California: proposed insurance rating factor change, new laws related to EVs
Following a recent appeal court ruling, California Insurance Commissioner Ricardo Lara has proposed regulations to prohibit insurance companies from using a driver’s marital status as an optional factor when setting private passenger automobile insurance rates.
The proposed regulations follow the California First District Court of Appeal’s July 16, 2026 decision in Ison v. Lara, which upheld the commissioner’s authority under Proposition 103 over optional automobile insurance rating factors.
Justice P.J. Tucher’s published opinion notes that the commissioner’s auto insurance rate powers don’t include “the right to pick and choose among the state’s civil rights laws, requiring insurers to comply with only some of them.”
“I would hold that the marital status regulation is invalid on its face, and appellants are entitled to a writ mandating that the Commissioner replace it,” Tucher wrote.
Under Proposition 103, automobile insurance rates are primarily determined by three mandatory factors: a driver’s safety record, annual miles driven, and years of driving experience.
The California Department of Insurance (CDI) notes that Proposition 103 also gives the insurance commissioner authority to approve additional optional rating factors with a substantial relationship to the risk of loss.
“Since 1996, marital status has been one of those optional rating factors,” the release states. “Insurance companies had been able to elect to use it in their rating plans if they demonstrated compliance with Prop. 103 and received approval from the California Department of Insurance. However, with today’s proposed regulation, this particular rating practice will end.”
The CDI release states that insurers currently using marital status will be required to bring their rating plans into compliance with the final regulations through the department’s Proposition 103 review process. Any resulting changes to an insurer’s rates or class plan would remain subject to CDI review.
“The price of your auto insurance should be based on how you drive, not whether you’re married,” said Commissioner Lara in a press release. “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 Today, we are taking action to end that outdated practice and reinforce a simple principle: insurance rates should be grounded in actual driving risk, not personal circumstances that have nothing to do with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.”
The release includes endorsements and words of support for Lara’s decision from the chairs of California’s Assembly and Senate insurance committees. Assembly Insurance Committee Rep. Lisa Calderon (D‑District 56) called the practice “archaic.”
“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,” she said.
Senate Insurance Committee Chair Sen. Steve Padilla (D‑District 18) added that “ratemaking should be a fact-based process grounded in real indicators of risk like safety record, miles driven, and years of experience.”
“California has changed dramatically over the last three decades, and our insurance regulations must evolve with it,” continued Commissioner Lara. “The responsibility of a regulator is not to preserve outdated rules, but to ask whether they are still fair, justified, and supported by the evidence. When a rating factor no longer belongs in a modern insurance system, we have an obligation to act. That is exactly what this proposal does.”
In other California news, Gov. Gavin Newsom said Sunday when signing a package of bills into law that the legislation will “accelerate California’s transition to affordable, reliable clean transportation,” according to a press release from the governor’s office.
Newsom signed SB 969, SB 1283, AB 1820, SB 1213, SB 1267, and SB 615, which he says together “cut red tape” to expedite electric vehicle charger deployment for expanded access.
“Donald Trump has failed to protect American families from paying skyrocketing costs at the pump because of his reckless foreign conflicts and Big Oil greed,” Newsom said in the release. “California is choosing a stronger path: more EVs on the road, more chargers in our communities, and more affordable choices for families and businesses. These laws cut red tape, accelerate the infrastructure we need, and build a safer, more reliable, and more affordable future, one that is powered by California innovation, not dictated by global oil markets.”
Newsom also signed SB 1213, SB 1267, and SB 615 to strengthen consumer protection and expand access to the clean transportation economy, according to the release.
“These laws improve transparency in state incentives for zero-emission trucks, help Californians living in homeowner associations access EV charging, and provide consumers with clearer EV battery information when comparing vehicle options,” the release states.
All of the legislation signed on Sept. 20 builds on Newsom’s MyFirstEV program, which aims to help first-time zero-emission vehicle buyers access immediate savings on their first EV purchase.
“Through MyFirstEV, eligible Californians can receive an instant rebate of up to $3,500 toward a qualifying new zero-emission vehicle or up to $1,750 toward a qualifying used vehicle,” the release states. “The program is supported by a $135.5 million state investment that is matched dollar-for-dollar by participating automakers, creating $271 million in point-of-sale savings for California families.”
Newsom’s office says California has more than 216,445 public and shared charging plugs statewide, including more than 20,000 DC fast-charging ports. It notes that California is one of the top states for EV buyers and drivers.
“California has surpassed its original goal of 1.5 million zero-emission vehicle sales by 2025, reaching more than 2.7 million cumulative ZEV sales,” the release states. “In the second quarter of 2026, Californians purchased 86,857 new ZEVs, representing 19.1% of all new vehicle sales in the state.”
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