In California, unmarried drivers, including those who are single, divorced, or widowed, face higher car insurance premiums compared to their married counterparts.
A recent ruling by a California appeals court upheld the right of insurers to charge higher rates for unmarried individuals, citing their statistically higher likelihood of being involved in accidents. This decision, delivered on July 16, is expected to be appealed.
The lawsuit, initiated by 11 unmarried drivers, sought to remove marriage as a factor in determining insurance rates. They argued that this practice violates California’s civil rights laws, which prohibit discrimination based on marital status. However, the court ruled that Proposition 103, a 1988 measure governing insurance regulations, allows the insurance commissioner to approve rating factors that predict loss claims, including marital status.
According to a report by the Los Angeles Times, the Consumer Federation of America found that unmarried drivers pay up to $108 more for a six-month policy than married drivers. This discrepancy has sparked criticism from consumer advocacy groups, such as Consumer Watchdog, which argues that the regulation is outdated and discriminatory.
Insurance Commissioner Ricardo Lara defended the regulation, stating that it reflects actuarial data showing unmarried drivers are more prone to accidents. However, critics, including Consumer Watchdog, argue that the regulation disproportionately affects Black and Latino drivers, as well as LGBTQ+ individuals.
The case, known as Ison v. Commissioner of the California Department of Insurance, highlights the ongoing debate over the fairness of using marital status as a rating factor. The ruling leaves existing regulations unchanged, but the controversy continues as advocates push for reforms that align with modern societal norms.
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