Insurance Policies and stability clause

Camper6

Well-known member
Joined
Jan 29, 2017
Location
Northwestern Ontario Canada
I received my insurance policy in the mail and for the first time in a long time I read the whole thing through.

I had some corrections. One was on the type of heat in my apartment.

The other was correcting the marital status from M to S. I am widowed.

When I phoned the changes in I was told that there would be no change for the heat type but because I went from M to S that there would be an extra charge of $34 a year. I inquired why. I was told because married are considered 'more stable' than single.

I said to her. I am going to take it to court. There's no way married people can be considered more stable than single. At least not in my city.

Any comments other than I should have kept my mouth shut?
 

Camper6

Well-known member
Joined
Jan 29, 2017
Location
Northwestern Ontario Canada
Original Poster
What kind of insurance? That seems weird.
House and car insurance.

They haven't heard the end of this.

i will be writing a letter to their head office.

Im betting all those who are single but got married never got their insurance reduced.

It is weird as are all insurance policies.
 

Pauline1954

Member
Joined
Mar 15, 2019
Im new here and just happened to come across this post of yours.

It sure sounds like discrimination. Frankly, this may be a case for an attorney if you so desire to find out. But then you have to live in your home. Im sorry you are being treated like this. Best of luck. Let us know what happens.
 

Aunt Bea

Well-known member
Joined
Aug 29, 2016
Location
Near Mount Pilot
I think that it has been that way since cars were invented.

Marriage seems to add some stability in a person's life and that translates into fewer accidents.

 

Don M.

Well-known member
Joined
Nov 3, 2014
Location
central Missouri
I can see some logic behind insurance companies charging more for Singles...especially Men and Auto Insurance. It's somewhat likely that men living alone would be more prone to depression and substance/alcohol abuse...which would translate into a higher risk when they are driving. I know I miss my wife when we are apart for any length of time, and if I ever lost her, it would be a real challenge to remain "sane".
 

Camper6

Well-known member
Joined
Jan 29, 2017
Location
Northwestern Ontario Canada
Original Poster
I can see some logic behind insurance companies charging more for Singles...especially Men and Auto Insurance. It's somewhat likely that men living alone would be more prone to depression and substance/alcohol abuse...which would translate into a higher risk when they are driving. I know I miss my wife when we are apart for any length of time, and if I ever lost her, it would be a real challenge to remain "sane".
I think there should be some distinction.

There should be single married and widowed.

Widowed are the most experienced and stable persons on the planet. They have seen it all.
 

Keesha

Playful Scamp
Joined
Mar 28, 2018
Location
Canada
I think that it has been that way since cars were invented.

Marriage seems to add some stability in a person's life and that translates into fewer accidents.


:lofl: My husband often tells me I make a horrible passenger at times
 

Camper6

Well-known member
Joined
Jan 29, 2017
Location
Northwestern Ontario Canada
Original Poster
A good passenger keeps his seat back so that the driver can see the road and he keeps his mouth shut and lets the driver drive. Unless he is asks he doesn't give any instructions.

There are two types of drivers. The quick and the dead.

Question. Does he live on Neebing Avenue.? Yes. But don't tell him how to get there unless he asks.
 

wvnewbie

Active member
Joined
Mar 20, 2018
Location
WV
Actuarial science. Insurance is based upon statistical risk. No offense... But, all the others in your "group" make you a risk too.
 

Camper6

Well-known member
Joined
Jan 29, 2017
Location
Northwestern Ontario Canada
Original Poster
Actuarial science. Insurance is based upon statistical risk. No offense... But, all the others in your "group" make you a risk too.
But they only use two criteria. Married or Single. They don't use widowed or divorced. You could be married 50 years without an accident and when your wife dies you are suddenly a risk because you are in the singles group?

The insurance company is going to hear about it. Insurance companies try to squeeze every cent they can out of you.
 

Camper6

Well-known member
Joined
Jan 29, 2017
Location
Northwestern Ontario Canada
Original Poster
I can see some logic behind insurance companies charging more for Singles...especially Men and Auto Insurance. It's somewhat likely that men living alone would be more prone to depression and substance/alcohol abuse...which would translate into a higher risk when they are driving. I know I miss my wife when we are apart for any length of time, and if I ever lost her, it would be a real challenge to remain "sane".
All kinds of people get divorces, so how 'stable' were they during the marriage? This is their claim.
Married people are more stable.
 

GreenSky

Member
Joined
Oct 26, 2016
Location
Las Vegas
Would it be better if the insurance companies gave a discount for two or more people in the household? Many companies do this for Medicare supplements and it's all based upon statistics.

They don't charge single people more because they're single. They just don't receive a discount. Statistics are all that matter. Period. It's not a conspiracy.

Rick
 

WhatInThe

Well-known member
Joined
Dec 29, 2013
Insurance is a bet. Insurance companies are the house. The customer is betting they will have to collect or use their policy. The company is betting they won't but hedges the bet to ensure profit no matter what happens.

Data is as only good as the source and analysts.
 

GreenSky

Member
Joined
Oct 26, 2016
Location
Las Vegas
Let me sell you some life insurance. There is no bet. The company will pay. And isn't life a bet? We try to take more value from anything we do compared to the cost. If insurance companies don't make a profit they cease to exist. All business stops as no individual (small) company can take the risk of liability and property loss. I have homeowners insurance, not because I am required, but because I can better afford $500 a year than $300,000 to build a new house. It's a damn good thing the company makes enough of a profit to do this for me.

Unfortunately, individuals have lost the point of insurance. It's not to cover a $60 office visit. It's to cover more catastrophic losses. This is just one of the huge failures of Obamacare.

There are companies I don't trust. I don't trust Allstate as their MOI to not pay pay claims. Mutual of Omaha keeps opening and closing Medicare companies and have huge rate increases. But at least in my case I try very hard to keep my clients with companies that don't rip them off.

In case you are wondering, "The insurance industry's net margin in 2017 ranged between 3 and 10.5%. Life insurance had the widest range between quarters, from 3% to 9.6%; property and casualty insurance were at 3% to 8%; and health insurance had the narrowest range of 4% to 5.25%. https://www.investopedia.com/ask/answers/052515/what-usual-profit-margin-company-insurance-sector.asp.

So please explain why a business shouldn't make 5%? Nobody says doctors and hospitals make too much when they need life saving surgery and certainly nobody complains when the insurance company pays $100,000 on their behalf.

Rick
 

Camper6

Well-known member
Joined
Jan 29, 2017
Location
Northwestern Ontario Canada
Original Poster
We have lost the original post.

I am now paying 34 dollars a year more because my wife died and the insurance company claims because singles are less stable.
 

WhatInThe

Well-known member
Joined
Dec 29, 2013
If they want to use variables like 'single' then every other conceivable variable should used to calculate a reduction as well. It should be a two way street. Single like any other variable should be used and placed in it's proper context. Including age. Older drivers might have accidents but do they speed, run red lights etc. At what age do seniors see an up tick in traffic citations All this should be used in it's proper context but even then it's collected statistics only, not reality. This is why insurance especially if mandated should be straight forward and simple.

The house wants it money and get it anyway possible.
 

GreenSky

Member
Joined
Oct 26, 2016
Location
Las Vegas
Charging more or less for marital status is not arbitrary. The cost is always backed by statistics and the law of large numbers. Nobody gets picked on because of who they are.

Rick
 

Camper6

Well-known member
Joined
Jan 29, 2017
Location
Northwestern Ontario Canada
Original Poster
Charging more or less for marital status is not arbitrary. The cost is always backed by statistics and the law of large numbers. Nobody gets picked on because of who they are.

Rick
I'm going to fight to get it reduced and I'm going to win after being married for more than fifty years , I'm suddenly a risk?
 

GreenSky

Member
Joined
Oct 26, 2016
Location
Las Vegas
Do you believe that singles are less stable than married especially with divorce statistics? I don't.
It's not what I think, it's what statistics show. I'm not defending anything but just pointing out everything boils down to the law of large numbers. There must be a reason rates for singles would be higher than those for married people. I know with Medicare people who do not live alone tend to be healthier. I'm not sure how that translates to auto insurance but I suspect it does.

I did a bit of research and found this little "gem" in a post: "a 2004 study found that unmarried people are twice as likely to have accidents that cause bodily harm than non-married people, even when taking age, sex, alcohol intake, driving exposure, the area of residence, body mass index, and occupational status into account." https://www.thebalance.com/car-insurance-rates-for-married-vs-single-4174286

Anyway, it would bother me if I got a rate increase if I became widowed. But it's all based upon actuarial tables. Singles in general are higher risks than married. Sorry.

Rick
 


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