California proposes ban on using marital status for auto insurance rates

California Insurance Commissioner Ricardo Lara has proposed a new regulation that would prohibit auto insurance companies from using a driver's marital status to determine premium rates. This move aims to end a practice that has been permitted since 1996, where single, divorced, or widowed drivers often pay significantly higher premiums than married individuals.

Reports indicate that the disparity can be substantial. Data from the Consumer Federation of America showed that for a 50-year-old driver with a good record, some companies charged single drivers 32% more than married drivers for a six-month period, with differences reaching as much as $108.

Lara stated that insurance rates should be based on actual driving risks rather than personal circumstances unrelated to behavior behind the wheel. The proposal follows a July ruling in the 'Ison v. Lara' case, which affirmed the Commissioner's authority to regulate optional rating factors. The regulation will now undergo a formal public notice and review process.