Motor insurers that have introduced an option for customers to identify as non-binary say pricing will be adjusted as evidence is gathered, after mainstream media questioned the logic of current discounts.

A caller to a Sydney radio station sparked the debate yesterday, pointing out Allianz and NRMA Insurance enable applicants to select non-binary as well as male or female, and that doing so accesses the cheapest price. 

The issue was quickly followed up by media outlets including the Daily Mail and Sky News – and Sky presenter Chris Kenny suggested it could be “more evidence of the madness of the woke mindset”.

insuranceNEWS.com.au checked the NRMA Insurance website and found a Toyota Camry in NSW was quoted at $2465 for a male, $2320 for a female and $2246 for a person identifying as non-binary. All other details were the same for each quote.

On the Allianz website a quote for a man was slightly more expensive than those for female and non-binary applicants, which were the same.

AAMI does not allow any selection beyond male or female, but a note on its website suggests change is coming and the insurer is “committed to ensuring our products and services reflect the diversity of our community”.

NRMA Insurance told insuranceNEWS.com.au the third option was recently introduced to help non-binary people feel “represented and recognised”. 

“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,” a spokesperson said.

“We will continue to refine our approach as we gain insight on driver behaviour to ensure policies and premiums are reflected appropriately.” 

Allianz says it “strives to be inclusive” in all its insurance offerings.

“Due to the small percentage of non-binary individuals, limited data is available to assess risk accurately,” a spokesperson said. “Therefore, we currently default to the lower-priced gender option, which is typically, but not always, female.

“Allianz will continue to refine our approach to policies and premiums to reflect updated information.”

Comparison website Finder says every insurer prices policies differently and men pay more than women for the same cover in most cases – because they tend to lodge more claims.

“Gender discrimination is allowed by the Sex Discrimination Act of 1984 for insurance where there is significant data regarding risk,” Finder’s insurance specialist Taylor Blackburn said.

“There likely isn’t enough data for different insurers to draw conclusions on a third gender, so they default to a lower rate.”

Both NRMA Insurance and Allianz stressed the importance of answering questions accurately, and Mr Blackburn outlined the potential consequences of ticking the wrong box to access cheaper prices.

“If you claim to be non-binary when you aren’t or haven’t claimed that anywhere else in any official capacity, you are committing fraud,” he said.