Geico Insurance might have catchy, memorable ads and a cute mascot, but Geico Insurance sometimes doesn’t treat its policyholders as well as those ads might portray. Geico’s insurance adjusters and other employees will occasionally ignore their policyholders, submit low-ball offers, or delay claims processing.
If this has happened to you, you might have a bad faith insurance claim. This may entitle you to damages that add up to more than just your denied or underpaid claim. But you’ll need to first talk to an insurance bad faith lawyer, such as one from Maison Law. To schedule a free, no-obligation consultation, contact us today.
Geico Insurance’s History of Bad Faith Insurance
Sadly, Geico is fairly well-known for not treating its policyholders the best. Below are some examples of this from across the country:
- Florida (2015): As a result of allegations of Geico misrepresenting Florida’s No-Fault Law by not fully reimbursing medical providers, a class action lawsuit was filed. The case settled with Geico paying a confidential amount to resolve the case without a trial.
- California (2019): When widespread power shutoffs resulted from earthquakes and wildfires, several Geico policyholders became unhappy with how their claims were handled. In at least one case, a claim was filed against Geico accusing the insurance company of misrepresenting facts and downplaying the alleged damages. A bad faith lawsuit ensued, and the court ordered Geico to pay $1 million for insurance bad faith.
- California (2019): In Mazik v. Geico, Mazik suffered injuries from a car accident. The other driver was underinsured and could only pay for $50,000 of Mazik’s damages. Mazik filed an underinsured claim with Geico, but was only offered an extra $1,000 even though he had up to $50,000 in available underinsured coverage. Mazik alleged bad faith and took Geico to court. At trial, the jury awarded him $313,508 in damages, not including $4 million in punitive damages (which the court later reduced to $1 million).
How California Protects Policyholders From Insurance Bad Faith
California requires its insurance companies to act in the best interests of its policyholders. This doesn’t mean insurance companies have to always pay out claims or can’t ask for verification of claims. But it does mean they have to act fairly and reasonably, even when limiting or denying insurance benefits. Not doing so may constitute bad faith and can include actions such as:
- Denying insurance benefits without good reason or explanation.
- Failing to communicate promptly with policyholders.
- Delaying the processing of claims.
- Refusing to settle claims when liability and damages are not in dispute.
- Unfairly coercing a policyholder into accepting a settlement amount by threatening further legal action.
- Advising a policyholder not to talk to a lawyer.
- Tricking or misleading a policyholder concerning a legal or insurance-related deadline.
Geico’s Duty to its Policyholders
When you enter into an insurance contract with Geico, you’re both required to act fairly and in good faith with each other. For instance, as a policyholder, you’re required to pay your premiums and cooperate with Geico’s investigation into your claim. This might mean providing receipts, invoices, or other documents to support your claims and financial losses. On the flipside, Geico is required to provide benefits and engage in good claims practices, including:
- Paying claims for covered losses and only refusing to pay when there’s a legitimate reason for doing so.
- Providing a legal defense against third-party lawsuits.
- Conducting an investigation into claims to determine liability and the extent of damages.
- Negotiating in good faith to settle claims, whether with the policyholder or a third-party against the policyholder.
Suing Geico When They’re Your Insurance Company
If Geico fails to keep its end of the insurance bargain, and does so in an unfair and unreasonable way, you could have a bad faith claim against them. Geico may be acting in bad faith if it:
- Fails to pay for a claim it admits is a covered loss.
- Denies a claim without giving any reason for the denial.
- Refuses to provide full compensation as required by the insurance contract without justification.
- Refuses to provide you with a legal defense if you’re sued for an incident arising out of a covered loss.
- Ignores you when you try to reach out to ask questions or check the status of your insurance case.
Avoiding Problems With Geico Insurance
Even if Geico doesn’t act in bad faith toward you when handling your claim, it’s still possible to have problems with them. If you’re not careful, you might do or say something that makes it harder to receive full reimbursement for your covered loss. Below are certain things to avoid doing when interacting with Geico and its insurance adjusters:
- Watch what you say to your adjuster. This is especially true when giving recorded statements to the claims adjuster. If you make a mistake with what you say, or change your story after giving these statements, it’s possible for Geico to use that inconsistency against you to deny or limit a claim payout. If your claim involves a large amount of money, or there’s genuine dispute as to your level of fault in causing the loss, it’s best to first talk to an insurance lawyer before giving a recorded statement to the Geico insurance adjuster.
- Avoid immediately accepting the first offer. Geico is known for low-balling insureds for covered losses, requiring the insured to then put in more work to ask for more money they’re already entitled to receive. But another reason to avoid accepting early settlement offers is because damages can sometimes get worse over time. This is especially true when you get a second opinion for a car repair estimate or see another doctor who tells you that your “minor” injury is more serious than originally thought.
- Don’t automatically agree with the Geico adjuster. Many Geico adjusters are overworked and try hard to process claims as quickly as possible. In their rush, they sometimes miss important facts, which may increase the size of your claim. Other times, a claim underpayment is deliberate, or at least not an understandable mistake. Either way, don’t blindly let a Geico adjuster tell you something’s not covered. Also, don’t let them tell you that your claim is worth less than you say without first giving you an explanation or you having an opportunity to offer additional proof to support your claim.
Maison Law’s Bad Faith Insurance Lawyers Are Here for You
If you’re having trouble getting full compensation for your covered insurance loss from Geico, you could probably use some outside help. One of the insurance lawyers from Maison Law would be more than happy to step in and see what they can do for you, including analyzing your case and deciding if a bad faith cause of action exists.
We know how insurance companies like Geico work, so we’re well-positioned to help you take on these large insurance companies and get you the compensation you deserve. To get started, contact us to schedule a no-cost, no-obligation consultation. Also, you don’t pay us anything unless we can recover money for you, so you’ve got nothing to lose by reaching out.
