California Auto Insurance Rates may legally be set higher for unmarried drivers than for married drivers, a state appeals court has ruled.
The lawsuit challenged a pricing practice that California insurers have maintained for nearly 30 years with the approval of the state insurance commissioner. Under the policy, unmarried drivers may be charged higher premiums based on their marital status.
Unmarried policyholders, including lead plaintiff Adamma Ison, filed the lawsuit in 2022. They argued that the practice violated California’s civil rights law, which prohibits discrimination based on marital status.
According to court documents submitted by the plaintiffs, unmarried drivers paid approximately $56 to $100 more in insurance premiums than married drivers.
California Auto Insurance Rates Approved by Court
California’s 1st District Court of Appeal recently ruled 2-1 that the insurance commissioner acted lawfully in allowing insurers to charge different rates to unmarried drivers.
The majority found that Proposition 103 gives the insurance commissioner the authority to approve insurance rates. The court also cited evidence of an association between marital status and the risk of accidents and insurance claims.
Based on those factors, the court concluded that insurers may use marital status when determining premiums.
The ruling effectively allows insurance companies to continue charging unmarried motorists more than married motorists when the rate differences have been approved by the state insurance commissioner.
Dissent Cites California Civil Rights Law
Presiding Justice Alison Tucher dissented from the majority opinion.
Tucher emphasized that the amendment to California’s civil rights law, which prohibited discrimination based on marital status, must be followed by all state agencies. She argued that the insurance commissioner should therefore not permit discrimination based on marital status.
Plaintiffs May Appeal to California Supreme Court
The plaintiffs may ask the California Supreme Court to review the decision.
Harvey Rosenfield, who helped draft Proposition 103, criticized the ruling in an interview with the San Francisco Chronicle.
Rosenfield said voters approved the initiative to end excessive insurance rates and discrimination in the marketplace—not to give the insurance commissioner the authority to permit discriminatory pricing.
Unless the decision is overturned, California Auto Insurance Rates may continue to vary based on whether a driver is married or unmarried.
