Reports that non-binary drivers may receive lower comprehensive car insurance premiums than male or female motorists are prompting discussion among insurance professionals about how gender is used as a rating factor in Australia, at a time when overall motor premiums are increasing.
According to News.com.au, the issue came to light after a male driver phoned Sydney radio station 2GB to describe how his online comprehensive car insurance quote changed when he selected a non-binary option. The caller, identified as Ben, said he was completing a quote when he noticed an additional gender option and decided to see how it would affect the premium. “I found the box on there and thought I’m just going to give it a tick and see what it comes out with, it might be a bit of a joke. A joke is right, I was absolutely stunned with what I found … I’d like to see the evidence behind it,” Ben said.
Host Ben Fordham responded on air: “I can’t believe it.” He went on to say that “the best deal goes to the non-binary driver … just tick the non-binary box, because no-one is going to be able to disprove how you are identify, you’re going to get a better deal.”
The account has raised questions within the sector about how gender-based risk segmentation works when non-binary options are available in quoting systems, and how insurers verify information submitted at the application stage.
A separate set of test quotes for a middle-aged Sydney driver of an electric Kia EV3 showed differences in annual premiums where the only detail changed was the driver’s stated gender. For the same risk profile and cover, the annual premiums returned from NRMA Insurance were:
The results indicate that gender remains a pricing factor in many Australian motor portfolios, and that non-binary categories are now being processed within those pricing structures.
In a statement, an NRMA Insurance spokesperson said the insurer had “recently introduced a non-binary option into the comprehensive car insurance quoting process to enable non-binary customers to be represented and recognised when applying for insurance.”
The spokesperson added: “We consider a number of factors when determining the premium for car insurance, including the gender of the driver, make and model of your vehicle, and claims history. We will continue to refine our approach as we gain insight on driver behaviour to ensure policies and premiums are reflected appropriately. It’s important customers provide accurate information when purchasing insurance.”
While motor pricing has long used gender as an actuarial variable, available crash and claims statistics in Australia mostly rely on binary classifications. Research published by the University of New South Wales in 2021 found that men, across age groups, are up to twice as likely to be involved in a crash, while women are more likely to be hospitalised when injured. These differences have underpinned the use of gender in rating, particularly for younger drivers.
Professor Rebecca Ivers, head of the UNSW School of Population Health, said at the time that there is a need for broader and more detailed data in transport safety. “Because current data is generally limited to binary notions of sex, there is a critical need for more nuanced research that investigates the gendered dimensions of mobility, transport, and safety,” she said.
The Australian Road Deaths Database records fatalities as male, female or, in a small minority of cases, “unknown.” Only 32 out of almost 58,000 recorded road deaths fall into the unknown category, some dating back to 1992, indicating that non-binary or non-disclosed gender identities are rarely captured in historic records.
Comparison site Compare the Market notes that men typically pay higher car insurance premiums than women, “largely due to younger men having higher car insurance premiums than women of the same age. Young men pay more for car insurance than women of the same age as they are three times more likely to be involved in road fatalities.”
However, insurers and researchers have far less data about the risk profile of customers who identify as non-binary, making it difficult to assess or compare rating differences across three or more gender categories with the same level of statistical confidence.
Market practice remains uneven. Some Australian motor insurers have introduced non-binary or gender-neutral options in their quote forms, while others still require customers to choose male or female at application.
AAMI does not currently offer a non-binary selection in its standard online quote process, although it has indicated that it is reviewing its systems. “We’re committed to ensuring our products and services reflect the diversity of our community. We’re reviewing our system as they currently only request male and female. If you don’t identify as male or female, please select the gender you are most comfortable with and proceed with your quote. Once you have a quote or policy number handy, please give us a call so we can acknowledge your correct gender and ensure you are included in future system changes,” the insurer said, as reported by News.com.au.
The debate over non-binary pricing comes during a period of continued premium increases in the Australian motor market. According to Canstar, average comprehensive car insurance premiums rose by 5.8% between 2024 and 2025, based on an analysis of more than 67,000 quotes across different drivers and vehicles. The typical comprehensive policy increased from $2,104 to $2,226, an average rise of $122.
Age and gender continue to influence premium levels. Drivers over 50 recorded the largest proportional increase at 6.5% but still pay the lowest average comprehensive premium at around $1,260. By comparison, male drivers under 25 face average premiums of about $3,020. Drivers aged 25 to 29 pay about $2,176 on average, while those aged 30 to 49 pay around $1,607.
