A new California law prohibits auto insurance companies from considering gender when setting insurance rates. (drive.ky.gov)
California has banned auto insurance companies from considering gender when setting insurance rates for private passenger cars.
The Gender Non-Discrimination in Automobile Insurance Rating Regulation went into effect on Jan. 1, 2019.
California Insurance Commissioner Dave Jones, who authored the bill, said the new 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."
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The new bill mandates that auto insurances companies in California file a "revised class plan that eliminates the use of gender as a rating factor."
Jones previously authored a bill that banned insurance companies from denying medical services based on gender.
California is not the first state to ban gender from auto insurance pricing, according to the Consumer Federation of America (CFA), but is among the only states in the U.S. to ban insurance companies from considering an applicants’ education, job, or credit score, CBS News reported.
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