California Insurance Commissioner Proposes End to Marital Status Use in Auto Rates

California Insurance Commissioner Ricardo Lara is proposing changing regulations to prohibit insurance companies from using a driver’s marital status as an optional factor when setting private passenger automobile insurance rates. Related: California Governor Signs Act to Create Smoke Damage Presumption “The price of your auto insurance should be based on how you drive, not whether you’re married,” a statement from Lara reads. “For 30 years, insurers have been allowed to use marital status when setting rates. Today, we are taking action to end that outdated practice and reinforce a simple principle: insurance rates should be grounded in actual driving risk, not personal circumstances that have nothing to do with how someone behaves behind the wheel.” Related: Farmers Files to Expand Coverage, Raise Rates for California Small Businesses Under Proposition 103, auto insurance rates are determined by a driver’s safety record, annual miles driven and years of driving experience. Prop. 103 also gives the commissioner authority to approve additional optional rating factors related to the risk of loss. Since 1996, marital status has been one of those rating factors. Insurers were able to elect to use it in rating plans if they complied with Prop. 103 and got approval from the California Department of Insurance. Lara’s proposed regulation will end that. Topics California Auto Was this article valuable? Thank you! Please tell us what we can do to improve this article. Thank you! % of people found this article valuable. Please tell us what you liked about it. Here are more articles you may enjoy.