Applying for car insurance isn’t exactly glamourous, but for the most part, it’s rather simple. For transgender or nonbinary drivers, however, one aspect of the application – choosing a gender — can be particularly difficult.
That’s because nonbinary and transgender people frequently lack the flexibility to select their gender identity, which others take for granted.
How gender complicates insurance applications
Gender is a common component used to calculate car insurance rates, but there is no standard for how insurers define or verify gender.
Some companies require sex at birth, some require gender to match your driver’s license, and others allow you to choose the gender you identify with, according to Charlie Arrowood, counsel for the Name Change Project at the Transgender Legal Defense & Education Fund, a New York City-based nonprofit dedicated to ending discrimination against transgender people.
Although gender is provided on an application, insurers may really ask for your sex. Sex and gender are frequently used interchangeably, although sex relates to biological characteristics, whereas gender refers to how one identifies within society.
This contradiction poses a barrier for both transgender people, whose gender identification differs from their sex at birth, and nonbinary people, whose gender is neither absolutely male nor female.
Why does gender matter?
You may ask why insurers need to know your gender in the first place.
Some research suggests a link between gender and driving habits. For example, the Insurance Institute for Highway Safety discovered that male drivers were nearly twice as likely as females to be involved in a fatal incident from 1975 to 2019.
However, activists such as the Consumer Federation of America, a nonprofit organization in Washington, D.C., contend that charging a good driver a higher cost based only on gender is discriminatory.
After all, gender “really does not tell you anything about someone’s driving history,” Arrowood claims.
Gender-based pricing is not permitted for determining car insurance rates in seven states: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania. In Oregon, gender-based pricing is permitted, but insurers are required to provide rates for anyone who chooses a gender-neutral option on their driver’s license.
Rates for men and women may vary less than you think
You cannot find your rate without a quote because each insurer employs a different formula to calculate auto insurance pricing. To obtain a better understanding of how gender influences your automobile insurance, check at average auto insurance rates.
According to ReliableInsurance car insurance rates investigation, men spend $85 more per year than women for full coverage insurance, across all age categories.
Rate discrepancies might change with age. From their 30s to their 50s, men and women pay similar rates. However, 20-year-old men pay more than $400 more each year on average than women their age.
However, anyone, including young males, may save that much by shopping about and comparing prices. Because each insurer assigns a different value to personal criteria, the cheapest vehicle insurance varies by individual.
What transgender and nonbinary applicants can do
Finding the best vehicle insurance prices can be difficult even without considering the hurdles that transgender and nonbinary applicants encounter. Here are some ideas for purchasing auto insurance to assist you get through the process.
Shop around for car insurance quotes
Arrowood knew to question their insurance agent if their motor insurance rates would vary based on their gender. Fortunately, gender did not alter the rates. However, not everyone will experience the same effects. That is why comparing car insurance quotes is critical to obtaining the best deal for you.
“Really, it’s just a question of shopping around,” Arrowood adds. “The primary issue is that there is no standard… “You must do the digging.”
Don’t be afraid to talk to your agent
Changing the gender you report to your insurer can alter your rates, but not always. Arrowood recommends contacting your insurer directly and asking about their policies.
Your agent can tell you what documents are required to update your declared gender with the insurer. If you need to update your driver’s license or birth certificate, the National Center for Transgender Equality has information on how to change your name and gender in your state.
The Name Change Project helps low-income transgender and non-binary people obtain legal name changes.
Consider a trans-affirming auto insurer
If you’ve talked to your insurer and believe you’re getting an unfair premium, consult listings such as the Human Rights Campaign Foundation’s Corporate Equality Index. This index indicates how likely a corporation is to implement LGBTQ-inclusive policies.
A high rating on this list does not guarantee that a company will have gender-neutral rates, “but at least it’s a place to start,” adds Arrowood.
