Why is it Legal to discriminate pricing based upon gender?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Sep 29, 2015

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Insurance Question from Bostonia, CA

Asked on 09/29/2015

Why is it Legal to discriminate pricing based upon gender? Hello, I was wondering why it is legal in California for auto insurance pricing based upon gender? As far as health insurance goes, it is illegal to discriminate based upon pre-existing conditions, and other factors other than smoking. So why is it legal in the auto industry to charge a male more money than a female, if each have the same driving records?Thank you.

Answer given on September 29, 2015

Insurance companies in California file their rating structure with the Dept of Insurance and the Insurance Commissioner. If these have been approved, then the insurance company can charge the rates they are charging.Many insurance companies charge extra for young male drivers based on the fact that they generally drive more than females and the experience of losses indicate they have more accidents than females as well as more tickets.As your driving experience grows, the rates will go down if you do not have any tickets or accidents. After three years of driving experience, you are eligible for a good driver discount, and after you reach experience of somewhere between five & seven years, your rates will be the same as other drivers, again presuming you have a good driving record. If you are in school and good student discount can help reduce your rates too.


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