In an article in the Sunday Times (March 2016), Megan Power wrote that her colleague, a divorcee named Sutherntira Kaissri, pays more for her car insurance than a married woman.
After investigating her claims history she discovered that her unmarried status counted against her because single people are at a greater risk for insurers and therefor attract higher payments.
Insurance discrimination?
“This is apparently because married people, in contrast, are more likely to stay at home, especially on week nights and at weekends, and are less likely to drive late at night. And couples may have two cars, using only one of those, especially at weekends, thus reducing risk,” said Power.
It was also mentioned that most insurers consider divorced policyholders as single.
“It’s not something my colleague Suthentira Kaissri had bargained on when she updated her banking and personal details with OUTsurance two weeks ago. The 40-year-old Durban journalist was stunned to be told that due to her fairly new divorced status, her monthly car insurance premium was being hiked by as much as R280.”
After disputing the issue with her insurance company, Kaissri’s premium was reduced by only R28.
A spokeswoman for OUTsurance said that according to data, single people have more car claims than married people, as do young drivers who are likely to claim for more accident damage than older drivers. However, she noted there are also exceptions.
1st for Women Insurance’s take
Women on Wheels chatted to Robyn Farrell, Executive Head of 1st for Women Insurance. She stated that although certain factors do affect a single person’s premiums, the difference between married and single women is minimal.
"Numerous factors are taken into account to determine what insurance premium you will pay. For example, the make and model of your motor vehicle, where you live, where your vehicle is kept at night, who the driver of the vehicle is, what purpose your vehicle is used for, your previous claims history, your age, the amount of time you have had your driver’s licence and your marital status. The reasons insurers take these factors into account is to determine your risk profile,” said Farrell.
So where do single people fit in?
“With regards to marital status – statistically, single people are higher risks than married people. This could be because single people tend to go out more than those who are married. With this in mind, their vehicle is more at risk of theft or an accident and their home is left empty more often so is at risk of a burglary. That said, the difference in premium for married women versus single women is minimal," Farrell concluded.
