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?

  1. 15645 POINTS
    Edward HarrisPRO
    Owner, Best Health And Car Insurance Rates - Instant Online Quotes, US
    Gender change and the impact on auto insurance rates. Wow! That's a tough question even for me...a broker with 34 years of experience.

    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, where consumers can quickly view the companies that offer the best rates in their area.
    Answered on May 5, 2015
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Insurance is regulated by state. Each state can adopt a different approach to the issue that you have raised. In California, the voters took rating matters into their own hands with a constitutional amendment. Sex or gender, as you say, is not a rating factor in California. That means that in California if you switch sex, switch back and switch again, nothing will change as long as you are residing in California, and driving a car insured in California.
    Answered on May 5, 2015
  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! I think that the industry will have to rethink how they treat this issue somewhere along the line, but I think for the time being it is safe to assume that they will react as any profit oriented industry would. Unless you can show them medical proof that you are now "Joann", and not still anatomically "John", I'd expect to pay the "John" based rates. I am afraid that they would speak carefully about appreciating your choices, but then fall back upon corporate doctrine, and charge you according to your rate category. There is no statistical evidence that would persuade them that changing your gender would change your driving habits,(individually or as a rate class) so it's unlikely that they would reclassify you.
    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!
    Answered on May 6, 2015
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