Marital Status and Other Common Factors That Can Lower Your Car Insurance Premium

There’s nothing wrong with being single. You have all the time in the world, you can spend your money on the things you want, you don’t have to worry about missing your significant other’s text or call, and you can focus on your passion — it’s your choice after all. However, being married has lots of advantages, too — like cheaper car insurance.

This might sound weird and totally irrelevant but insurance providers oftentimes view your marital status as a factor when computing your monthly premium. Ironically, car insurance is one of the few things that come cheap after you’ve tied the knot.

It might sound confusing at first when we think about how marriage plays a role in paying less and to be honest, the explanation is quite shocking. Consumer group Which? investigated just how ridiculous companies are when they analyze data of consumers.

Eyebrow-Raising Results

It shows that the insurers’ assumptions based on the questions asked during the application process can greatly affect drivers’ premiums.

Which? laid out an example wherein a motorist was wrongly slapped with an extra $240 just because an insurer presumed the driver was filing for a vehicular claim.

Those with a dashcam are entitled to a 15-percent discount

Specifically, the group bared that those who opt comparison sites to get car insurance would be provided with the same set of questions rather than a unique one.

Of course, this would lead to the same prices for two persons with different circumstances but only had the same answers on the general questionnaire.

One of which was about the dashcam – other insurance providers would give a 15-percent discount for those who own one, but only one in four major sites offered the drivers the chance to say whether they have the camera or not.

Driving incidents should also be reported, a compulsory declaration, but not all sites will make you specify, so the insurers can make erroneous assumptions again.

A driver’s job title affects the premiums

Other Factors

Going back to the more concerning matters, the investigation showed that other unrelated customer information like job title, home-ownership, and marital status have an effect on the premium rates.

Which?, for example, found that a London driver who is also a homeowner, has a 4-percent cheaper quote. Those who were married also have a 4-percent lower rate than their unmarried or divorced counterparts.

That’s not all, drivers’ premiums are based on how they describe their job title. For instance, one who describes his work as a painter has the lowest insurance of $460, while if changed to artist, the quote will drop to $424.

Logic Behind Marital Status

Car insurance companies might have thought that married drivers are more careful than unmarried counterparts

It is quite unclear how being married affects the premiums but if you take into account a 2004 study, then it does make sense. The research found that unmarried people are twice as likely to get into accidents than those who have a husband or wife.

It may feel unfair but if you think about it, it is quite logical. After all, insurers are still businesses and with risk and profits in their minds, they would assume that those who have tied the knot tend to be careful in driving and may have a lesser chance of having accidents.