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Car insurance more expensive for singles and divorcees

Car insurance more expensive for singles and divorcees

In new research conducted by consumer watchdog, Which? it was revealed that 8 out of 12 of the leading car insurance providers questioned as part of the study charge couples less for their annual car insurance premiums, compared to single or divorced people. In some cases, the difference in the cost an annual car insurance premium could be as much as a quarter, all through a change in the marital status of the policyholder. One example highlighted by Which? showed that the price of car insurance for a 27-year-old man who stated he was divorced or dissolved on his policy was 28% higher than if he had stated himself as married or cohabiting in his policy details. The difference in the cost of other policies as a result of marital status averaged around 10% higher for single people. The study also uncovered the importance of completing the questions set by the insurance company correctly as one provider was found to charge more to policyholders who ticked the box for “not disclosed” as their relationship status, compared to just ticking the box for “single”. When Which? asked the car insurance companies why they charged couples less for their policies compared to single people, the answer they received was that their premiums were based on their company research and claims history. Insurance experts say that the results of the Which? survey highlights again the importance of shopping around to ensure the lowest car insurance quote.

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