XGender car insurance: Find the right policy at a fair price

Did you know that depending on where you live, your gender could play a role in what you pay for car insurance? So, what does that mean if you’re non-binary or gender non-conforming?

When calculating insurance rates, insurers consider many factors like your driving history, where you live and work, and the age and type of vehicle you drive. In some Canadian provinces, including Ontario, Alberta, Quebec, and Nova Scotia, your gender is also one of the pieces of information used to determine insurance rates.

Until recently, Canadian identification documents (IDs) only provided two gender options: male or female. In 2017, Ontario introduced a third gender option, gender X, for non-binary people (anyone who doesn’t identify as exclusively male or female). This change was eventually adopted by all provinces, and by 2019, gender X was an option available on all driver's license applications across Canada.

Read on to learn more about:

• How gender has impacted auto insurance rates in Canada, historically
• How insurance companies are adapting to the addition gender X to Canadian IDs
• What non-binary drivers, who have identified as gender X on their driver’s license, should consider when shopping for car insurance

How gender impacts car insurance rates in Canada

Traditionally, insurance companies have used data to calculate a driver’s risk level and set the cost of their insurance premium. This includes statistics on things like accident rates, driving behaviour and claims history. 

Historically, the data has shown that male drivers are more likely to be involved in accidents and take higher risks than female drivers. This has led to higher insurance rates for men.¹ On average, women in Canada pay 5 - 15% less for car insurance than men do.²

Now, however, in some Canadian provinces, including British Columbia, Saskatchewan, Manitoba, New Brunswick and Newfoundland, insurers aren’t allowed to use gender as a factor to determine rates anymore. 

How insurance companies are responding to gender X

Since gender X was only introduced as an option on Canadian IDs in 2019, there isn’t enough statistical data on this group of drivers for insurers to fairly evaluate the level of risk. There are also no Canada-wide guidelines currently set for how insurance companies should calculate car insurance rates for non-binary drivers. This leaves it up to each insurance company to set their own standards.

Some insurance companies have opted to set rates for gender X drivers that are in line with those they set for female drivers; meaning non-binary drivers are offered the lower of the two gendered rates. Other insurers offer a rate somewhere between the male and female averages.

What non-binary drivers should look for when shopping for auto insurance

If you’re non-binary and identify as gender X on your driver’s license, there are a few things you should do when shopping for an auto insurance policy:

• Ask about the factors that determine your rate. Ask your insurance broker what personal information different companies consider when setting rates. Understanding how your rates would be determined by an insurer will help you decide if you want to move forward or if you want to find one that’s a better fit for you
• Look for companies that offer gender-neutral policies. Some insurance companies have moved away from gender-based rating and offer policies that don't use gender as a rating factor.
• Consider usage-based insurance. Usage-based insurance (UBI) uses telematics technology to track your driving habits and determine your rate accordingly — giving you more control over your car insurance rate. 
• Get multiple quotes. As a broker, we revolve around you. We always have your best interests in mind; and we work with many different insurance companies to make sure that we get you the coverage you need at the best possible price. You can trust our licensed insurance experts to listen to you and understand your needs. 

As we celebrate Pride Season, it's important to remember that inclusivity and diversity extend to all aspects of life, including car insurance. 

If you’re shopping for auto insurance and would like a quote, reach out to an Orbit broker at 877-976-7248. If you’re an Orbit customer and you have questions about your insurance coverage, call 877-976-7248 to review your policy or learn more about your coverage options.

1. Insurance Business Magazine
2. Canadian Underwriter