One of the underwriting questions in auto insurance is gender. Studies have shown that single males under 21 are among the highest risk pool for auto insurance. If a single male in this age group decides to change his gender from male to female and his personal pronoun from a he to a she.
How will the insurance underwriter rate this risk? They know that he is John but he decides that he is a she and is called Joann. Are there any liability issues for the insurance company if they rate him as a male but he says he is a female?
Typically, your driver's license indicated your sexual orientation, although it is a bit unofficial. Initially, you may see carriers use that data when rating a driver and determining the appropriate premium to charge. However, in the future, they may be changes to the way insurers handle this very delicate situation.
State laws and regulations may also impact the situation. Of course, recent legislation has changed in many states.
For instance, if medical records (furnished upon request) indicate a gender different than what is listed on the actual driver's license, an underwriter may make a determination to change the way that driver is rated. Ultimately, it is a corporate decision.
Important Note: Answer was provided by Ed Harris, one of the nation's premier car insurance experts, and owner of the top-rated website Carinsurancezoom.org, where consumers can quickly view the companies that offer the best rates in their area.
That said, you never know, some companies and States are a little more progressive and understanding, so it's certainly worth asking your auto insurance agent. Good luck, and thanks for asking!