A new study says at least three auto insurance companies in Michigan have been illegally using sex and marital status to set prices.
In some cases the study, conducted by the Coalition Protecting Auto No-Fault, found women were charged 33 percent more than men despite having identical driving records, cars, and zip codes.
Doug Heller conducted CPAN’s research. He said Michigan has a law on the books that should make practices like this illegal.
“One of the truly bizarre findings came from Progressive and Esurance both and it was that while rates went up for a 35 year old woman who got divorced compared to if she were married, a 35 year old male driver saw his premium decrease when he got divorced.”
Heller said Liberty Mutual, Esurance, and Progressive all charged widowed and single women up to ten percent more than married women.
“A lot of single women who are trying to maintain family, get kids to school, and get to a job. Those are the people in Michigan, those are the women, who are hit particularly hard when it comes to auto insurance.”
Heller said he hopes the state takes some kind of action against these insurance companies.
“Michigan law prohibits insurance companies from exactly this kind of price discrimination. As such it appears that three of the companies we tested and possibly several others operating in the state are in violation of Michigan law and probably should pay significant refunds to million of drivers as well as face enforcement action from the Department of Insurance and Financial Services.”
Heller said much of the discrimination against female drivers flies in the face of data showing the most accident prone drivers tend to be young men.
James Lynch is with the Insurance Information Institute, which represents insurance companies. He says in states where gender is used to calculate premiums women often pay less.
“So if I see a study that suggests something other than what I have seen many, many, many times I am likely to think that the problem is not with the insurance companies but that it lies elsewhere.”
Heller said the research looked at many insurance companies across the state and where the data wasn’t clear, as with State Farm, that data wasn’t published.
Representatives for Progressive, Esurance, and Liberty Mutual did not respond to our request for comment.