Cali. mulls extending group discounts to lower-income drivers

The proposed regulations follow a study finding insurance group discounts skew toward wealthy drivers and those with higher levels of education.

“With this pandemic continuing to dramatically widen the country’s income and equality gap, I am proposing these new rules that make car insurance discounts more equitable and available to the communities who can least afford to pay more for insurance,” California Insurance Commissioner Ricardo Lara, said in a release. (Credit: BLACKWHITEPAILYN/Shutterstock.com)

In an effort to extend group discounts for auto insurance to lower-income drivers, blue-collar workers and motorists of color, California has issued revised draft regulations following a two-year study that found group discounts disproportionately benefit wealthier and more highly educated Californians when it comes to auto rates, according to the California Department of Insurance.

The move would be the first major reform to group discounts since California voters approved Proposition 103 in 1988, the department reported. The revisions include:

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Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].

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