Why Your Car Insurance Went Up After Becoming Widowed

Exception: State Farm

According to current reporting, State Farm is the only major insurance company that does not consider marital status when setting auto insurance premiums. This means that, unlike other insurers, State Farm does not penalize widowed drivers by raising their rates simply because of their change in marital status.

"At the time of this writing, State Farm is the ONLY insurance company that does not consider marital status when setting premiums. So, your options are: Say buh-bye to your current car insurance carrier. Switch to State Farm

When a spouse passes away and you update your car insurance to reflect your new status—especially if you also remove a car from your policy—it’s common to see your premiums increase. This is due to several industry practices and statistical assumptions used by insurance companies.

Key Reasons for the Increase:

Loss of Marital Discount: Insurance companies typically charge lower rates to married drivers because, statistically, they are considered lower risk. When you become widowed, your status changes to single or widowed, and insurers often view this as a higher risk category, leading to higher premiums2 47.
Loss of Multi-Car or Multi-Policy Discounts: Many insurers offer discounts for having multiple cars or bundling home and auto insurance. Selling one car means you lose the multi-car discount, which can increase the cost of insuring your remaining vehicle3 78.
Change in Risk Profile: If your spouse had a better driving record or higher credit score, removing them from the policy can also affect your rate. The insurer now bases the premium solely on your record and risk factors68.
Algorithmic Pricing: Insurers use complex algorithms that factor in marital status, number of drivers, and vehicles on the policy. Removing a car or a driver can shift your risk profile in ways that increase your premium37.

The "Widow Penalty"

This phenomenon is sometimes referred to as the "widow penalty." On average, widowed drivers pay about 14% more than when they were married, though in some cases the increase can be much higher2 47. The insurance industry justifies this by claiming that unmarried drivers (including widows and widowers) are statistically more likely to file claims or be involved in accidents27.

What You Can Do

Shop Around: Not all insurance companies penalize widowed drivers equally. For example, State Farm is noted as one major insurer that does not use marital status to set premiums7.
Ask About Senior and Low-Mileage Discounts: As a senior, you may qualify for discounts based on age, safe driving, or driving fewer miles. Defensive driving courses can also lower your premium56.
Review Your Coverage: Make sure your policy reflects your current needs. Removing unnecessary coverage or bundling with other policies can sometimes reduce costs56.
Contact Your Agent: Some agents can help ensure you are classified as "widowed" rather than "single," which may result in a smaller rate increase8.

Legislative Changes

There is growing recognition that this practice is unfair. For example, Texas lawmakers are considering a bill to block insurers from raising rates solely because someone becomes widowed, a move that could set a precedent for other states1.

Summary Table: Factors Affecting Your Insurance Rate After Loss of a Spouse

Factor	Effect on Premium
Change from married to widowed	Usually increases
Removal of a car (multi-car loss)	Usually increases
Loss of multi-policy discounts	Usually increases
Change in risk profile	Can increase or decrease
State laws (varies)	May offer future protection

If your rate went up after your wife passed and after selling a car, you are unfortunately experiencing a common and widely criticized insurance industry practice. You may be able to lower your premium by shopping around, asking for senior or low-mileage discounts, and reviewing your coverage. Legislative changes may help in the future, but for now, being proactive with your insurer is your best option1 5 67.

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