This is because nonbinary and transgender people frequently lack the freedom to choose the gender with which they identify, which others may take for granted.

How gender complicates insurance applications

Gender is a common factor used to determine a car insurance rate, but there is no standard for how insurers define or verify gender.

According to Charlie Arrowood, counsel for the Name Change Project at the Transgender Legal Defense & Education Fund, a nonprofit based in New York City dedicated to ending discrimination against transgender people, some companies ask for sex at birth, some require gender to match your driver's licence, and others let you choose the gender you identify with.

Although your gender may be listed on your application, insurers may actually ask for your sex. Sex and gender are frequently used interchangeably, but sex refers to biological characteristics, whereas gender refers to how you identify within society.

This inconsistency poses a problem for both transgender people, whose gender identity differs from their birth sex, and nonbinary people, whose gender is neither strictly male nor strictly female.

Why does gender matter?

You may be wondering why insurers need to know your gender in the first place.

According to some studies, there is a link between gender and driving habits. For example, the Insurance Institute for Highway Safety discovered that male drivers were nearly twice as likely as female drivers to be involved in a fatal crash from 1975 to 2019.

Nonetheless, advocates such as the Consumer Federation of America, a nonprofit organisation based in Washington, D.C., argue that charging a good driver a higher rate based solely on gender is discriminatory.

Gender, after all, "really doesn't tell you anything about someone's driving history," according to Arrowood.

Gender-based pricing is prohibited in seven states: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania. In Oregon, gender-based pricing is permitted, but insurers are required to provide rates to anyone who selects the gender-neutral option on their driver's license.

Rates for men and women may vary less than you think

You can't find out your rate without a quote because each insurer uses a different formula to determine auto insurance prices. You can look at average auto insurance rates to get a better idea of how gender affects your car insurance.

According to InsuredCircle car insurance rates analysis, men pay $85 more than women on average for full coverage insurance across all age groups.

Rate disparities can vary according to age. Men and women, for example, pay comparable rates from their 30s to their 50s. However, 20-year-old men pay more than $400 more per year than women of the same age.

Anyone, including young men, can save that much money by shopping around and comparing quotes. Because each insurer places a different value on personal factors, the cheapest car insurance is not the same for everyone.

What transgender and nonbinary applicants can do

Finding the best car insurance rates is difficult enough without the additional challenges that transgender and nonbinary applicants face. Here are some car insurance buying tips to help you get through the process.

Shop around for car insurance quotes

Arrowood was aware that they should inquire with their insurance agent about whether their auto insurance rates would differ based on their gender. Fortunately, gender had no effect on the rates. However, not everyone will achieve the same results. That is why comparing car insurance quotes is critical to locating the best deal for you.

"It's really just a matter of shopping around," Arrowood says. "The main issue is that there is no standard." You must do the digging."

Don’t be afraid to talk to your agent

Changing the gender you report to your insurer may or may not affect your rates. Arrowood suggests contacting your insurer directly and inquiring about its policies.

Your agent will inform you of the documents required to change your stated gender with the insurer. If you need to update your driver's licence or birth certificate, the National Center for Transgender Equality has information on how to do so in your state.

If you require additional assistance in obtaining a legal name change, the Name Change Project helps low-income transgender and non-binary people with this process.

Consider a trans-affirming auto insurer

If you've spoken with your insurer and believe you're being charged an unfair rate, consult lists such as the Human Rights Campaign Foundation's Corporate Equality Index. This index indicates the likelihood of a company implementing LGBTQ-inclusive policies.

A high rating on this list does not guarantee that a company will have gender-neutral rates, according to Arrowood, "but it's a place to start."