Why Premiums Go Up After Death of a Spouse

The death of a spouse is often a difficult experience. (yourlovetips.com)

Did you know that three out of four women outlive their spouse? That the average age women become widows is just 56 years old? And more than half of all women in the United States are widowed by the time they reach the age of 65?

We’ve spent a lot of time with the differences between men and women in regards to auto policies. Women are not only more likely to lose their spouse, but they’re also more likely to be severely injured in car crashes.

And some even say women are worse drivers than men, although we’ve seen no study that can prove that specious claim.

Women do seem to have advantages on the average, though. They live longer and they pay less for their car insurance coverage. But not every spouse that suffers the loss of their partner is female. Plenty of men find themselves coping with the grief over losing their wives.

We recently had a reader ask a very interesting question. He wanted to know why GEICO had started charging him more for car insurance since his wife had died. So let’s get into why such a situation might happen.

It isn’t Heartlessness on the Insurer’s Part

On the surface, we’ve got to say this situation can appear to be a heartless move by a car insurance company. A bereaved spouse is already dealing with mourning, so getting a bigger car insurance bill seems like pouring salt into a deep, open wound.

But it’s more apt to say it’s simply the way an insurer chooses to do business. After this particular policyholder’s wife died, the insurance company considered them to have gone from being married to being single.

The insurer in question offers policy discounts for married couples, and once the status of the driver changed, they lost the discount they had been getting for being married. It isn’t anything particular against the policyholder, it’s simply the way the insurer has chosen to do business.

Car insurance companies normally consider any life changing event, from a new job to the birth of a child, as rating factors. Marriage is perhaps one of the most significant, as those who are in committed relationships have proven to be less risky to insurer.

And while the general rule of thumb is that married drivers have proven to be safer than single ones, and therefore normally obtain discounts for being married, there are times when this can prove to be anything but true.

For drivers that marry someone who has had multiple moving violations or infractions, multiple wrecks, or other factors that define the spouse as a high-risk, it isn’t uncommon for them to see substantial car insurance policy price increases.

Not All Insurers Are the Same

For the widower in question, we’d suggest that they take a look around at what other car insurance companies offer. Some other companies, particularly preferred market companies, will offer a “widowed” option that offers discounts to individuals who have lost their spouse.

And for those involved in domestic partnerships, we’d also point out that there are plenty of auto insurance choices that offer domestic partnership discounts.

Like marriage, the general rule of thumb is that those involved in domestic partnerships are considered safer drivers than single people. This extends to traditional and same sex domestic partnerships. And also like marriage, entering into a domestic partnership should be considered a major life change that calls for a review of your auto policies.

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