Phantom driver? NW Indiana family billed for deceased relative for years

Car insurance costs are accelerating — and drivers are feeling the whiplash.

That’s why one Valparaiso, Indiana, family did a double take when they spotted a strange detail on their bill. One they thought they had laid to rest.

“He was very easygoing — I mean, even the squirrels loved him. He was a very nice guy,” said Danna Alexander, whose father‑in‑law, Dale, passed away more than a decade ago.

But until recently, Dale was still with the family In an unexpected and inconvenient place: their auto insurance bill.

“I noticed under the licensed drivers, it had me, my husband, and my father-in-law. Now mind you, my father-in-law had been deceased 11 years at this point, and we never added him to our insurance,” Alexander said. “He has never driven a vehicle of ours.”

Alexander said Dale lived in Arizona, and had his own State Farm policy.

As soon as she noticed Dale’s name on her policy last fall, she asked her State Farm agent about it.

“They removed his name and then said that I would be saving $50 a month by having his name taken off,” said Alexander.

But how long had Alexander been paying for her deceased father-in-law?

In emails from Alexander’s insurance agent to State Farm corporate, he said Dale somehow appeared on the family’s policy back in January 2010. Add it all up, and Alexander may have shelled out nearly $9,000 in extra auto insurance.

In that same email exchange, the agent acknowledged a “glitch” in State Farm’s system that caused “the deceased person” to be “added as a driver, probably during some update,” and admitted that Alexander’s family was “not the only household either with bad info being loaded…”

But even with that admission in black and white, Alexander said State Farm corporate didn’t take any responsibility.

“[State Farm] called us back, said that it was our fault, that he was on our policy because when we get our renewals we’re supposed to look over everything, and if anything is incorrect, it’s our responsibility to let them know. But I never added him, so why would I think anything had changed?” she said.

In a statement, State Farm told NBC 5 Responds: “We are not aware of any error in which incorrect information was systematically loaded into households.”

Alexander’s insurance agent did not return our request for comment.

Recently, Alexander said she received a few checks from State Farm totaling about $1,300.

But Alexander said she doesn’t believe she’ll see another dime of the thousands she said she’s owed due to the so-called “glitch.”

In a statement, State Farm said, “Due to our privacy policy, we can’t comment on any individual customer’s policy or billing details. In general, when questions like this come up, we review the information promptly and do our best to resolve concerns fairly—and when we can, we may provide adjustments as a goodwill gesture to help make things right for long‑-standing customers.”

“I get frustrated, you know, you see all these State Farm commercials, ‘like a good neighbor, State Farm is there.’ That’s not a very good neighbor. They’re not looking out for you,” Alexander said.

Here’s our key takeaway:

• Insurance experts say adding extra drivers—especially teenagers or older drivers—can push your premium up. And in some cases, insurance companies will automatically add people who live in your household to your policy.
• So when that renewal notice shows up—usually once or twice a year—take a minute to check who’s covered, and report any mistakes as soon as you spot them.