Single, Divorced, or Widowed - Do Auto Insurers Charge You More?

Single, Divorced or Widowed – Do Auto Insurers Charge You More?

It comes as no surprise that auto insurance rates can vary wildly based on factors such as a driver’s sex and age, how many accidents they’ve had, the type of car being insured, where that car is located, and so on.

But, being single, divorced, or widowed?

Just because you’re single, divorced or widowed doesn’t seem like a very good reason for your auto insurance company to charge you more. Unfortunately, a new study says some auto insurers are doing just that.

Apparently, if you fall into any of these three categories, your insurance company may be using your current status against you and charging you more – a lot more. The practice, which is being labeled “unfair”, came to light in a recent study and the Consumer Federation of America is seeking action as a result of the findings.

The CFA researched how an individual’s marital status impacted pricing by most of the major auto insurers in the country, and found that four of the six largest insurance companies studied increased premiums for women whose husbands had died by an average of 20 percent.

The study involved six insurers: Geico, Farmers, Progressive, Nationwide, Liberty Mutual and State Farm. At the time of the research, Allstate was not included, due to a website redesign that made comparisons difficult. Testing was conducted in 10 cities ranging from Minneapolis to Tampa to states like California and Oregon, across various driver age groups.

At the top of the list was Geico, peaking at 29 percent, while the two insurers that varied their rates the least were

Nationwide at 3 percent and State Farm – whose rates did not vary at all based on marital status.

Farmers led the pack with an increase of 22 percent, showing the largest average hike in price for those individuals not married.

Although the study stated that age mattered little in regards to marital status, where you happen to live did. For example, in Louisville, Geico quoted a premium of $650 per year for a married individual, but if that same person was widowed, the rate would jump to $1,302 – and up to $1,864 for someone that was separated. And, while State Farm did not vary its rates whatsoever based on marital status, the total premium in Louisville was still relatively high at $1,248.

However, of all the cities tested, Oakland, California varied the least, with Geico quoting $388 annually for a married individual and a slightly higher $478 for single, separated or divorced drivers. In this case, there was no premium imposed by Geico for a widower, but Progressive and Farmers weren’t so kind – with Farmers imposing a $530 hike in price.

Regardless of your marital status, you want the best auto insurance rates available. Why not get a free auto insurance rate comparison today?

Do you feel you’ve been discriminated against by your auto insurance company because you’re single, divorced or widowed – in spite of a good driving record? Feel free to share your thoughts in the

comments section below.