In defining genre in my query letter, would it make any sense to refer to the work as 'character-driven'. If it wouldn't count against me, I'd prefer to do that rather than call it 'literary fiction' as I feel that would imply a value judgement which I'd prefer to leave to others. The only other possible category I can see that might fit would be offbeat/quirky, but I feel its aspect of 'character-driven'-ness is more important - and thus more representative as a term, and I don't see how 'literary fiction' would be any more informative to the reader of the query. I suppose I could say 'offbeat, character-driven'.
Literary fiction is used to describe where something is shelved in a bookstore. You may describe your book as character driven as soon as you send me a .jpg of a section called 'character driven' in a bookstore. Any bookstore. Anywhere.
There's no way you can persuade me something is character driven in a query letter and three pages. It cannot be done.
Don't worry about telling me what it is beyond where it would be found in a bookstore. People who say "it's romance AND true crime" are nitwits. The only thing worse is "true crime AND pet care". KY is having palpitations just hearing me spell check that.
Write well. Call it a novel.