Key Takeaways:
A retired NYPD officer's Liberty Mutual auto premium more than doubled to $1,039.83 a month after an unknown teenage driver was added to his policy without his knowledge.
Liberty Mutual said it mailed Michael Tarulli a notice asking whether he wanted to add the driver, and added her when he did not respond, treating his silence as agreement, according to a 7 On Your Side report.
The Staten Island retiree's premium rose from $426.50 to $1,039.83 a month, a jump of more than $613. The inflated amount cleared his checking account for five consecutive months before he noticed, pushing the account into the red and bouncing payments. Tarulli, who worked recovery at Ground Zero after 9/11, did not have the teenager's date of birth, Social Security number or first name; she lived on another floor of a multifamily home he once occupied.
Whether an insurer can treat silence as consent depends on the state, because notice and auto-renewal rules vary by jurisdiction. Consumer advocates argue a change large enough to double a bill should require explicit approval rather than an unanswered letter.
Tarulli recovered $2,667 only after a local TV consumer reporter intervened; within a day Liberty Mutual reversed course and returned the money. The company said it does not discuss customer policies publicly and reaches out to customers directly when asked for information.
The case points to three habits worth keeping: open mail from your insurer, act on renewal notices, and review the payments leaving your bank account. Comparison shopping for auto coverage at least once a year, especially before renewal, can surface cheaper options.
State insurance regulators set the rules on auto-renewal changes, and those rules can change. Policyholders should verify the latest requirements with their state's insurance department before relying on any single notice or renewal letter. The figures cited here come from the 7 On Your Side report and should be checked against the latest official statements.
The episode shows autopay can mask unauthorized premium increases for months, and that insurers may rely on unanswered mail to justify changes. Policyholders should confirm every driver listed on their policy and review renewal terms before the next billing cycle.
This article is for informational purposes only and does not constitute investment advice.
