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Which States Allow Non-Binary Gender Markers on Driver’s Licenses

And How Gender Impacts Car Insurance

By Susan Meyer

Updated April 3, 2026

Reviewed By Bree Matheson

Edited By Beth Swanson

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States that allow X markers
Why gender matters
Gender and auto insurance
Non-binary drivers and insurance

Gender Options Change Based on Where You Live

For transgender or non-binary people, having a drivers license that reflects their gender identity is more than just symbolic. It can affect their ability to gain access to public spaces and resources.

In the U.S., driver’s license policies are regulated at the state level. Some states allow users to select non-binary (X) on their drivers license.

In this article, we’re looking at the states where it’s possible to have non-binary on your drivers license, as well as how gender impacts your auto insurance rates.

States That Allow Non-binary (“X”) Markers

In 2017, Oregon became the first state to allow a non-binary (X) marker on state driver’s licenses as a result of a 2016 legal case.^[1] Since then, many states have followed. As of 2025–2026, 22 states and Washington, D.C., allow residents to select a gender-neutral “X” marker on driver’s licenses.

These states generally allow individuals to self-select their gender. That said, some states make it easier to change your gender on your driver’s license than others. Some states have an easy-to-understand form and do not require any external certification, while other states require proof of surgery, a court order or an amended birth certificate.^[2]

The legal landscape has shifted recently, and some states have rolled back access. These states include Arkansas, Florida, Kansas, Tennessee and Texas. In these states, policy changes now prohibit X markers and, in some cases, ban gender marker changes on driver’s licenses.

Why Gender on Your Drivers License Matters

At first glance, the gender marker on your driver’s license might seem like a small detail. But it serves several practical, legal and administrative purposes that can affect everyday situations from identification checks to insurance.

Identity verification

A driver’s license is one of the most widely used forms of identification in the U.S. The gender marker helps officials quickly confirm that the person presenting the ID matches the record.

For example, law enforcement, airport security or businesses verifying age (like bars or car rental companies) may use gender as one of several data points, along with name, date of birth and photo to confirm identity.

When information aligns across systems, it reduces errors, delays and mismatches.

Driving records and law enforcement

Government and private databases often rely on consistent identifying information. The gender marker helps match records across systems, such as:

Department of Motor Vehicles (DMV) databases
Social Security records
Insurance policies

During traffic stops or accidents, officers use driver’s license information to pull up records quickly. Gender can be part of that identifying profile, helping ensure the correct driving history and legal record are accessed.

The role of gender on IDs is changing. Many states now allow non-binary (“X”) markers or have reduced reliance on gender altogether. At the same time, some policymakers question whether gender is necessary for identification at all, especially as biometric and digital verification methods improve.

How Gender Is Used in Car Insurance Rating

As mentioned above, gender identity can also play a role in auto insurance. But why is that? Well, because in many states, gender is used as a rating factor in insurance.

We know that our driving record has an impact on what we pay, but what some people don’t know is that personal rating factors like age, gender and credit score also have a significant impact. This is because insurance companies have found correlations between these rating factors and the risk of filing a claim.

So who pays more?

Teen boys generally pay significantly more than teen girls for car insurance, but the difference decreases sharply with age.
Men pay more than women for car insurance in 38 states.
There are seven states where gender cannot be considered as a rating factor when pricing insurance.
And in four states and Washington DC, women pay more on average for car insurance.

States that restrict or ban gender-based pricing

Some states have moved to eliminate gender as a rating factor, including:

California
Hawaii
Massachusetts
Michigan
Montana
North Carolina
Pennsylvania

In these states, insurers must use gender-neutral pricing models.

What About Insurance for Non-Binary Drivers?

Many insurers historically required applicants to select male or female, even if IDs allowed “X.” However, some insurers are now removing gender as a required field or using gender-neutral pricing models.

There are some states that require auto insurance companies to either offer non-binary gender options on insurance applications or require companies to discount gender as a rating factor.

In states where gender is still used, insurers may default to a binary rating system or use internal underwriting rules for non-binary drivers. Due to limited data on “X” gender markers, insurers may default to including them in another gender category or put more stock in other personal rating factors.

Wrapping Up

In 2026, close to half of U.S. states allow a non-binary “X” gender marker, but policies are changing quickly and vary widely by state. Having the correct designation on your driver’s license can be important, as many states allow gender as a rating in auto insurance.

Sources

Oregon becomes first state to add gender-neutral option on driver's licenses. [PBS]
Identity document laws and policies. [MAP]

Jump to

States that allow X markers
Why gender matters
Gender and auto insurance
Non-binary drivers and insurance

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