The officials at the California Department of Insurance proposed an amendment in state law in order to curb discriminatory auto insurance pricing. In a recent investigation, California officials got to discover that insurers are involved in discriminatory auto insurance pricing practices. They tend to sell auto insurance to people of colour and low-income drivers in the Golden State at comparatively higher prices than regular customers. They are found to offer discounts on insurance premiums oftentimes to well-off, white drivers.
“Just because you have a good job or a good education doesn’t mean you should be paying less for your auto insurance.” -Jamie Court
President of Consumer Watchdog
According to Jamie Court, auto-insurance pricing is determined in California by evaluating factors like customer’s driving safety, years of experience and number of miles (annually driven). Apart from these, all other aspects must have a lesser weightage than these three.
Due to the unfair auto insurance pricing practices, California officials proposed an amendment in state law. The existing regulation would be amended so that the corporations selling auto insurance treat customers in a fair manner irrespective of race, gender, religion, colour, ancestral background, medical history, marital status, sexual preferences, mother tongue, profession, immigration status, educational qualification and income status.