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Redditor Changes Gender, Saves More Than $1,000 on Car Insurance

Gender bias in auto insurance is real, and it's men who have the disadvantage.

Men typically have higher auto insurance premiums than women. One Alberta, Canada resident posted on Reddit that as a man in his early 20s with an imperfect but not awful driving record, car insurance for the year cost $4,517. On a whim, the Redditer asked how much it would cost for a woman. The answer: $3,423, a savings of $1,095. So this person transitioned from a man to a woman.

She didn’t do it just for the insurance savings, she hastens to add, though it was on the list of reasons. 

“I must say (for anyone who tries to report me) that I didn’t legally change my sex solely for cheaper auto insurance, though, that was and is a big factor for me and other people who suffer from gender dysphoria.”

According to eSurance, there are three main reasons why women typically pay less for car insurance than men: less speeding, less driving under the influence, and fewer accidents. These are gross generalizations, of course. As a man, I’m not perfect, but I’ve had few speeding tickets, fewer accidents, and no DUIs in my life. I also know both men and women with driving records a mile long. But generalizations are how insurance companies do their business and set their rates. While not accurate in all individual cases, overall it helps keep them in business and makes a profit.

In this Redditor’s case, it proved fairly simple for her to transition from legally being a man to a woman. She needed to follow the paper trail back to her birth certificate. To change her sex on that, she had to sign and notarize an affidavit stating that her gender did not match her body, and a letter from a doctor stating the same. Once the birth certificate was changed, she had her driver’s license switched to female, and saved $1,095 on her car insurance.

Changing genders is not something to be taken lightly, including for car insurance. It is quite literally a life-changing experience, as I’ve seen through the eyes of my friends who have transitioned. I asked one of my transgender friends if his rates had gone up when his driver’s license switched from “F” to “M,” and he told me he hadn’t even noticed. That’s just about how low of a priority car insurance should be on the list of reasons to transition.