So a “widow penalty” is apparently a very real thing. This article talks all about it. I know taxes will get worse in a few years as well. I wonder what else I won’t see coming.
But according to a new study by the Consumer Federation of America, a change in marital status from married to unmarried (through divorce or the death of a spouse) can cause a woman’s auto insurance premiums to rise as much as 226%—suggesting a “widow penalty” that CFA director of insurance Bob Hunter said in a press teleconference Monday with executive director Stephen Brobeck is “immoral and should be stopped at once.”
Using the stock profile of a 30-year-old female with a perfect driving record and holding all variables (from income to car model) constant except for marital status, the CFA study surveyed quotes from six auto insurance giants—State Farm, GEICO, Farmers, Progressive, Nationwide, and Liberty—across ten different U.S. cities. Of the six, State Farm was the only provider to never change its prices according to driver marital status; the remaining five routinely quoted higher prices to single—never married, divorced, or widowed—female drivers. Of those five, only Nationwide sometimes made exceptions for widows by not raising their rates. The “widow penalty” overall averaged to an approximately 14% increase.