California moves to ban auto insurance surcharges for single drivers

LOS ANGELES - California could soon pass regulations to prohibit auto insurance companies from using a driver's marital status when determining car insurance rates.

What we know:

Under Proposition 103, auto insurance rates in California are primarily determined by a driver’s safety record, annual miles driven, and years of driving experience. 

While marital status has been permitted as an optional factor since 1996, Consumer Watchdog reports show it allowed insurers to charge unmarried drivers—including single, divorced, and widowed individuals—up to $100 more than married policyholders for identical coverage. 

Commissioner Ricardo Lara’s proposed change aims to end this practice, reflecting modern societal norms where fewer adults are married. 

If finalized, the regulation will require insurance companies to submit revised rating plans to the Department of Insurance for review to ensure compliance with state law.

What we don't know:

It's unclear how individual insurance carriers will adjust their overall base rate structures if marital status is completely removed as a rating option, or if industry groups will launch formal legal challenges to block the regulatory changes.

The backstory:

In 1988, California voters passed Proposition 103, establishing mandatory and optional rating factors for auto insurance. 

The Department of Insurance formally adopted marital status as an optional rating factor in 1996. 

Decades later, on July 16, 2026, the First District Court of Appeal issued its ruling in "Ison v. Lara," where a divided panel upheld the commissioner’s underlying authority over optional rating factors under Proposition 103. Presiding Justice Alison M. Tucher dissented, stating that using marital status as a factor conflicts with state civil rights protections. 

Leveraging the legal framework confirmed by the "Ison v. Lara" decision, Commissioner Lara formally introduced the proposed regulations to ban the factor going forward.

What they're saying:

"The price of your auto insurance should be based on how you drive, not whether you’re married," Lara said in a statement. "For 30 years, insurers have been allowed to use marital status when setting rates. Today, we are taking action to end that outdated practice and reinforce a simple principle: insurance rates should be grounded in actual driving risk, not personal circumstances that have nothing to do with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". 

Assemblymember Lisa Calderon, Chair of the Assembly Insurance Committee, applauded the move, stating, "There is no circumstance where it is acceptable for an unmarried driver to pay more for auto insurance for the sole reason of being unmarried."

State Senator Steve Padilla, Chair of the Senate Insurance Committee, noted, "Marital status is a data shortcut, not a direct, demonstrable fact about how someone drives. By finally eliminating marital status as a rating factor, Commissioner Lara is correcting a 30-year failure and putting fairness back into what Californians pay". Supporting the initiative, Equality California Executive Director Tony Hoang stated, "Californians shouldn’t pay more simply because of the honest and true lives they live or their personal circumstances."

What's next:

The proposal will move through the state’s formal public notice and review process. 

If approved, insurance companies that elect to use marital status in their rating plans will be required to submit updated class plans and rates for review by the Department of Insurance.