Why Don't Companies Ever Tell You When You are Overpaying?

My sister realized just recently that she was overpaying for her car insurance. She only found this information out though once she decided to call customer service to call about a payment that she had to make. When she called, the customer service representative wanted to verify information and realized that certain pieces of information were incorrect.

After the information was corrected was when the representative said to her, "I hope you are sitting down. I just want to let you know that you have been overpaying your insurance for about 6 months." She had no idea and no one cared to tell her.

Certain pieces of information that were incorrect were in regards to her gender(they thought she was a male)and they hadn't updated her file and had her down as a student when currently she isn't. She claims that she submitted all the updates for renewal status but apparently none of those changes ever were made. So, now she will be credited several hundreds of dollars.

The thing is when you underpay to these companies they bring out the watchdogs or terminate your service but when you overpay no one ever alerts you. Communication is key.