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Ava Lynch

Insurance Analyst

Credentials
  • 7+ years of Experience in the Insurance Industry

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior insurance contributor, providing insights and data a…

Gender identity and car insurance: what to know

While many U.S. states recognize non-binary gender identity on official driver's licenses and IDs, the auto insurance industry has been slower to adapt, continuing to use gender as a rating factor when pricing policies.

Currently, the below states require auto insurance companies to either offer non-binary gender options on insurance applications or require companies to discount gender as a rating factor:

Learn more about the current state of gender-based pricing in the car insurance industry.


How gender is used as an auto insurance rating factor

Gender is one of the primary factors used by car insurance companies to assign premiums.
 
It's worth noting that gender only impacts insurance costs substantially for teen drivers, as young male drivers pay a premium compared to their female counterparts. Once a driver leaves their teen driving years behind, the difference between car insurance rates for women and men is relatively small. Because historical data show young male drivers get into more accidents and file more claims, insurers charge higher premiums to account for the additional risk.
Car Insurance Rates for Male and Female Teenage Drivers
Gender Avg. Monthly Premium Avg. Annual Premium
Female $457 $5,479
Male $531 $6,372

The Zebra’s auto insurance data methodology

The auto insurance rates published in this guide are based on The Zebra’s annual analysis of average car insurance premiums in every U.S. ZIP code. This data comes to us from Quadrant Information Services, which sources the latest approved rate filings across carriers in each state from S&P Global. Quadrant then uses an internal QA process to validate the information and build reports before the data is queried and analyzed by The Zebra.

Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage at these levels:

  • $50,000 per person/$100,000 per incident for bodily injury liability
  • $50,000 per incident for property damage liability
  • $500 deductibles for collision and comprehensive coverage

To provide insight to consumers on how specific personal factors (like age, location and coverage level) can affect your premium, this base profile is then adjusted for different factors commonly used by insurance companies. For more information, see our full data methodology.

While a car insurance policy priced without gender taken into consideration might not affect older drivers, the stakes are higher when a young driver is involved.

 
 

 

Why do auto insurance companies use a driver's gender to set their rates?

Insurance companies — especially auto insurers — have specific ways of doing business from which they’re slow to deviate. Insurance companies determine what you will pay going forward — your premium — based on the previous year's historical data. They rely on the past to dictate how they do business in the future.

For an insurance company, it is hard to predict the risk a non-binary individual will present, as opposed to a driver identifying as female or male. It's hard for an insurer to provide a non-binary gender option to their client until a gender-neutral driving risk baseline is established.

 


 

How to Save

At the end of the day, adding up discounts can only do so much. Sometimes you’re paying too much for car insurance because you’re with the wrong company. The best way to find affordable car insurance is often by comparing car insurance quotes. Enter your ZIP code below to receive personalized quotes in minutes.  

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About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.