DENVER (KDVR) — A Denver woman is out hundreds of dollars after she said a car insurance company added a complete stranger to her policy without her knowledge. Her story has consumer watchdogs offering advice that could save people money.
That advice — especially in a paperless society — is to keep a close eye on automatic bill pay.
Rebecca Lopez was trying to save some money on car insurance. She shopped around and landed on nearly $67 a month for auto insurance from AAA just over a year ago. She said she took advantage of the paperless and auto-pay discounts.
“I’m counting on these people to be honest and take out what they need,” Lopez said.
But an error led to her premium increasing for what Lopez thought was coverage on just her vehicle. She called AAA when she realized the issue.
“They always refer you to go to the app because you can’t really get to a representative,” she said.
But the app couldn’t solve this mystery and eventually, Lopez said she was told about the mishap.
“It was a new driver on my policy that I didn’t even know,” she said.
Lopez was being incorrectly charged monthly. Due to the convenience of auto-bill pay, she didn’t notice right away. She said about eight months went by until she realized she was out roughly $1,300.
“I asked [AAA] how in the world did that happen without my knowledge,” Lopez said. “I’m just getting all these different stories, and nobody is giving me a clear answer.”
But with the FOX31 Problem Solvers on the case, AAA is now investigating. The insurer said a system error is to blame.
Consumer advocates told the Problem Solvers, in general, people can work to avoid this kind of risk, whether it be from a bad actor or due to an honest mistake.
“It’s important to recognize mistakes happen way more than they should,” said Danny Katz, executive director of the Colorado Interest Research Group.
Katz said people need to take the time to look at overstatements.
“It’s easier not to look at them if they don’t come in the mail,” Katz said. “But you should look at them every time you get them, every month.”
Katz also recommends, especially during National Consumer Protection Week, to look over annual credit reports and freeze credit to prevent someone else from using it. For Rebecca, she wants her story to help others.
“Always check your information,” she said.
Experts believe far too many people aren’t watching what is automatically drafted from their accounts. Getting into, or staying in the habit, of checking statements will ensure months will not turn into a year or more of paying more than you should.
AAA said it is grateful Rebecca’s experience was brought to its attention, and the insurer said it is making the situation right for Rebecca. A spokesperson for AAA said a system error is to blame, and the error has been fixed.
