The New York Times published a story this week about how some car insurance companies are charging consumers for car accidents, but they’re often misleading.
In the story, reporter Michael Fienberg pointed out that a car insurance company called American Express charged consumers $2,400 for an accident in January 2016, and then said the rate dropped to $1,000 after an auto insurance company wrote a letter to the editor that the company had made mistakes in calculating the rate.
According to the Times, American Express didn’t change the rate for the accident, but it did offer consumers a refund for the difference.
The company later offered to refund the difference for people who paid out-of-pocket for their car insurance.
“I know it’s not as glamorous as an $80,000 claim, but in the end you can get away with that,” American Express spokesperson Liz O’Donnell told the Times.
“We did not make any mistake in calculating our rates.”
The Times found that the claim rate was inaccurate, because it didn’t include the deductible and any insurance deductible.
The Times also found that American Express’ claims were likely the result of poor reporting on the part of the insurance company.
The insurance company also did not provide details about the type of claim or the type and amount of damages, but the Times did find that many of the claims were for the loss of life or property.
According a spokesperson for American Express, the company is working to fix its mistakes and has increased its claims rate for all claims.