As everyone (apparently except the California Insurance Commission members) knows, insurance is the transfer of risk and fiscal responsibility for its realization from one party to another for an agreed fee that’s commensurate with the risk and expected cost being transferred. The California Insurance Commission has eliminated that for California drivers, mandating that driving coverage be provided independently of the risk transferred.
California has banned auto insurance companies from considering gender when setting insurance rates for private passenger cars.
The Gender Non-Discrimination in Automobile Insurance Rating Regulation went into effect on Jan 1, 2019.
Never mind that men and women drive differently and represent different risks while driving. This move makes differing risk irrelevant, and so it cancels the risk aspect of coverage for events occurring while driving.
Commissioner Dave Jones claims that the move will
ensure that auto insurance rates are based on factors within a driver’s control, rather than personal characteristics over which drivers have no control.
He’s being disingenuous or ignorant. Again: what was being insured was actual driving performance, not gender. That that performance is measurably different between women and men has been actuarially understood for decades.
One outcome of the Commission’s move will be to drive up coverage rates for women—who had enjoyed lower rates because they are lower risks, safer drivers.