Car Insurance for Transgender and Nonbinary Drivers

In most places in the United States, men pay more for car insurance than women. This is legal in most states because male drivers have statistically higher rates of car crashes, incidents of driving under the influence, and other harmful driving behaviors. This makes them more likely to file insurance claims, so insurance companies charge men more for premiums to protect themselves against future losses.

Let’s take a look at the reasoning behind this using 2020 data from the National Highway Traffic Safety Administration’s Fatality Analysis Reporting System (FARS), which tracks car crashes across the U.S.¹ 2020 is the most recent year for which data is currently available.

Why Gender Matters

• Car crash rates: In 2020, men were involved in 56 percent of all car crashes, while only 44 percent involved women. This gender disparity was most severe when it came to fatal car crashes, with rates at 68 percent for male drivers versus 32 percent for female drivers.
• DUI rates: Men are also more likely to drive under the influence, leading to DUI and DWI convictions. Of car crashes in which a driver had a blood alcohol concentration (BAC) of .08 or higher, meaning they were intoxicated, men were involved 68 percent of the time, whereas women were involved 29 percent of the time.
• Speeding rates: Out of all car accidents involving speeding in 2020, men were involved in 60 percent, compared to 40 percent for women. This disparity was highest in fatal crashes, where the male-to-female ratio was seven to three.
• Distracted driving rates: Out of the fatal crashes that involved a distracted driver in 2020, 66 percent involved men, while only 34 percent involved women.
• Drowsy driving rates: Men were involved in 69 percent of fatal crashes that involved drowsy driving, while women were involved only 30 percent of the time.

Even though there’s a stereotype about women being bad drivers, the statistics are clear that men are more likely to get into accidents and exhibit bad driving behaviors that lead to injuries, property damage and even death.

How Gender Affects Rates

According to our proprietary data, men pay an average of $1,323 for car insurance annually, while women pay 9 percent less — $1,211 on average.

How Age and Gender Affect Rates

The difference in insurance prices between men and women typically lessens with age. Young men usually have the highest rates when comparing car insurance quotes across ages and genders.

Will Your Rates Increase If You Transition From Female to Male?

If you live in a state where insurance companies are allowed to determine prices based on gender, your rates may increase if you transition from female to male. However, if you have a good driving record and are older than 25, the increase shouldn’t be too substantial.

In 42 states and Washington, D.C., it’s legal for insurance companies to determine rates based in part on gender. Find where your state stands below.

The only states that outright ban the use of gender when determining car insurance premiums are:

• California
• Florida
• Hawaii
• Massachusetts
• Michigan
• North Carolina
• Ohio
• Pennsylvania

In these states, if you transition, your rates shouldn’t go up based on your gender alone.

Good news: If you have already changed your gender on your driver’s license, the process of getting auto insurance should be fairly similar to the process for cisgender people.

1. Determine your needs: First, decide which insurance coverages and limits you want. That way, you can compare quotes apples to apples.
2. Compare quotes: Get quotes from multiple providers to see which has the lowest rates.
3. Check ratings: Cost isn’t the only factor you should take into account. Consider third-party ratings on customer satisfaction from organizations like J.D. Power, as well as creditworthiness, as assessed by companies like S&P.
4. Ask about discounts: Finally, ask your agent or broker what discounts apply to you. Once you know that information, you’ll be ready to choose the best option.

In addition to gender, most insurance companies use the following factors to determine car insurance rates.

• Address: Your mailing address is a key factor in quotes. Rates vary by state and location heavily. For example, in 2020, the last time the National Association of Insurance Commissioners released data, the average annual cost of car insurance was lowest in North Dakota ($692) and highest in Louisiana ($1,495), a difference of 116 percent.² Even within states, you’ll find lower rates in suburban/rural areas with lower population densities and crime rates and higher rates in cities.
• Age: Most states allow car insurance companies to discriminate based on age, as younger, less experienced drivers are most likely to have crashes.
• Coverages: The more coverage and the higher limits you get, the more you’ll pay in premiums. The size of your deductible affects the cost as well: you’ll pay lower rates for policies with high deductibles and vice versa.
• Credit score: Every state except Massachusetts, Michigan, Hawaii, and California lets car insurance companies use your credit score to determine car insurance rates. Expect higher rates if you have poor credit, as that indicates a higher likelihood of filing claims.
• Driving record: Someone with a poor driving record, i.e., a history of accidents, claims, and tickets, will pay higher rates than someone with a clean driving record.
• Marital status: In every state except Arizona, Hawaii, Iowa, Massachusetts, Michigan, New Jersey (for widows/divorced people), Ohio, and Wyoming, car insurance providers can use marital status as a factor to determine premiums. Married people have lower claim rates than those who are single, separated, divorced, or even widowed.
• Mileage: If you have lower annual mileage, you can pay less than someone with high mileage, especially with pay-per-mile insurance.
• Vehicle: Since car insurance follows the vehicle, not the driver, the type of car you have matters. A study from AAA found that electric vehicles are the most expensive to insure, while compact SUVs, which have high safety ratings, are the least costly.³

No state explicitly outlaws changing your gender on your driver’s license. However, some require proof of gender confirmation surgery. Some states, like Alaska, require even more proof of a gender change. See your state’s policy below if it has one.

In most cases, changing your gender on your car insurance policy will involve changing it on your driver’s license. The following states allow you to identify as nonbinary on your driver’s license with a gender-neutral option, typically an X. There are no requirements to change your gender on your license in any of these states, which includes changing your gender to nonbinary.

• Arkansas
• California
• Colorado
• Connecticut
• Hawaii
• Maine
• Maryland
• Massachusetts
• Minnesota
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• Oregon
• Pennsylvania
• Rhode Island
• Utah
• Vermont
• Virginia
• Washington

In every other state, you must choose between “male” or “female” on your driver’s license. However, as noted above, not all states let you change your gender on your driver’s license.

Letting your car insurance provider know of your gender transition should be as easy as contacting your insurance agent and notifying them about the change. You’ll probably want to change the gender on your driver’s license before you change it on your car insurance, though, because your car insurance is based in part on your driver’s license information.

While there is a chance your insurance premiums will change if you transition, and the process to change your gender on your license may seem burdensome, the bright side is that the actual act of getting car insurance isn’t any different for transgender and nonbinary individuals. To learn more about auto insurance for marginalized groups, check out our article on car insurance for undocumented immigrants.