JSMedia – California has become the seventh state to ban using gender to calculate auto insurance premiums. The move comes as insurers push to implement formulas that are based on risk factors, not on the driver’s gender. The move is ironic, but is also a sign of progress for women’s equality. While women tend to pay higher premiums for car insurance, men generally pay lower premiums than do women.
Some states have already banned using gender to determine rates. Massachusetts, Maine, and North Carolina have enacted laws prohibiting insurers from using this method. Pennsylvania also has a law allowing insurers to use this information. However, a recent report in the New York Times found that 80% of auto insurance companies used gender to determine rates. For these drivers, the new law is a good step forward.
The auto insurance industry argues against this trend, but the change is an important step. Insurers have been forced to make adjustments because gender has a greater correlation with accidents, speeding, and DUI convictions. Insurers may be forced to change their policies if state laws mandate this. As a result, women may pay higher premiums than men for their car insurance. It is a good start for the industry and for consumers.
California Bans Gender From Auto Insurance Claims
The ban on gender-based insurance was adopted in California last year. Insurers charge men and women differently for car insurance, and the rate is higher for men than it is for women. But the changes do not mean that women can no longer get lower rates than men. Nevertheless, women will pay less for car insurance in the same age bracket as men. While the law is an important step for consumers, the fight will be tough.
California is the sixth state to ban gender from auto insurance. This measure is a step towards gender equality. Insurers can still charge higher rates if they have lower risk. Nonetheless, they should not be using gender as a factor to set rates. Moreover, it’s unfair to women who are already underinsured. A woman’s car insurance policy can be more expensive than her male counterpart.
After the 2012 non-discrimination law, the auto insurance industry has taken steps to make this discrimination illegal. Insurers no longer consider a person’s gender when determining a car insurance premium. They also consider other factors, such as education level and occupation. Those with a higher education can save more money on their car insurance. This is a significant step in reducing the disparity between men and women in terms of car insurance.