A significant loophole in car insurance pricing has been uncovered, revealing that drivers can save hundreds of pounds annually by simply selecting a 'non-binary' gender option during the quoting process. The discovery has prompted major insurers to review their systems amid concerns the practice is being exploited.
The £800 Premium Drop
The issue came to light when a 22-year-old driver named Ben shared his experience with 2GB radio host Ben Fordham. He explained that his comprehensive car insurance quote from NRMA dropped by a staggering $800 Australian dollars (approximately £420) per year when he ticked the non-binary box, compared to identifying as male.
'I found the box on there and thought I'm just going to give it a tick and see what it comes out with,' Ben said, admitting he initially thought it might be 'a bit of a joke.' He was left 'absolutely stunned' by the result. Fordham himself reacted with astonishment, stating, 'The best deal goes to the non-binary driver.'
Confirmed Trend Across Insurers
Further investigation confirmed this was not an isolated incident. Tests conducted on Monday found that for a 25-year-old driving a 2016 Hyundai i30, a comprehensive policy was about $730 (£385) cheaper for a non-binary customer than for a male driver. The quote fell from $2,300 to $1,570 annually.
The trend was not limited to NRMA. Daily Mail also confirmed that quotes from another insurance giant, Allianz, were lower for non-binary customers compared to male customers. This pricing disparity exists despite insurers historically justifying higher premiums for young male drivers based on statistical data showing they are more likely to be involved in accidents.
Industry Response and Public Outcry
On Tuesday, Fordham called on NRMA and Allianz to 'refine their approach to this issue.' He argued that insurers are effectively powerless to verify anyone's stated gender identity in the current climate. 'I'm sorry, but if you provide the loophole, you can't blame people for jumping through it,' he said.
An NRMA spokesperson stated that the non-binary option was recently introduced to ensure customers were 'represented and recognised.' They emphasised that the company considers multiple factors in determining premiums and will 'continue to refine our approach.' The spokesperson added, 'It's important customers provide accurate information when purchasing insurance.'
Other major insurers, including AAMI and GIO, currently only offer male or female options but are reviewing their systems. Their websites invite customers who do not identify as male or female to 'select the gender you are most comfortable with.'
The revelation has sparked considerable public debate. One professional driver with a 32-year flawless record called it 'a kick in the teeth,' while others labelled the situation 'insane.' The controversy highlights the complex intersection of modern gender identity policies with established actuarial practices in the insurance industry.
