Canadian man legally changes gender for cheaper auto insurance premiums

Budgeting Smart for Your Next Car

A motorist fed up with paying more because he was male has found a loophole in a new law in Canada.

A driver in Canada seeking cheaper auto insurance rates legally changed his gender from male to female in order to dupe the system.

Gender-based car insurance premium calculations charge male drivers far more than females.

The man wasn’t just chasing slightly cheaper auto insurance rates. In fact, he discovered that by changing his gender from male to female, he would save almost $1,100 (CAD) per year. The man, whose name was identified only as “David” in the CBC News report on the story, said he had been quoted an astronomical insurance rate for the Chevrolet Cruze he wanted to purchase. The rate he was quoted was about $4,500. That said, as a woman, that quote was $1,100 cheaper.

In Canada, men under the age of 25 years typically pay higher rates than women in the same age group because car insurance companies have determined that male drivers at that age have a greater risk of being involved in traffic accidents. Moreover the traffic accidents in which young male drivers are involved tend to be more severe – and, therefore, more expensive – than those of their female counterparts.

The man requested a gender change by the insurers in order to receive cheaper auto insurance.

“I was pretty angry about that and I didn’t feel like getting screwed over any more,” explained David. He explained that he attempted to have the insurance companies change his gender on the policy, but his request was refused.

David became determined to “beat the system.” He decided to legally change his gender on his birth certificate. He explained that “It was pretty simple,” to accomplish. He required a note from his doctor, stating that David identified as a woman, and then he was permitted to proceed with the change.

“I just basically asked for it and told them that I identify as a woman, or I’d like to identify as a woman, and he wrote Cheaper auto insurance - Man holding car keysme the letter I wanted,” he said. Once he submitted the required documentation, it was a matter of weeks before his request was officially granted. He then sent insurance companies proof that he was legally female.

After that point, he was granted cheaper auto insurance quotes. “I was quite shocked, but I was also relieved,” he said in the CBC report. “I felt like I beat the system. I felt like I won.”

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