A California regulator has reversed the state’s position on a rule that allows insurers to charge unmarried drivers more for auto insurance, potentially providing some relief from rising vehicle ownership costs.
The details: Insurance Commissioner Ricardo Lara announced Wednesday that he is barring auto insurers from considering marital status when setting premiums, reversing a policy the California Department of Insurance had previously defended, according to the Los Angeles Times.
The regulatory change seeks to bar insurers from charging single, divorced, and widowed drivers more for auto insurance than married drivers in California.
Under the proposed change, the department will no longer allow marital status to be used in any rate plan filed after Oct. 25, and insurers must file new plans eliminating marital status as a rating factor by July 1, 2027.
The change still must go through a review process to ensure it complies with state law before taking effect.
What they’re saying: “For 30 years, insurers have been allowed to use marital status when setting rates,” Lara said in his announcement, per the Los Angeles Times. “Today, we are taking action to end that outdated practice and reinforce a simple principle: insurance rates should be grounded in actual driving risk, not personal circumstances that have nothing to do with how someone behaves behind the wheel.”
Why it matters: Lower insurance premiums for some unmarried drivers could help reduce one component of vehicle ownership costs at a time when affordability remains a major challenge.
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Also worth noting: The insurance department’s change in position was prompted by a 2022 lawsuit brought by 11 unmarried drivers seeking to overturn the policy regarding marital status, stemming from regulations implemented in 1996.
In arguing its position, the lawsuit noted that sex, age, race, and other personal characteristics are barred under state law from consideration.
The Consumer Federation of America found that single, divorced, and widowed drivers received quotes in April 2025 that were up to $108 higher for six months of premiums from 4 out of 5 California carriers.
The suit also argued that Black and Latino drivers are disproportionately affected by the marital status regulation because they marry at lower rates.
It also alleged the policy impacted LGBTQ+ individuals, though same-sex marriage in California has been legal since 2013.
Bottom line: California’s proposed change could ease insurance costs for some unmarried drivers, helping to improve purchasing power for affected customers as insurance remains a significant part of the cost of keeping a vehicle on the road.
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