If you have an insurance claim against a careless driver insured by Geico and feel that Geico is not handling the claim in a reasonable manner, then you may have a bad-faith claim. If Geico Insurance has been ignoring you, dragging your claim out, or offering ridiculously low-ball offers, then contact us at Maison Law. We’ll get your situation straightened out, and our attorneys are prepared to take legal action by filing a bad-faith lawsuit against Geico to get what you’re owed.
Bad faith law requires insurance companies to act in the best interest of their policyholders. This often means that an insurance company has the duty to look for coverage when the policyholder has a legitimate claim against them, rather than looking for ways to deny coverage.
How Bad Faith Law in California Protects Injured Victims
Bad faith law is covered under California Insurance Code 1033, which requires insurance companies, like Geico, to deny or pay for a claim within a reasonable amount of time. This law defines certain acts that qualify as bad faith:
- Unreasonable denial of policy benefits
- Failing to respond or act promptly with respect to a claim
- Attempting to settle claims for an amount that appears unreasonable compared to statements made in written or printed advertising material that accompanied the application for insurance
- Threatening to appeal an arbitration award in an attempt to compel the insured to accept a settlement less than what was awarded
- Advising a claimant not to hire an attorney
- Misleading a claimant as to the legal deadline for filing a claim or initiating a lawsuit
Geico’s History of Bad Faith Law Violations
In the past, Geico has been accused by it’s own policyholders of prioritizing its own financial interests over theirs by delaying investigations, making unreasonable settlement offers, or misrepresenting the details of a claim. Below are a few examples:
- California (2019): Large-scale power shutoffs due to wildfires and earthquakes resulted in significant damage to the lives of some Geico policyholders. Later, a claim was filed against Geico over the financial coverage for these damages, claiming Geico engaged in oppressive conduct, misrepresentation of facts, and downplaying the severity of injuries. An appellate court affirmed a $1 million bad faith judgment against Geico.
- California (2019): In the case Michael Mazik v. Geico, Mazik suffered serious injuries in a car accident with an underinsured driver who could only cover $50,000 of his damages. Mazik filed a claim with his own insurance, Geico, who only offered him an additional $1,000, even though his policy went up to $50,000. Subsequently, Mazik filed a bad faith lawsuit against Geico. After a jury trial, he was awarded $313,508 in compensatory damages and $4 million in punitive damages (later reduced to $1 million).
- Florida (2015): Geico misrepresented Florida’s No-Fault Law by under-reimbursing medical providers and violating Florida laws, requiring them to cover claims. The lawsuit against Geico was settled for an undisclosed amount.
Can I Sue Geico if They’re My Insurance Company?
Yes, you can sue Geico if they’re your own insurance company. To know for sure if you have a proper claim against your insurance company, contact Maison Law today. We’ll go over the details of your case for free and let you know if you have legal grounds to sue your insurance company.
As an insurance policyholder, you have the right to receive information about all coverages, conditions, limitations, and changes made by your insurance company in a timely manner. If any of these terms are breached, such as misrepresentation or non-disclosure of an important fact, you’ll generally have the right to take legal action. Examples of lawsuits against insurance companies include:
- Failure to pay on a covered claim: if your insurance company and its adjusters denied a claim that is within the insurance policy you purchased, you can sue them in small claims court
- Failure to reimburse you for all expenses you have incurred: if you spent $3k fixing your vehicle and the insurance will only cover $1,500, then you can sue them to get the full amount
- No response from your insurance company: if your insurance company fails to reimburse you and begins ignoring your calls, you can file a lawsuit against them.
- Denying legitimate claims: medical evaluations and records of property damage typically show evidence of damage, and they also list the cost of the damage. If your insurance denies damages or facts of your case, then you may have grounds to sue for bad faith.
Geico’s Obligation to Its Policyholders
Insurance policies are contracts between the insurer and a policyholder. California law requires that both parties have a duty of “good faith” to act in a manner that fulfills their obligations as stated within the insurance contract. Neither party can interfere with a party’s right to receive benefits. Typical insurance contracts require insurance companies like Geico to:
- Pay claims when the policyholder experiences a potentially covered risk
- Provide the policyholder with a legal defense against third-party claims
- Investigate a claim to determine who is liable for the injury
- Use good-faith attempts to settle claims against the insured
Steps to Avoid Improper Treatment from Geico Insurance
Unfortunately, policyholders will get taken advantage of by their insurers if they’re not careful. But, taking the time to understand how to avoid mistreatment from a major insurer like Geico can save you from a very stressful situation or let you know when it’s time to consult with a lawyer. The following are actions you should avoid when dealing with a Geico insurance claim:
- Be mindful of giving recorded statements to Geico: recording a statement for your insurer is common, but they may attempt to record you saying something that can damage your claim in the long run. For example, they may get you to say you’re not that hurt, your pain is minimal, or the damage hasn’t changed your life that much. They can take these statements out of context and use them against you in court.
- Avoid accepting early/lowball settlement offers: injuries get worse over time, and the cost of damage done to your life can also grow as the years go by. By accepting an early offer, you eliminate any chance of a doctor or healthcare planner evaluating the long-term financial damage you may face after an injury.
- Don’t allow Geico to reduce the value of your damages: insurance adjusters commonly claim medical costs are unreasonable, and will change the value of your medical bills. They do this by using their “billing expert,” who will almost always find a way to reduce the value of your damages.
- Don’t allow Geico to eliminate vital aspects of your claim: insurance companies will use every trick in the book to avoid paying out. For example, if you claim damages for a head injury that includes several other damages, such as dizziness, depression, or difficulty performing at work, an insurance adjuster may try to eliminate one or all of your additional damages when providing a value to your claim. So, it’s important to make sure all damages are covered.
Get Legal Help with Your Geico Insurance Bad Faith Claim
If you or a loved one has been injured in an accident, the attorneys at Maison Law can help you get the compensation you need. If Geico has denied your claim, or they are undercompensating you, or denying your claim, our firm is here to protect your right to fair compensation. We understand how to use the law against insurance giants, and we will not hesitate to file a lawsuit against them or represent you in court until your damages are fully covered.
Contact Maison Law today for a free consultation and case evaluation. Our firm does not require any upfront payments for our services, and we don’t get paid unless we win your case.
