Car Insurance for Transgender and Nonbinary People

Insurance companies utilize a variety of rating elements to decide how much you'll pay for vehicle insurance. Many states allow insurers to use gender as a rating component. Male and female drivers often pay different prices for auto insurance.

The available data does not clearly indicate how one's gender influences gender-based insurance ratings for transgender and nonbinary drivers. However, certain crucial characteristics, including a driver's claims history, can have a significant impact on their insurance price, independent of gender.

How Gender Affects Car Insurance Rates

Gender is just one factor that some insurers use when determining your vehicle insurance costs. Drivers who are cisgender—people who identify as the sex specified on their birth certificates—are frequently paid according to statistical data that corresponds to their gender. However, the same rating process may not be applicable to transgender and nonbinary vehicle insurance clients.

Cisgender Policyholders

It is often assumed that American women pay less for auto insurance than males since female drivers are involved in fewer car accidents than male drivers. However, new state-level research undertaken by the Consumer Federation of America (CFA) challenges this idea.

"We discovered that, contrary to conventional belief, women are charged higher than men. It wasn't consistent across states or between insurance companies. "We discovered that women were charged more depending on their gender, sometimes significantly more, and it did not appear to be related to any good risk that we could identify. For example, in Arkansas, we discovered that men were charged an average of $529 for auto insurance, while women were charged $537.

However, rates vary greatly between carriers and states. "We found that in some states, some insurance companies charge men and women equally," she said. "There are some insurers who charge men higher auto insurance premiums than women, and there are some auto insurance companies that charge women higher insurance premiums than men."

According to CFA data, price variances are fairly substantial in some cases. For example, CFA's 2022 Delaware gender-based vehicle insurance investigation discovered that one large insurer charged 35-year-old women 21% more than men of the same age. In Louisiana, female drivers paid 17% more in premiums than their male counterparts.

Transgender and Nonbinary Policyholders

There is currently insufficient data available to assess how insurers set premiums for transgender and nonbinary policyholders. 

"In our Delaware report, we found that some folks transitioned, then their auto insurance rate went up," DeLong went on to say. "We obtained quotations from Progressive for nonbinary drivers in Colorado and discovered that they were charged an intermediate price. For example, male drivers were quoted an average of $53 per month. They quoted a nonbinary driver $55 per month and a woman $57 per month."

Other Rating Factors

A driver's gender rarely influences their vehicle insurance price, although other rating factors can.

"I have not seen a gender discrepancy," said Fritz Oviedo, an insurance agent with Affluence Insurance Services in Dallas, Texas. Affluence sells policies for over 30 insurance providers. "Age can be a consideration if you're over 70, but your record is usually more important if you've had speeding tickets or claims. Location is also an important issue. For example, charges will differ between inner city and secure gated communities.

Gender on Car Insurance Applications

Some states, including California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania, prohibit gender-based vehicle insurance ratings.

Some insurers no longer use gender as a rating component. "State Farm is one of the biggest companies that does not use it," he said. "Shelter Insurance also does not seem to use gender as a rating factor; neither does Auto-Owners."

According to Oviedo, some insurers are now offering additional gender options on car insurance applications. TrustedInsurance used a Texas ZIP code to examine the online quote procedure of various major auto insurance carriers. We discovered that some suppliers only allow you to select male or female gender markers, whereas one has removed the gender question entirely.

How to Get Car Insurance as a Transgender or Nonbinary Person

Transgender and nonbinary drivers can purchase auto insurance from the same companies that provide coverage for cisgender drivers. While the buying procedure is largely the same for everyone, transgender and nonbinary people may benefit from seeking out insurance brokers and companies who understand their specific needs and concerns.

Shop Around for Quotes

Obtain quotes from several insurers. Most major carriers provide free online quotations. Print each quote and compare it to those from other insurance firms. When comparing auto insurance quotes, consider the prices, coverages, optional coverages, and discounts.

Talk to an agent.

When chatting with an insurance agent, inquire whether their organization utilizes gender as a rating component. The agent will ask you questions about your driving record and claims history, as well as details regarding the car you want insured. Always answer all questions honestly and completely.

Find an insurer that offers LGBTQ-inclusive policies.

Also, look for insurance companies that have a high LGBTQ employment rate. Each year, the Human Rights Campaign releases its Corporate Equality Index, which identifies hundreds of corporations with the top LGBTQ-inclusive workplace policies, benefits, and practices.

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

According to the Movement Advancement Project, 22 states and the District of Columbia now enable drivers to choose between male, female, or nonbinary gender markers on their driver's licenses:

• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• District of Columbia
• Hawaii
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• Oregon
• Pennsylvania
• Rhode Island
• Utah
• Vermont
• Virginia
• Washington

Car Insurance Rates for Transgender and Nonbinary People

According to the CFA, seven states prohibit insurance companies from using gender-based auto insurance ratings: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania. Where permitted, many carriers consider an applicant's or policyholder's gender to calculate their insurance rate.

Keep in mind that gender is simply one of the factors that insurers may consider when determining how much you'll pay for auto insurance. In general, your claims history and driving record have a greater impact on your insurance cost.

We currently do not have enough data to assess how transgender and nonbinary drivers' vehicle insurance prices compare to those of cisgender consumers.

The Bottom Line

The importance of gender in determining vehicle insurance prices is shifting. A few states have prohibited gender-based premium rating, citing gender discrimination, and several insurers have abandoned the practice.

Car insurance premiums can vary greatly between insurers and states. While gender may influence a carrier's underwriting requirements, your driving and claims history usually have the most impact on your insurance cost.