Should you state your gender when applying for auto insurance?

Nov 15, 2022 By Triston Martin

We can help you figure out some specifics if you're unsure how a nonbinary identity can state your gender influence your auto insurance.

The majority of insurers use your gender to determine your prices. According to research, men are often more likely to drive while intoxicated and be involved in crashes than women, especially with significant impacts. However, detractors contend that a person's behaviour rather than gender is a stronger predictor of danger.

Start with your driver's licence gender.

Most states allow you to select either "F" for females or "M" for males when applying for a driver's licence. It's critical to understand how to change the gender on your driver's licence because what you mark must correspond to the gender option you choose for your auto insurance.

For transgender and nonbinary drivers, the conventional F and M gender markers don't always function. All states have administrative procedures for transgender drivers to change their gender on their driver's licence, but some offer a more accessible approach than others.

The driver, who requested that The Balance refer to him as "Wyatt," claimed that he could change the gender on his passport, Social Security card, and driver's licence. "My therapist wrote me a letter confirming that I am a man. That was all that was necessary for North Carolina to change my gender. I can only speak for myself, of course. I've heard from some trans people who struggle harder with the name- and gender-change procedure.

Choosing A Gender Can Be Difficult

Because nonbinary people don't identify as either male or female, choosing a gender marker on their driver's licence can be more difficult. Thankfully, more jurisdictions are facilitating nonbinary drivers' ability to add the appropriate gender marker to their driver's licences.

States That Offer a Nonbinary Driver's License Option

In 19 states and the District of Columbia, nonbinary applicants seeking driver's licences have that option as of September 2020:

States That Offer a Nonbinary Driver's License Option

The gender-neutral option, denoted by an "X" gender marker on identification documents, is intended to lessen ambiguity for nonbinary persons. Still, the X doesn't always have the same legal meaning, according to Rodrigo Heng-Lehtinen, NCTE's deputy executive director for policy and action.

Policies for car insurance and gender

You can update your auto insurance company whenever you change the gender designation on your driver's licence. For Wyatt, Geico made the process straightforward.

He said that to change his gender on his insurance, he had to submit to the company a photocopy of his new driver's licence and a certified copy of his new name from the state of North Carolina.

Discovered Contradictions

We discovered gender-related anomalies when we obtained quotations from auto insurance companies. First, we asked for quotes from drivers in California and Minnesota, two states that allow drivers to choose their gender when applying for a licence. While Allstate, Nationwide, and State Farm only provided female and male alternatives in those two states, Amica and Progressive supplied options for all three genders—female, male, and nonbinary.

Rates for Nonbinary Drivers' Auto Insurance

A few jurisdictions are focusing on how nonbinary people might identify with insurers and whether or not that influences premiums.

The Oregon Division of Financial Regulation published a bulletin in April 2018 requiring auto insurance providers who base premiums on a customer's gender to include the X gender marker on insurance applications.

Estimates from the California Department of Insurance

A male driver with at least two years of driving experience, an average number of miles driven yearly, and a clean driving record might save an average of $115 annually due to the non-gender rating legislation, according to estimates from the California Department of Insurance. However, the average yearly rate increase for female drivers with the same profile may be roughly $53.

But remember the anomalies in California and Oregon. Although nonbinary gender is an option in 19 states and Washington, D.C., most have not addressed the gap in vehicle insurance rates depending on gender.

Insurance Firms' Discretion

In the end, he remarked, "that's a fairer system." Insurance companies have the right ones. The ranking is gender-neutral, keeping the emphasis on danger. It rapidly transforms from a surgical instrument to an exceedingly blunt one.

Rates for Transgender People's Auto Insurance

It's difficult to predict how changing your gender marker may affect your auto insurance cost. When calculating rates, providers consider various variables, including location, annual mileage, credit score, and driving history.

According to anecdotal reports, rates could increase or decrease, according to Heng-Lehtinen. "Notifying the insurance provider of a driver's licence change is only logical at that moment. If the rate immediately changes, nothing else has changed, so you can be sure it's because of their gender.

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