Louisiana Insurance Commissioner Jim Donelon says when it comes to auto insurance rates, there’s no such thing as a so-called “widow’s penalty,” A bill has been filed for the upcoming legislative session that would prohibit a person’s auto insurance rate from going up just because their spouse dies. Donelon told the Baton Rouge Press Club that such a penalty doesn’t exist.
“It doesn’t matter if you are a teenager single woman or if you are a widow or are a divorcee, you do get a higher charge if you are single than if you are married,” said Donelon.
Alexandria Democrat Jay Luneau has introduced legislation in the Senate aiming to end the practice of raising rates on people who are widowed. Luneau also has bills that would prohibit the calculating of insurance rates based on credit score and gender over the age of 25. But Donelon opposes those measures.
“I’m against education and occupation. I am for gender if it’s actuarily proven and I am for credit,” said Donelon.
Real Reform Louisiana claims a person with a DWI and a high credit rating pays less for insurance than a person with a clean record but low credit score.
Legislation has also been filed addressing the so-called “Patriot Penalty.” Deployed military members who cancel or allow their auto insurance to lapse are forced to pay higher auto rates when they return home to renew their insurance because there was a gap in their coverage. Donelon says that’s because current law allows for insurance companies to charge a higher premium to anyone with a gap in coverage.
“That includes the military, but that also applies to everyone else who has insurance and has a gap in coverage,” said Donelon.
Luneau has filed a bill to end the practice of penalizing deployed soldiers when they return home.
