When shopping for insurance resembles a car wreck
Is it fair to discriminate against a policyholder on the basis of something that happened nearly 20 years ago?
Insurers typically ask you how many accidents you have had in the past three years when vetting you for cover, yet the question relating to the cancellation of a policy is not time-bound: you are asked if an insurer has "ever" cancelled your cover. A Cape Town policyholder, who asked not to be named, had a policy cancelled 19 years ago. She discloses this every time she goes through the underwriting process, and pays dearly for it: "Compared with friends with a similar risk profile, I've always paid a much higher premium." Last week, Ms A decided to get a quote from OUTsurance. In terms of the "cheaper car insurance or R400 cash" promotion, OUTsurance promises that if it can't save you money on your car insurance premium - in other words, beat your premium - it will give you R400 cash. "I reckoned that I'd be better off either way," she says. But she was in for a rude shock: on hearing that a policy of hers had been cancelled, OUTsurance classified her as "uninsurable". "I was horri...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.