My car insurance suddenly increased by $2,000 but I didn’t add a new vehicle – ‘frustrating’ loophole targeted drivers

A DRIVER has been hit with an increased car insurance rate after she claims her provider added people to her policy unexpectedly.

Jennifer Berg was confused when she got a $2,000 increase in her auto insurance as she said she initially had no clue why it happened.

WHIO

WHIO

WHIO

She learned that insurance companies have a practice that includes adding children and household members to a parent’s policy.

Children can be slapped onto their parents’ car insurance policy even if they don’t drive and, in Berg’s case, also if they don’t live in the same home, local Cox Media Group affiliate WHIO reported.

Many vehicle owners run into unexpectedly higher premiums than they agreed to when it’s time to pay the insurance bill which is why drivers are urged to check their insurance premiums before paying.

Berg acknowledged that auto insurance can be pricey but said the amount she was charged was outrageous.

She said her car insurance price jumped “over $2,000.”

“It’s frustrating,” Berg admitted.

Her premium increased that much because of her two boys.

The driver has a 21-year-old and a 17-year-old, both of whom were added to her policy.

But there was an issue beyond her insurance provider making the change without her knowledge.

The 21-year-old “doesn’t live here,” Berg shared.

“And the other one is 17, does not have a permit, doesn’t want to take driver’s ed, doesn’t want to get a driver’s license until he doesn’t have to take driver’s ED.”

But there’s a policy in insurance contracts allowing companies to add someone’s children to their policy without knowing if they have a license or drive.

“That’s the default in your contract. It’s actually in the contract. I didn’t know that until I started reading my insurance contract,” Deputy Commissioner for the Officer of the Insurance Commissioner Michael Marchand told WHIO.

“The way the policy is written, it stipulates that it is inclusive of anyone who is driver-age in the household. It doesn’t mean that they actually have a license.”

How to lower auto insurance costs

The best way to keep car insurance rates low with any provider is by having a good driving record.

• Compare insurance costs while car shopping.
  • Look into insurance costs before buying a new or used vehicle.
  • Car insurance premiums are based in part on an automobile’s price.
  • The cost of insurance is also determined by the cost to repair a car, its overall safety record and even the likelihood of theft.
• Combine auto and homeowners insurance.
  • Lots of insurance providers give consumers a break when they buy two or more types of insurance.
  • Insurance companies also could offer a reduction if a driver has more than one vehicle insured with the same company.
• Maintain a good credit record.
  • Building a good credit history can cut insurance costs greatly.
  • Most insurance providers use credit information to price policies.
  • Research also shows that car owners who effectively manage their credit have fewer claims.

SOURCE: Insurance Information Institute

He said that a child would be added just because “they have the ability to drive.”

“Regardless of the policy,” he added.

“It’s just based on their age.”

Berg’s insurance provider, Progressive, told WHIO that the mom should “contact us directly” to “any changes to her policy or to address any questions or concerns” but she said she tried.

“No,” she slammed.

“No, he refused to take them off. So, I was made to contact you. You posted on Facebook to get advice and feedback.”

Her documents showed that Progressive had technically notified her that her sons were added to her policy but there was a major issue with the notification.

The letter sent to inform her about the change to her policy had the same date as the bill.

Marchand stressed that she should’ve gotten that notification “with a little more lead time.”

“Any consumer should be getting that with more lead time,” he added.

Progressive did not immediately respond to The U.S. Sun’s request for comment.