the brake with the gas pedal….swear they change the location of gears, fast and brake pedal….yearly.

  • flyfish

    This is good news for parents of teenagers, teenage boys, and young men in their early 20’s. Of course, this just means that everyone else’s will increase enough to offset, ya know facts.

    • Da Only Skid

      And good news for nursing home residents alike…now grandma and grandpa pay the same….

      • flyfish

        They might as well just do away with the whole “points” issue as well. Clearly this could be discriminatory against “driving challenged” individuals.

        • Da Only Skid

          Lmao. Case for the driving and drinking impaired. “I wasn’t speeding occifer I ran out of beer.” The point system honestly is a joke as well. Makes one wonder if those that write the reports are between the sheets as well.

    • Jay

      I wouldn’t call it good news. All I think they are going to do it make the price higher to be equal to the gender they charged more in the first place.

  • Emoto

    The insurance companies are now furiously doing the math on what the rates need to be in order to maintain profitability.

    I cannot predict how things will go, but I suspect that with “only the driving record” being considered, if you have an at at fault accident, your rates will jump higher than you could ever imagine.

    • Da Only Skid

      They will do just as telecoms do: Set a base rate at the highest level, charge everyone more (even the Cleanies) and rape the people with records. Corporate debt gets dispersed among the plebeians.

  • Da Only Skid

    My guess is they feel if your irresponsible with credit, no matter the situation, then that’s you in a nutshell. Personally, credit scores are a joke through and through. Not like back in the 90’s when you could talk to a loan officer, tell them why it sucks, provide proof and then one is taken care of. I understand losses and such but pretty sure every facet of the insurance industry screws every client out of thousands of dollar annually. And holy shit, god forbid you need it….

  • Dude

    I love it when people just throw out buzzwords they find scary when confronted with change they don’t understand. This has nothing to do with diversity. Lay off the Fox news.

  • Dude

    If you’re over 30 or male (and I’m pretty sure that covers just about everyone here) you have nothing to worry about. Car insurance is at most 30% more expensive on average for a male under 21. It declines rapidly from there. Rates will probably go up the most for young women, but that’s it. And it depends on the company. Some insurers already adjust rate on the basis of driving record alone.

  • TheAmerican

    Well this is nice, since I’m about to get my license very soon. Male teenagers always have higher rates. BUT, this probably just means that the insurance will increase the price for everyone.

    Good job california,
    All you did was make women have rates that are as high as men. No one benefits except for insurance companies.
    And, you recently just made a new law fining $1000 for anyone with an aftermarket exhaust, with no fixit ticket as a warning.
    They don’t care about real problems, the only thing they worry about is not making enough money off everyone else.

  • Blake J

    More Republic of California liberal over-reach.

    What happens when taxes go up on industries/corporations? They don’t make LESS, they increase prices on consumers. What happens when new, BIG GOVERNMENT regulations like this one is passed onto insurance companies? Simple – The people that were paying less based on gender will get increases, now there’s no “discriminatory pricing”…

    I mean no one really expects that the insurance companies are just going to absorb giving lower pricing to 50% of customers, right? Even liberal politicians know it just a political shell game & means increases for others but that’s irrelevant as long as they appear to move the needle to the left. This is part of the reason California is in so much trouble.

    • Benjamin B.

      Blake, I’m a man in his mid-to-late 20s living in California so I am actually relieved.

    • Benjamin B.

      Although to be honest I would prefer government stay out of the insurance business because it usually just increases prices the more it gets involved. Again though, it’ll lower my insurance in the short term. In the long term, it’ll probably lead to insurance companies getting cheaper and more clever with how to raise premiums.

      I’m in my 20s, so this new law will probably lower my premium, but I’m in my late 20s approaching 30. I feel like this law will lead to insurance companies charging younger women and older people because they can’t charge men more.

  • Nick099

    Women pay higher rates than men in Kali???

    Strange, it’s usually the other way around.

    Must be the over consumption of soy.

    • Benjamin B.

      Actually men pay more than women here in California. Honestly I understand because we take more risks driving than women. Women tend to be more cautious driving. That being said, this should lower rates for men while not effecting women right away. Maybe in the future, women will see premiums increased for other reasons?

      • Nick099

        I agree with your conclusion. This will work out better for men….and quite frankly not a bad idea.

        So the writer here is wrong. Women in California do not, for some strange reason in defiance of everywhere else, pay more for car insurance than men.

  • ➡️ProtectOurHeritage⬅️

    Depraved California copies the EU at every step. Insurance won’t go down, it’ll just go up for everyone.

  • Sharper Living

    It makes no sense.

    If you’re statistically more likely to have an accident (young men), why shouldn’t you pay more? You’re in a riskier class.

    People will do anything to avoid having to say “there are inherent differences between how mn and women behave”.

  • eye.surgeon

    Hilarious that the author suggests that women pay more than men in California for car insurance. Anyone who lives here knows that insurance rates are often double for a male teen vs a teen female, and deservedly so. Congratulations California legislators for forcing women to subsidize the higher risk driving of young men. And I’m a guy.

  • EyalN

    so now woen are going to pay more?
    very smart of them

  • Thetruthísntalwayspopular

    California should just secede

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