States Ban Gender as Auto Factor
California has become the seventh state to ban auto insurers from using gender as a factor to calculate the rates customers pay. Regulators across the country continue to push insurers to adopt formulas that have more to do with how a car is driven than by whom, which could lower rates for young male drivers, who are statistically riskier to insure, and increase rates for young female drivers, who are statistically less risky.
The difference could be as much as $500 if insurers split the difference between what male teenagers and their female counterparts pay now, says Penny Gusner, a consumer analyst. A new report on auto insurance trends by the Zebra.com, finds that insurers are modifying their risk analysis to include data from technologies that monitor driver behavior on the road and increasing penalties for drivers who engage in distracted driving or other dangerous behaviors.