News: 2019 Press Release
For Release: January 3, 2019
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Commissioner issues regulations prohibiting gender discrimination in automobile insurance rates
New rule prohibits gender rating; promotes fairness and social equity
SACRAMENTO, Calif. — California Insurance Commissioner Dave Jones has issued new regulations that prohibit the use of gender in private passenger automobile insurance rating in California. The Gender Non-Discrimination in Automobile Insurance Rating Regulation became effective on January 1, 2019.
“My priority as Insurance Commissioner is to protect all California consumers, and these regulations ensure that auto insurance rates are based on factors within a driver’s control, rather than personal characteristics over which drivers have no control,” said Insurance Commissioner Dave Jones.
This is not the first regulatory action Commissioner Jones has taken to prevent gender-based discrimination in California’s insurance industry. In 2012, the Commissioner promulgated regulations that prohibit and prevent the denial of coverage or denial of claims for medical services based upon an insured or prospective insured’s actual or perceived gender identity. Prior to his election as Insurance Commissioner, then Assemblymember Jones authored legislation (Assembly Bill 119, in 2009) to prohibit gender-based discrimination in the pricing of health insurance. Thanks to that law, California eliminated gender-based pricing in health insurance before that became the national standard under the Affordable Care Act.
The Commissioner’s Gender Non-Discrimination in Automobile Insurance Rating Regulation mandates that all automobile insurance companies operating in California file a revised class plan that eliminates the use of gender as a rating factor.
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Media Notes:
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
FAQs
The Commissioner's Gender Non-Discrimination in Automobile Insurance Rating Regulation mandates that all automobile insurance companies operating in California file a revised class plan that eliminates the use of gender as a rating factor.
Can car insurance companies discriminate based on gender? ›
Some states don't permit gender to impact insurance rates
There are a few states that explicitly forbid insurance companies from considering gender when it comes to insurance rates. Those states are: California. Hawaii.
Does gender affect car insurance rates? ›
These states have banned the use of gender to set car insurance premiums: California. Hawaii. Massachusetts.
Which gender pays the most for car insurance? ›
Why do men pay more for auto insurance? Men pay more for auto insurance on average because they're statistically more likely to get into accidents and to have major injuries. However, male drivers only pay about $51 more per year than their female counterparts on average.
What is the gender rule in insurance? ›
GENDER RULE Definition & Legal Meaning
An insurance rule. Determines which parent's policy covers offspring. Typically, a father's policy is primary, providing dependent children coverage before considering any other potential coverage.
Can you change your gender on car insurance? ›
In most states, gender is used as a car insurance rating factor, which means changing your gender could impact your premium. The only states that prohibit insurance companies from using gender as a rating factor are California, Hawaii, Massachusetts, Montana, Michigan, North Carolina and Pennsylvania.
What is insurance based discrimination? ›
Insurance-based discrimination is defined as the unfair treatment that patients receive from health care providers because of the type of insurance they have or because they do not have insurance.
What could influence your auto insurance premiums? ›
Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose.
At what age is auto insurance the cheapest? ›
Car insurance is the cheapest for drivers between the ages of 35 and 55. Car insurance is very expensive for teens because they have a high risk of accidents, and then it decreases sharply as drivers age into their 20s and develop more reliable driving habits.
What age group pays the most for car insurance? ›
Teen and senior drivers typically pay the highest car insurance prices, while drivers in their 30s and 40s often pay the lowest rates.
Gender-based pricing is banned when setting car insurance rates in seven states: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.
Do single or married people pay more for car insurance? ›
Does being married get me better car insurance rates? Yes, married couples typically pay lower premiums than single people. In general, insurance companies view married people as financially stable and safer drivers.
Why does insurance go down when you get married? ›
How does your relationship status affect auto insurance rates? Your personal relationship status does have an impact on what you pay for car insurance. Because married drivers are seen as more financially stable and safer drivers, they typically pay less for car insurance.
How does gender affect auto insurance rates? ›
Top expert tips. When discussing tackling gender disparities in auto insurance, it's worth reiterating that six states — California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania — prohibit insurance companies from using a person's gender as a factor in determining their car insurance rate.
Why does insurance ask for gender? ›
Insurers can't set premiums based on an applicant's race or religion, for example. 1 But insurance companies traditionally have tied gender to an applicant's risk, so it's often been a factor in setting premiums. However, when setting premiums, insurers don't only consider gender as a factor.
Can I say I'm female for insurance? ›
The only states that outright ban the use of gender when determining car insurance premiums are: California. Florida. Hawaii.
Is it legal to discriminate based on gender? ›
Under Title VII of the Civil Rights Act of 1964, employees, job applicants, and union members are protected from sex discrimination at the workplace and at the union hall.
Can insurance companies currently discriminate based on genetics? ›
GINA Title I protections
Title I of GINA prohibits group and individual health insurers from using a person's genetic information to determine eligibility or premiums.
Can private businesses discriminate based on gender? ›
A business establishment that would otherwise be completely open to the public cannot exclude people because of their sex.
Does gender matter in life insurance? ›
Women typically live longer than men, so they often pay less than men for life insurance. Health or lifestyle risks could override any difference in premiums you'd see based on your gender. Gender-nonconforming applicants won't get higher rates based on gender identity, but must apply under one gender.
