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Calif. Attempts to Stop Discriminatory Auto Insurance Pricing

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Dec. 30, 2019—California officials found in a recent investigation that insurers often sell higher-priced auto-insurance policies to people of color, low-income drivers and others, reported CNBC.

As a result, California officials proposed a new rule on Tuesday. California’s proposed regulation would amend state law so firms selling auto insurance to so-called “affinity groups” treat customers fairly regardless of sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, primary language, immigration status, occupation, educational attainment or income level.

Insurers are supposed to determine auto-insurance rates in California based primarily on a customer’s driving safety record, miles driven annually and years of experience, said Jamie Court, president of Consumer Watchdog, a consumer advocacy group.

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