HOUSTON – The Texas legislature is close to passing a new law that would prevent widows and widowers from facing higher insurance premiums.

Some consumer advocates say insurance companies have been increasing their auto and homeowners insurance rates after their spouses have died.

Pam Kutcha’s insurance rate increase after husband’s death

The backstory:

We introduced you to former Webster resident Pam Kutcha last year, who lost her husband Jimmie, a retired Oklahoma City police officer, in 2021.

“He passed away from a very rare cancer,” she told us.

After his death, Kutcha says her homeowners insurance went up about $100 for a six-month policy.

“I have a perfect credit rating. Both of us did. Neither one of us ever had an insurance claim,” said Kutcha.

RELATED: Consumer groups say widows penalized with higher insurance rates

She says her auto insurance also went up $160 a year.

“As widows, we are not out running the streets and doing crazy things to make our rates go up. If anything, most widows and widowers are sitting in their homes for a year trying to pull it all back together again,” Kutcha said.

Stopping widow’s penalty

What they’re saying:

Consumer advocates at Texas Appleseed are working to get a law passed that would protect people from rate increases when a spouse dies. They say their research shows some Texas insurers increase auto and home insurance rates on widows and widowers, because they’re single again and considered to be higher risk than a married person.

“Another widow also reached out with the same experience. She experienced a $280 increase in her insurance costs after her spouse had passed. Again, the same situation, nothing else had changed,” said Ann Baddour with Texas Appleseed.

The Consumer Federation of America studied the issue nationwide in 2015, finding some insurers raised rates for widows 5% to 25%.

The other side:

The Insurance Council of Texas points out Texas already has a law banning discrimination in insurance pricing, and sent us a statement on SB 1238, reading:  “We support fair, data-driven pricing rooted in sound actuarial principles. Factors such as marital status, age, and gender may be used by insurers only when they are based on sound actuarial principles related to actual or anticipated loss experience. We appreciate that the legislation focuses specifically on marital status, and we’re committed to working with policymakers to protect consumers while maintaining a stable, competitive insurance market.”

But Pam Kutcha and Texas Appleseed believe a law is needed to protect the 1.2 million widows and widowers in Texas.

“Our hope is that a lot of people will see a decrease in their rates as a result of the passage of this bill.  They will no longer be categorized as single, but rather as married, and that generally puts them in a lower cost rating category,” said Baddour.

What’s next:

The bill has passed with bipartisan support in both the Senate and House, but the House made an amendment so it’s back in the Senate.

We asked Governor Abbott’s office if he would sign it. They sent a statement saying, “The Governor will continue working with the legislature to contain insurance costs and will review any proposals they send to his desk.”

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Several other states have already banned a widow penalty, including Rhode Island, Delaware, Maryland, Massachusetts, Michigan, and Pennsylvania. 

What you can do:

Consumers who believe their insurance rates have been set unfairly can file a complaint with the Texas Department of Insurance.