Gender-Neutral Car Insurance

How do car insurance companies account for gender-fluid and non-binary drivers?

Car insurance and gender neutrality


While some US states have started recognizing non-binary gender identity on official driver's licenses and IDs, this acknowledgement is less common in the insurance industry. Car insurance companies have been slow to adjust for several reasons:

  1. Gender is commonly used as a car insurance pricing factor
  2. Insurance companies are often slow to adapt


Gender 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 you’ve left your teen driving years behind, the difference between car insurance rates for women and men amounts to a rounding error.


Gender Average Annual Premium % Difference
Female $1,435 --
Male $1,427 0.52%

Gender is a major pricing influencer for young drivers. On average, young female drivers pay 13% less for car insurance than do young male drivers. Because historical data shows that young male drivers get into more accidents and file more claims, insurers charge higher premiums to account for the additional risk.


Age Average Annual Premium % Difference — Male vs. Female
16 $5,234 14.53%
17 $4,970 13.76%
18 $4,630 12.35%
19 $4,074 12.24%

So, while a gender-neutral car insurance policy might not change much for an older driver, the stakes are higher when a young driver is involved.

Bear in mind, you can find gender-neutral car insurance in some states — but it’s by way of a technicality. Hawaii, Massachusetts, and California are the only states that do not use gender as a rating factor. So, while your gender is still recorded in your car insurance policy, it does not contribute to pricing.





Auto insurers infrequently adjust rating factors


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 what a “gender-neutral” individual will mean in terms of risk. It's hard for an insurer to provide a non-binary gender option to their client if a gender-neutral driving risk baseline hasn't yet been established.




Additional resources


While gender neutral car insurance doesn’t currently exist, it might in the future. Because car insurance companies rely on previous years' data to set pricing, it is hard for an insurer to price a gender-neutral client. But with ongoing legislation and support, car insurance for non-binary drivers could soon be a reality.

If you're interested in gender-neutral car insurance, speak directly with an insurance agent. Most online platforms will require you select male or female to obtain a quote, but an agent might offer more flexibility.

For more articles regarding gender and car insurance, see the below:


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