California auto insurance companies are no longer allowed to use sex as a factor in determining premiums.
urbazon / Getty Images
Gender inequality is a widespread problem all over the world and affects people in ways more than most of us realize. For example, I did not know that a person's gender would affect the price of his auto insurance, but the good news is that, as of January 1, 2019, in California, it's no longer the case.
California Insurance Commissioner Dave Jones issued a statement Friday only as part of the Regulation respecting the rating of non-discrimination in automobile insurance, insurers would no longer be allowed to use sex to calculate private auto insurance.
"My priority as an insurance commissioner is to protect all Californian consumers, and these regulations ensure that auto insurance rates are based on factors that are under the control of the driver, rather than on personal characteristics over which drivers have no control, "Jones said.
according to a report by the car insurance search engine Zebra, the price gap between men and women has not been huge – the national average is around 1% – and men generally pay more. This trend is reversed in 2017 and now, in most states, women are paying a higher premium.
"Sex is one of the many factors that people consider unjust in pricing auto insurance premiums because it has nothing to do with driving a person." said Alyssa Connolly, director of Market Insights at The Zebra, in a statement. "California is already one of the few states that have banned the use of factors such as credit, the level of education or the fact that someone owns or leases their home."
So while removing sex as a factor in the pricing of auto insurance is far enough away from something like equal pay for equal workit's always a step in the right direction.