Do you get cheaper insurance if you are non-binary?

Whether non-binary people get cheaper insurance depends heavily on your country and state, though some specific providers have faced scrutiny for offering lower rates to non-binary drivers.

In the United States

• State rules: Several U.S. states ban auto insurers from using gender as a rating factor entirely. In these gender-neutral states, gender does not affect your price regardless of what you select.
• Varying policies: In states where gender can be used, availability and handling of non-binary gender markers vary by company. Some insurers offer a non-binary option online, while others require a phone call or default to the gender marker on your state driver's license. There is no widespread, intentional discount for non-binary drivers in the U.S.

In Australia

• The pricing gap: Recent reports highlighted that certain major Australian insurers (such as NRMA and Allianz) offered lower car insurance quotes for drivers who selected a non-binary option compared to those who selected male or female.
• System defaults: Industry experts note this discrepancy was likely an unintentional coding quirk where a third risk category defaulted to more favorable pricing rather than deliberate policy, and insurers announced they were reviewing the pricing structures.

Car insurance can be cheaper for non-binary drivers in certain regions and with specific insurance providers, though policies vary significantly by location.

How Non-Binary Pricing Works

• International Examples: In countries like Australia, tests by media outlets and radio stations confirmed that major insurers (such as NRMA and Allianz) generated lower premium quotes for non-binary applicants compared to men and, in some cases, women with identical driving profiles. Industry experts note this often happens because a newly added third gender category defaults to more favorable pricing or intermediate risk brackets rather than intentional discounting.
• United States and Canada: In the U.S. and Canada, pricing depends heavily on state or provincial regulations. Some jurisdictions prohibit insurers from using gender as a rating factor entirely, meaning non-binary drivers see standard gender-neutral rates. In states where gender is still permitted in underwriting, availability and treatment of non-binary gender markers vary by company, and some carriers require manual phone quotes.
• Accuracy Requirements: Misrepresenting your gender identity or legal sex markers on an insurance application to secure a lower rate can be classified as insurance fraud or result in denied claims if an insurer investigates your details after an accident.

Being non-binary is relatively uncommon in the general population, though identification rates are significantly higher among younger adults and youth.

Population Statistics in the United States

• General Population: Recent data from the Pew Research Center indicates that roughly 3% of U.S. adults under 30 identify specifically as non-binary, while the overall percentage for older adults drops below 1%.
• LGBTQ+ Community: According to a report by the Williams Institute at the UCLA School of Law, non-binary individuals make up about 11% of the adult LGBTQ+ population in the U.S., accounting for approximately 1.2 million adults.
• Youth Demographics: Surveys by The Trevor Project show that among surveyed LGBTQ+ youth (ages 13–24), roughly 26% identify as non-binary.

Key Generational and Social Factors

• Age Breakdown: Approximately 76% of adults who identify as non-binary are under the age of 29.
• Visibility vs. Rarity: Sociologists and researchers note that the higher numbers among younger demographics reflect greater cultural awareness, shifting social definitions, and safer environments for open identification rather than a sudden biological change.

Yes, gender affects car insurance prices in most U.S. states, with men generally paying slightly more on average.

How Gender Affects Rates

• Overall Averages: Nationally, men pay about 1% to 4% more for car insurance than women. This equals roughly $33 to $51 more per year.
• The Age Factor: Age matters much more than gender. Teenage drivers and young men under 25 face much higher rates because statistics show they take more risks and get into more severe crashes.
• Older Drivers: After age 25, the price gap between men and women shrinks to a very small amount, and rates become nearly identical. In some age brackets or specific states, women may even pay slightly more than men.

States That Ban Gender Pricing

Insurance companies cannot use gender to set prices in seven states:

• California
• Hawaii
• Massachusetts
• Michigan
• Montana
• North Carolina
• Pennsylvania

Other Important Factors

Insurers look at many other details besides gender to set your price:

• Your exact age and driving history
• Where you live and park your car
• The make and model of your vehicle
• Your credit score in states that allow it

You can compare average rates by reviewing MarketWatch or checking The Zebra for a detailed breakdown of state data.

The term "gender rule" in insurance usually refers to either an older Coordination of Benefits (COB) guideline for children's health plans or modern regulations regarding gender-based pricing and discrimination.

1. The Coordination of Benefits (COB) Gender Rule

When a child is covered under the health insurance plans of both parents, insurance companies use a tie-breaker rule to decide which plan pays first (the primary insurer).

• The Old Rule: Historically, the "gender rule" stated that the father’s plan was automatically primary over the mother’s plan.
• The Modern Shift: Most insurance plans have replaced this with the birthday rule, which assigns primary coverage to the parent whose birthday falls earlier in the calendar year, regardless of gender.

2. Gender Rating and Anti-Discrimination Rules

In pricing and underwriting, "gender rules" refer to laws that dictate whether insurers can charge men and women different rates.

• Health Insurance: In the United States, the Affordable Care Act (ACA) banned gender rating, meaning health insurers cannot charge women higher premiums just because of their gender.
• Auto and Life Insurance: Rules vary by region. For example, the European Union banned gender-based pricing for motor and life insurance, requiring unisex rates. Several U.S. states (like California and Hawaii) also prohibit using gender to calculate auto insurance rates.