A bizarre insurance nightmare unfolded in Denver, Colorado, leaving a financial analyst named Ed frustrated and bewildered. Ed, a single man living alone with his four dogs, recently discovered an unexpected increase in his car insurance premium—an additional $312 every six months. The reason? His insurer, Progressive, had added an unknown driver to his policy.
The Mystery Driver
The situation began when Ed received notices from Progressive about the premium hike, which was attributed to an additional driver allegedly residing in his household. The listed driver had a 31-letter last name that Ed couldn’t even pronounce. “I have no idea who this person is,” Ed said, adding, “As far as I know, it could be somebody from another country.”
How Did This Happen?
Insurance companies often rely on third-party analytics firms to scan national databases for undisclosed or “hidden” drivers. These undisclosed drivers are individuals who might have access to a policyholder’s vehicle but are not declared on the insurance policy—a tactic some people use to save money.
Bruce, an insurance broker with 30 years of experience, explained that these reports, known as Additional Driver Discovery (ADD) reports, cross-reference addresses associated with driver’s licenses, vehicle registrations, and other records. These reports aim to identify unreported drivers, which cost the insurance industry an estimated $10 billion annually in lost premiums and claims.
While the system helps insurance companies identify legitimate hidden drivers, errors sometimes occur. “Every once in a while, the information is wrong,” Bruce noted. In Ed’s case, the ADD report seems to have included faulty data, leading to the addition of the mystery driver to his policy.
The Frustration of Proving Innocence
Ed’s attempts to resolve the issue were anything but smooth. He reached out to Progressive multiple times via email and phone, only to be told that he needed to contact their underwriting team. After hours of calls, he received a form requiring him to declare that he didn’t know the mystery driver. Once he submitted the form, the additional driver was finally removed, and his premium returned to normal.
“The burden falls on me to prove this person does not drive my vehicle,” Ed lamented. His ordeal prompted him to file a formal complaint with the state insurance regulator. He urged other drivers to scrutinize their policies carefully to ensure no random drivers have been erroneously added.
Insurance Companies Respond
Progressive has not provided a detailed explanation for what happened to Ed, nor clarified how the error occurred. However, the incident highlights a broader issue with the reliance on ADD reports. While these tools are valuable for identifying hidden drivers, they can also lead to unwarranted headaches for innocent policyholders.
Expert Advice
Bruce advises policyholders to regularly review their insurance policies for any unexpected changes. “If they’re in the household, the assumption is that they may drive the vehicle,” he explained. However, errors in ADD reports can unfairly impact customers, as seen in Ed’s case.
Conclusion
Ed’s story serves as a cautionary tale for drivers across Colorado and beyond. As insurance companies increasingly rely on data analytics to detect hidden drivers, the risk of errors persists. For now, the best defense for consumers is vigilance: regularly checking their policies and swiftly addressing any discrepancies.
