Car Insurance For Trans And Non-Binary Individuals

The process of applying for car insurance is fairly straightforward.

However, the application process for transgender or nonbinary drivers may require a few extra steps.

This is because most auto insurance companies request an applicant's gender during the quote process. However, for many people, gender identity is complex and fluid. As a result, those who do not conform to traditional gender norms may find this question particularly difficult.

The good news is that many states and businesses are recognizing this, and some even provide a nonbinary option as a gender choice.

We're here to help if you're unsure how your nonbinary identity might affect your car insurance. Stay with us as we examine how to successfully navigate the process.

How Gender Complicates Insurance Applications

Many insurance companies use the term "gender" to refer to the sex a person was assigned at birth, so applicants only have two options: male or female. Sex and gender are frequently used interchangeably, but sex refers to biological characteristics, whereas gender refers to how a person identifies within society. This mismatch is especially troubling for transgender and non-binary people whose gender identity differs from their biological sex.

As a result, forcing a person to choose between their true gender identity and the sex assigned to them at birth may constitute transgender discrimination. So, why does gender matter to car insurance companies in the first place?

Car insurance rates are determined by a variety of factors, including your age and where you live, as well as the make and model of your vehicle. Younger drivers with less experience, for example, are considered more dangerous. Drivers in cities typically pay higher rates than those in smaller towns or rural areas, owing to higher rates of accidents and auto theft in cities. Insurers also use a driver's sex at birth to determine their risk level. This is because people who are assigned male at birth (AMAB) are more likely to be risky drivers than people who are assigned female at birth (AFAB).

States That Provide a Nonbinary Option for Your Driver’s License

The good news is that, as a more nuanced understanding of gender identity becomes the norm, more states are changing the way insurance companies calculate premiums based on gender.

To better tailor to an individual's preferred gender, many providers have added a nonbinary gender option—an "X" in addition to "M" and "F"—to car insurance applications. Furthermore, they do not require any type of certification to change your gender.

The following states require car insurance companies to either provide non-binary and transgender options on applications or to discount gender as a rating factor.

Arkansas
California
Colorado (not including minors)
Connecticut
Hawaii
Maine
Maryland
Massachusetts
Minnesota
Nevada
New Jersey
New Mexico
New York
Oregon
Pennsylvania
Rhode Island
Vermont
Virginia
Washington
Washington, D.C.

Some of the remaining states are joining the fight. Michigan does not yet have a gender-neutral option, but it does not require certification to change your gender. Illinois has also announced that it will offer a "X" option beginning in 2024.

Other states, meanwhile, have taken equal-opportunity policies a step further. Car insurance companies in Oregon are now required to provide rates specifically for customers who select the X gender marker identity. Gender-based car insurance rating has been outlawed in California.

If you live in a state that isn't listed above, or if you want more options, you can use the Human Rights Campaign's Corporate Equity Index tool to find a provider that will provide transgender, non-binary, or gender nonconforming alternatives.

How to Change Gender on a Driver’s License

There are several factors to consider when selecting a car insurance policy, including adequate coverage and affordable rates. If you identify as transgender or non-binary, you'll want to choose a policy that reflects your gender, and updating your license could be the first step.

If you want to change your gender on your official records, you must follow your state's rules. The National Center for Transgender Equality (NCTE) offers a helpful tool that will walk you through the process of updating your gender on various documents in your state, including your driver's license. NCTE also ranks each state based on how simple the application process is for trans and non-binary applicants. Because many are based on recent legislation, nearly half of all states receive a "A" letter grade.

If you need help with a legal name change, the Name Change Project assists low-income transgender and non-binary people with this process.

Will My Rates Increase if I Change My Gender From Female to Male?

AMAB people typically pay higher insurance rates than AFAB people in states where insurance rates are determined by a person's sex at birth. As a result, if you intend to change the gender on your driver's license from female to male, you may be concerned about having to pay more for coverage. The amount you will owe, however, is determined by your state and insurance company. Changing your gender on your insurance application may have an effect on your rates, but this is not always the case. You'll need a quote to calculate your monthly rate because each provider uses a different formula to determine car insurance rates. Men pay $62 more per year than women on average across all age groups. You can also contact your insurer directly and inquire about its policies.

The good news is that other factors, such as your driving history and annual mileage, have a greater influence on your rate than your gender. Furthermore, even if you're a teen or a high-risk driver, there are numerous discounts and ways to reduce the cost of your premium.