My car insurance suddenly increased by $2,000 even though I didn’t add a new vehicle – a ‘frustrating’ legal loophole targeted drivers
A driver had to increase her car insurance premium after she said her insurer unexpectedly added additional people to her policy.
Jennifer Berg was confused when her car insurance was increased by $2,000 because she initially had no idea why it had happened.
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She learned that it is common practice for insurance companies to include children and household members on the parents’ policy.
Children can be included on their parents’ car insurance even if they don’t drive and, in Berg’s case, even if they don’t live in the same household, local Cox Media Group partner WHIO reported.
Many vehicle owners find themselves faced with unexpectedly higher premiums than agreed when paying their insurance bill. Therefore, drivers are strongly advised to check their insurance premiums before paying.
While Berg acknowledged that car insurance can be expensive, she said the amount she was charged was outrageous.
She said her car insurance costs had increased by “over $2,000.”
“It’s frustrating,” Berg admitted.
Because of her two sons, her bonus was increased accordingly.
The driver has a 21-year-old and a 17-year-old son, both of whom are included in her policy.
However, there was another problem beyond the fact that her insurance provider had made the change without her knowledge.
The 21-year-old “doesn’t live here,” Berg said.
“And the other one is 17, doesn’t have a driver’s license, doesn’t want to go to driving school, doesn’t want to get a driver’s license until he doesn’t have to go to driving school anymore.”
However, there is a clause in insurance contracts that allows companies to include a person’s children in their policy without them knowing whether they have a driver’s license or drive a car.
“That’s the default setting in your contract. It’s actually in the contract. I didn’t know that until I started reading my insurance contract,” Deputy Insurance Commissioner Michael Marchand told WHIO.
“The policy is worded to include all people in the household who are of driving age. This does not mean that these people actually have a driving license.”
How to reduce car insurance costs
The best way to keep car insurance premiums low with any provider is to drive well.
- Compare insurance costs when buying a car.
- Before purchasing a new or used car, find out about insurance costs.
- Car insurance premiums depend partly on the price of the car.
- The cost of insurance also depends on the cost of repairing the car, its overall safety record, and even the likelihood of theft.
- Combine car and property insurance.
- Many insurers offer their customers a discount if they take out two or more insurance policies.
- Insurance companies may also offer a discount if a driver has more than one vehicle insured with the same company.
- Maintain a good credit score.
- Building a good credit history can significantly reduce insurance costs.
- Most insurance providers use credit information to price their policies.
- Studies also show that car owners who manage their loans effectively have fewer claims.
SOURCE: Insurance Information Institute
He said a child would only be accepted because he or she “has the ability to drive a car.”
“Regardless of politics,” he added.
“It just depends on their age.”
Berg’s insurance provider, Progressive, told WHIO that the mother should “contact us directly to make changes to her policy or address any questions or concerns,” but she said she tried.
“No,” she replied sharply.
“No, he refused to take them off. So I had to contact you. You posted on Facebook for advice and feedback.”
Their documents revealed that while Progressive had technically notified them that their sons were being added to their policy, there was a major problem with the notification.
The letter informing her of the change in her policy was dated the same as the invoice.
Marchand stressed that she should have received this notification “with a little more lead time.”
“Every consumer should get this with more lead time,” he added.
Progressive did not immediately respond to US Sun’s request for comment.
