Less Risk -> Higher Premiums?

polymaff

Have I got this wrong?

My wife had her licence revoked after serious brain surgery last year. I didn't let my insurer know as I didn't think that it would alter my "driver and spouse" policy. On receiving my invitation to renew, I thought that I would tell them about it - expecting that going "driver only" would reduce the premium. Quite the opposite, they say!

Have the insurers got the wrong end of the stick? I can't see how taking one driver off the policy should make it cost more. Can't say how much more, by the way, as the insurer's agent couldn't get the system to generate the new quote - didn't recognise my no-claims record, even though it was clearly stated on the received renewal letter.

agrinnall

It's quite common that a man adding a woman (wife/mother/sister) to his policy sees a reduction in premiums, so having taken a woman off your policy it's not too surprising the premium has gone up. No doubt there will be actuarial calculations showing that having a woman on the policy reduces the likelihood of a claim.

Mobeer

Your wife was considered by the insurer to be a lower risk driver than you. Removing her means all the expected mileage will be done by you, increasing the insurer's perceived risk, leading to the increased premium.