<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "LOS ANGELES, January 4, 2019 / PRNewswire / – California auto insurers can no longer charge more sex-based drivers under new rules recently issued by the California Department of Insurance. "Data-reactid =" 11 "> LOS ANGELES, Jan. 4, 2019 / PRNewswire / – California auto insurers can no longer charge drivers for higher fees because of their gender, according to the new rules issued by the California Department of Insurance .

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The rules align auto insurance prices on the provisions of the Voter Approved Proposal 103, which prohibit unfair and discriminatory prices and require that rates be based primarily on the driving record and the experience of the driver. the person, not his personal characteristics.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Gender and sex are out of place in which we pay for auto insurance that race or ethnicity do. These new rules will finally put an end to sex discrimination in the pricing of car insurance California, "I said Carmen Balber, executive director of Consumer Watchdog. "data-reactid =" 24 ">" Sex and sex do not have more room in what we pay for auto insurance than do race or ethnicity. These new rules will finally put an end to sex discrimination in California auto insurance pricing, "said Carmen Balber, executive director of Consumer Watchdog.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" It is clear that the use of gender – innate, personal characteristic, independent of the driver's will – must be eliminated so that all California drivers are treated fairly under the protections of Proposition 103 ", said a Consumer Watchdog lawyer Danny Sternberg"data-reactid =" 25 ">" It is clear that the use of sex – an innate and personal characteristic outside the control of the driver – must be eliminated to ensure that all Californian drivers are treated fairly under the protections of Proposition 103, "said Consumer Watchdog lawyer Danny Sternberg.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Read Consumer Watchdog's comments in favor of the new regulation right here"data-reactid =" 26 "> Read the Consumer Watchdog's comments for the new regulation right here.

Voter-approved proposal 103 requires that automobile insurance premiums be based primarily on factors that are under the control of the motorist: safe driving record, mileage driven, and driving experience. It has also enforced national civil rights to insurance, including prohibiting discrimination based on sex, race and sexual orientation.

Sex had already been approved as an optional assessment factor. However, more and more evidence is showing that the use of gender by insurers has led to unfair and arbitrary prices.

For example, contrary to popular belief, insurance companies do not always pay more for male drivers. Tests conducted by the Consumer Federation of America have shown that, in some markets, an insurer would grant a price reduction to female drivers, while another insurer in the same market would charge additional fees to those same drivers. GEICO almost always considers women to be at higher risk, while State Farm almost never does. The California Department of Insurance has found that the effect of women on tax rates varies considerably by region.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "See the report of the Consumer Federation: https://consumerfed.org/press_release/large-auto-insurers-charge-40-60-year-women-higher-rates-men-often-100-per-year/"data-reactid =" 30 "> See the report of the federation of consumers: https://consumerfed.org/press_release/large-auto-insurers-charge-40-60-year-women-higher-rates-men-often-100-per-year/

Consumer Watchdog noted that the risk factors often used to justify the gender classification are already covered by the mandatory classification factors and other approved classification factors, in line with proposal 103. For example, insurers may argue that the price gap between men and women is influenced by higher costs. cars generally chosen by men, the frequency of accidents between women and men, gender-specific statistics on risky driving behavior, or the average number of kilometers traveled by women compared to men. However, these risks can be captured by mandatory factors such as the applicant's driving record, annual kilometers traveled, years of driving, or optional evaluation factors such as vehicle type.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Under the regulations, insurance companies must classify a new class plans by 1st of July st of this year. The rate changes for consumers will follow. "Data-reactid =" 32 "> Under the regulations, insurance companies must file new class plans by July 1 of this year, and rate changes for consumers will follow.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "View original content to download multimedia:http://www.prnewswire.com/news-releases/consumer-watchdog-applauds-new-california-rules-ending-gender-based-discrimination-in-auto-insurance-pricing-300773071.html"data-reactid =" 45 "> View original content to download multimedia:http://www.prnewswire.com/news-releases/consumer-watchdog-applauds-new-california-rules-ending-gender-based-discrimination-in-auto-insurance-pricing-300773071.html

SOURCE Consumer Watchdog