American Property Casualty Insurance Association: Delaware Senate Passes Bill That Could Raise Auto Insurance Costs for Women Drivers

DOVER, Delaware, April 7 (TNStalk) -- The American Property Casualty Insurance Association issued the following agency statement on April 6, 2022:

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The American Property Casualty Insurance Association (APCIA) today issued the following statement attributed to its vice president of state government relations and counsel Nancy Egan regarding the Delaware Senate's passage of Senate Bill 231 to ban the use of gender in auto insurance pricing.

"It is disappointing the Delaware Senate passed a bill based on a misleading and inaccurate report rather than facts and actuarially sound data. Senate Bill 231 passed with a razor thin majority - by just one vote. If SB 231 becomes law and insurers are no longer able to use gender in determining auto insurance pricing, many women, particularly young women, could see their auto insurance costs rise. Many insurers use gender in determining auto insurance pricing because statistics show that, in general, women have fewer accidents and thus pay lower rates.

"Insurers use a wide range of factors such as driving history, gender, multi-car discounts, and good student discounts in auto insurance underwriting to provide the most accurate and fair pricing for each customer. Consumers benefit from this personalized approach, which helps keep costs lower and maintains Delaware's competitive auto insurance market, resulting in more choices as consumers shop around for coverage.

"If Delaware lawmakers in the House want to ensure auto insurance costs remain fair and accurate for women drivers, they should vote no on SB 231 until they are able to gather more information and actuarially sound data to fully understand the bill's impact on women."