From the FAQ vault...How does gender affect your car insurance rates? We've all heard the trope - young boys in flashy red cars are going to pay the most. But is this still true?
Not entirely! As of 2019, gender is no longer a factor for determining your auto insurance rate in California. Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania have also joined the ranks of states banning this practice. It has long been a controversial factor, because from a data standpoint, there are disparities of claim costs between genders. But from a societal (and legal) perspective, this is a discrimanatory practice. It also doesn't take into account those identifying as non-binary.
According to insure.com, "In California, the change for gender was more of a targeted change than part of a major overhaul. The California Department of Insurance mandated that auto insurance companies operating in the state must file a revised class plan that “eliminates the use of gender as a rating factor." The California ban comes on the heels of another law that went into effect [in 2020], which allows California residents to choose "non-binary" rather than "male" or "female" on driver licenses." California is now one of 20 states that include a third option on drivers licenses.
Happy Pride Month, y'all, baby steps!
See our source article here.