Passage of New Bill Closes “Widow Penalty” Insurance Loophole in Texas

AUSTIN, Texas — Senate Bill 1238 was signed into law by Governor Greg Abbott on May 20, closing a loophole that allows home and car insurance companies to charge widows and widowers in Texas higher rates. Many Texas widows and widowers have seen insurance rates increase after the passing of a spouse, as insurance companies reclassified them as single instead of married, which often carries higher charges. The new law, which prohibits increases in insurance premiums based solely on the change in marital status for widows and widowers, goes into effect Sept. 1, 2025.

“As I grieved the loss of my husband, the last thing I expected was a sudden spike in my insurance bill,” said Pam Kuchta of East Texas. “This legislation will help other women like me, who are experiencing one of the most difficult times of their lives, to focus on the things that really matter, rather than worry about how they’re going to afford their insurance.”

With over 1.1 million widows and widowers in Texas, 76% of whom are women, the financial impacts of this bill are far-reaching. Even people with perfect credit ratings and driving records have been subjected to this “widow penalty,” seeing average surcharges of 12% to 20% after the death of a spouse.

“You can imagine my shock when I called my auto insurance company to remove my husband from the policy, and learned that my rates would actually increase by $280 per year as a direct result of his death,” said Evelyn Delgado of Central Texas. “Nothing changed about me or my property, except that I lost my husband. Nothing else changed.”

“Current state law prohibits discrimination based on marital status, but insurance companies have been skirting around it, charging widows more for the same coverage they’ve had all along,” said Ann Baddour, director of Texas Appleseed’s Fair Financial Services Project. “SB 1238 will help widows move forward without the added financial burden of higher insurance premiums. We are so thankful to Sen. Lois Kolkhorst, Rep. Ana Hernandez, and Rep. Matt Morgan for their leadership in passing SB 1238, as well as the many other legislators and partners who supported the bill.”

With the passage of SB 1238, Texas joins Delaware, Maryland, Massachusetts, Michigan, Pennsylvania, and Rhode Island in prohibiting insurance companies from charging a widow penalty. 

If you are a widow or a widower and your insurance company currently categorizes you as “single” or as a designation other than “married” for setting the price of your policy, they must change your status to “married” beginning Sept. 1, 2025. This change should lead to lower premiums. If it does not, we urge you to submit a complaint to the Texas Department of Insurance.

Texas Appleseed advocated for the law after doing research into the issue and hearing from widows who were impacted. 

About Texas Appleseed
As one of the most trusted resources for data-driven policy analysis and solutions, Texas Appleseed advocates at the state and local level for fair, just, and equitable laws. Our work has shaped hundreds of laws and positively affected millions of Texans by breaking down barriers through transformative policy solutions. Visit www.TexasAppleseed.org for more information.

###