Lawmakers in Dover are considering legislation (SB 231) that could make auto insurance more expensive for women drivers across the state.
If passed, SB 231 would ban the use of gender in auto insurance pricing, potentially raising rates for women drivers at a time when many households are struggling to make ends meet during this time of rising inflation and uncertainty.
Using a wide range of proven rating factors such as gender, multi-car discounts and good student discounts in auto insurance underwriting allows insurers to underwrite individuals and provide accurate and fair rates overall while preserving consumer choice.
If passed, SB 231 would prohibit insurers from using gender as a rating factor and would make auto insurance pricing much less accurate putting pressure on rates. Lawmakers in Dover cannot make an informed decision on this issue if they rely only on the report by Consumer Federation of America. It is entitled Gender Disparities in Auto Insurance Pricing in the State of Delaware and only based its conclusions on one age group of 35 instead of all ages for males and females. The report does not have sufficient data to determine the effect of eliminating gender use in pricing at all ages. More information must be considered in order to fully understand the impact on women especially for young females under the age of 25 before moving forward.
Delaware lawmakers should oppose SB 231.