Date Published: 2023/06/01
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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.
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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.
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.
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:
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.