California bans insurance companies from using gender to set rates

So, let’s say you live in California and have two teenage twins, one is a boy and the other one’s a girl. They just turned 16 and are eager to get their license and finally get behind the wheel. However, you’re horrified to find out that your son is going to be charged $20 more per month than his twin sister for the same coverage.

That’s because for decades insurers have been discriminating against gender and charging higher rates for teen males. That blatant discrimination is stopping thanks to new laws that have already taken effect in California. State legislators passed a bill which prohibits any insurance company in the state to charge more for a policy based on one’s gender.

This is good news for those young motorists on a tight budget. It’s projected that this new law will save male drivers between 16 and 19 years of age more than 5% annually. This can add up to saving hundreds each year. It will equalize premium costs more evenly between teen boys and girls.