Joe Kline of Suffield was shocked when he called his insurance agent after his wife of 52 years, Angie, died in April pulmonary fibrosis.
Kline wanted to keep two cars insured, but thought his insurance would go down with one less driver.
Instead, it went up about $20 per half.
“That’s when I woke up,” Kline said. “I didn’t think it could be cut in half, but it doesn’t have to go up.”
That didn’t work, Kline said, as he was now half-responsible for the insurance company. Kline said he knows it’s not a lot of money, but it’s a fact that angered him. They lost the discount for several drivers.
“So I guess they think that if you don’t have your spouse in the passenger seat anymore they’re telling you to stop following or slow down which makes you a good driver, right?” he said.
Kline drives for a living and has never been in an accident in 35 years. If he was a good driver the day before his wife died, why is he a good driver the day after she died, he said?
“Just give me a good reason and I’ll be happy to pay,” Kline said.
A widow’s or widower’s penalty increases the amount of car insurance
One state agrees with Kline.
Delaware bans what its former insurance commissioner called the “widow’s penalty,” where a widow or widower is awarded a large sum of money after the death of a spouse.
In 2015, then –Delaware Insurance Commissioner Karen Weldin Stewart made the announcement they will not accept any offer of car insurance that includes the penalty.
“The so-called ‘widow penalty’ is completely unfair,” the Commissioner said in a press release at the time. “Being a single driver due to the death of your spouse is not the same as being a young, inexperienced single driver. I will not accept car insurance filters that do not provide clear information to include widows and widowers in the same top category.
“Car insurance companies are allowed to charge inexperienced drivers, such as teenagers, more because some studies show that younger drivers register more accidents than younger married drivers. Unmarried older drivers have the same behavior compared to older drivers who are married. in the family,” said the Commissioner.
The official went on to say that his department realized that being married is not the only reason money can change after losing a wife. Companies could discount many other things, or couples could be considered together when deciding the price.
“When a spouse dies, the premium will change to reflect the risk of the remaining driver. If the driver has a better driving record than his or her spouse, the premium may be lower.
The ban later became Delaware state law when Delaware Insurance Commissioner Trinidad Navarro worked with lawmakers, a spokeswoman for Navarro’s office told me in an email.
I checked with several federal and state sources, and it is unclear if other states prohibit the practice like Delaware. Many sources had never heard of the ban.
In Ohio, there is no such restriction, according to the Ohio Department of Insurance.
Spokesman Robert Denhard said every situation is different and encouraged consumers who have questions about their policies or any issues to contact the state agency.
“Each insurance is unique and different factors are involved, especially when the policy is recalculated, not penalized, based on the different risks of two people to know about one person,” said Denhard.
Consumers can call 800-686-1526 or email Consurance.complaint@insurance.ohio.gov with concerns.
Shop around with any insurance policy changes
Several industry sources, including Scott Holeman, director of media relations for the New York-based Insurance Information Institute, said they had never heard of the “widow’s penalty,” but encouraged couples to shop around to get competitive rates.
“Because insurance is a very competitive industry, Triple-I encourages consumers to always check rates with at least three companies to see if they are worth the savings. In other words, we always recommend shopping, “said Holeman. “In addition, consumers should keep an annual list to discuss any questions they have with their insurance professionals during the year, as needs change, especially in different lifestyle changes.”
Robert Passmore, vice president of the American Property Casualty Insurance Association, also recommended calling your insurance company to find out why the increase occurred or shop around when you see a price increase.
“Insurance figures are subject to strict actuarial rules and government regulations, which ensure that all the disclosures accurately reflect the risk of loss,” he said.
But Passmore said auto insurers “have been collecting data for years, and over the years they’ve found that things like marriage have proven to be very accurate predictors of the likelihood and risk of insurance.”
Passmore suggests looking at new things like “useful insurance, especially if you’re driving less, in addition, take steps to avoid accidents like driving while distracted.”
Kline ended up staying with the same insurance company, but her agent found another program to lower her premiums. Kline still thinks the practice is unfair, but said he was convinced by the company to stay. She wouldn’t have gotten the low-cost savings if she hadn’t pushed back, however, and encouraged other widows and widowers to look into savings.
Kline still says that the “widow’s penalty” or change when someone is removed from the policy is not understood.
“What is the difference between death and divorce?” This is something that affects many people. ”
Beacon Journal staff reporter Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com. Follow her @blinfisherABJ on Twitter or www.facebook.com/BettyLinFisherABJ. To see her latest articles, visit www.tinyurl.com/bettylinfisher
