Geico Sued for Alleged ‘Woefully Inadequate’ Coronavirus Auto Insurance Discount

By | July 24, 2020

  • July 24, 2020 at 10:53 am
    Rosenblatt says:
    Well-loved. Like or Dislike:
    Thumb up 73
    Thumb down 2

    So the carrier provided discounts to customers they weren’t entitled to when the policy was written and the contract was signed (unless they’re priced based on number miles driven, e.g. UBI/PAYD/PHYD), and now the customers are suing for not receiving ENOUGH discounts they weren’t entitled to in the first place? Am I understanding this suit correctly?

    • July 24, 2020 at 1:17 pm
      Jack says:
      Well-loved. Like or Dislike:
      Thumb up 27
      Thumb down 2

      The feel good moment for carriers is going to come back and kick them in the teeth!

      Next thing you know, customers will want 100% refunds when they don’t have a claim that year.

      • July 24, 2020 at 1:25 pm
        John Dough says:
        Well-loved. Like or Dislike:
        Thumb up 23
        Thumb down 0

        Believe it or not, Jack, I’ve had to explain a time or two over the years how the 100% refund for no claims is not how insurance works. An uptick in such requests/explanations in the COVID era will not be surprising to me.

        • July 24, 2020 at 1:31 pm
          Jack says:
          Well-loved. Like or Dislike:
          Thumb up 30
          Thumb down 8

          John- probably some of the same people that think college can be “free”.

          • July 24, 2020 at 3:13 pm
            Captain Planet says:
            Hot debate. What do you think?
            Thumb up 27
            Thumb down 25

            Or the same people who won’t wear masks in public because they want to be “free”.

          • July 24, 2020 at 3:50 pm
            Jon says:
            Poorly-rated. Like or Dislike:
            Thumb up 8
            Thumb down 27

            Hidden due to low comment rating. Click here to see.

          • July 27, 2020 at 10:11 am
            Jack says:
            Like or Dislike:
            Thumb up 10
            Thumb down 2

            Jon- yep, I heard all the staff in those college’s work for free so college can be free. sfb

          • July 27, 2020 at 10:15 am
            Captain Planet says:
            Like or Dislike:
            Thumb up 7
            Thumb down 8

            “College’s”

            Stay in school, kids.

  • July 24, 2020 at 11:22 am
    cicero says:
    Well-loved. Like or Dislike:
    Thumb up 36
    Thumb down 1

    …the carrier’s don’t HAVE to give back anything unless directed to by state authority; I’m with Rosenblatt here….what am I missing?

  • July 24, 2020 at 1:15 pm
    Jack says:
    Well-loved. Like or Dislike:
    Thumb up 12
    Thumb down 1

    Who didn’t see that one coming??

    • July 24, 2020 at 1:20 pm
      Rosenblatt says:
      Well-loved. Like or Dislike:
      Thumb up 27
      Thumb down 1

      I bet the carriers, offering premium refunds when not required by law nor per the insurance contract, didn’t expect customers to sue them for not giving their customers enough ‘free’ money.

      • July 24, 2020 at 1:25 pm
        Jack says:
        Like or Dislike:
        Thumb up 5
        Thumb down 3

        Rosen- I’m ready for everyone to get free insurance. I bet me income will triple if they would go ahead and do that.

      • July 31, 2020 at 1:23 pm
        CL PM says:
        Like or Dislike:
        Thumb up 1
        Thumb down 1

        Not all carriers. I work in product management for a carrier and we decided to give back premium several weeks before any regulators (CA, NJ) sent out their directive. We felt it to be the right thing to do. Claim frequency was way down in both Personal Auto and BOP. However, when we talked about a BOP surcharge to pay for all the riot damage, we decided that would unfortunately not go over so well with regulators.

  • July 24, 2020 at 1:19 pm
    JACK says:
    Well-loved. Like or Dislike:
    Thumb up 21
    Thumb down 2

    The Center for Economic Justice and the Consumer Federation of America. What a pile of dung this place is.

  • July 24, 2020 at 1:27 pm
    A-Aron says:
    Well-loved. Like or Dislike:
    Thumb up 25
    Thumb down 0

    Let’s just say, no matter how this industry tries to be a good steward, nothing will ever be enough. I have to explain daily that 3% of our clients represent 97% of all claims. If that is not representative of the law of large numbers, I am out of wind to speak. I truly hope this is struck down.

  • July 24, 2020 at 1:37 pm
    Reality says:
    Well-loved. Like or Dislike:
    Thumb up 16
    Thumb down 2

    To be clear, Geico did not give any money back on premiums paid on policies that were inforce at the time unlike most other major insurers. They only offered a discount coupon for future purchases with them. And that discount is available to anyone not just customers that were affected.

    Regarding the lawsuit, no they shouldn’t be entitled to anything. By the way, why is no one coming after airlines for not refunding customer balances? They are even getting bailouts.

  • July 24, 2020 at 1:46 pm
    K says:
    Well-loved. Like or Dislike:
    Thumb up 32
    Thumb down 0

    She wants a 30 % discount vs the 15 % discount she was given BUT only from mid march to april 30th. So she wants 15 % extra discount for 45 days. If she pays $2000 a year, basically its like $40 bucks extra. Its a windfall in profits for the lawyers – not Geico. They get a new house and you get free pizza. The lawyers should be fined to even take this as a case.

    • July 24, 2020 at 5:17 pm
      TxLady says:
      Well-loved. Like or Dislike:
      Thumb up 23
      Thumb down 0

      Maybe Berkshire Hathaway- GEICO should send out coupons for a free Blizzard at Dairyqueen and a box of See’s candy and call it a done deal.

      • July 24, 2020 at 5:21 pm
        Captain Planet says:
        Like or Dislike:
        Thumb up 4
        Thumb down 10

        Yeah, the mad hatters didn’t do all that ice cream protesting for nothing, right? Perhaps they should throw in a free haircut from Cost Cutters, too. That’ll quiet these free-loaders!

  • July 24, 2020 at 2:12 pm
    Trish says:
    Like or Dislike:
    Thumb up 2
    Thumb down 0

    PLEASE NOTE: We have GEICO policies… and yes they did give the 15% discounts on all our policies which have been in force a number of years.

    • July 27, 2020 at 12:35 pm
      Reality says:
      Like or Dislike:
      Thumb up 7
      Thumb down 0

      Hi Trish, to clarify- the discount applied on the _next_ term right? So a customer gets nothing back on premiums they had already paid. That is just a discount coupon on future policies that even new customers get. My brother is in this situation. He doesn’t get any decrease in premium until September if he chooses to renew.

      • July 28, 2020 at 4:28 pm
        VanHalen says:
        Like or Dislike:
        Thumb up 3
        Thumb down 0

        It depends, Reality.

        1) it was never a discount.
        2) an applicant who applied during the time frame received the credit, as did someone whose policy renewed during the time.

        There are probably steps that your brother could take to get the credit earlier.

  • July 24, 2020 at 2:35 pm
    J says:
    Well-loved. Like or Dislike:
    Thumb up 16
    Thumb down 0

    I believe GEICO offered 15% off the 6 month premium in NY, while other carriers offered a 15% credit for just the months of April and May. They didn’t need to offer anything. It’s a case of trying to help but no-one is ever satisfied. Perhaps the waived cancellations and waived photo inspections should have been enough?

  • July 24, 2020 at 2:42 pm
    mojo says:
    Well-loved. Like or Dislike:
    Thumb up 18
    Thumb down 0

    No good deed goes unpunished.

  • July 24, 2020 at 2:49 pm
    Mr. Integrity says:
    Well-loved. Like or Dislike:
    Thumb up 31
    Thumb down 1

    This proves two things . . . . . the lengths people will go to claim they are victims,and “owed” something, and the lack of integrity that permeates the legal profession and the “social” organizations that advocate or entertain these ludicrous lawsuits.

    • July 24, 2020 at 3:52 pm
      Jon says:
      Poorly-rated. Like or Dislike:
      Thumb up 2
      Thumb down 18

      Hidden due to low comment rating. Click here to see.

      • July 24, 2020 at 5:07 pm
        Marvin B says:
        Well-loved. Like or Dislike:
        Thumb up 14
        Thumb down 3

        Jon…I suspect you got one of those ‘free college educations’ because it appears you learned as much as you paid for that educations.

        • July 27, 2020 at 10:16 am
          Captain Planet says:
          Poorly-rated. Like or Dislike:
          Thumb up 2
          Thumb down 12

          Hidden due to low comment rating. Click here to see.

          • July 30, 2020 at 4:17 pm
            bob says:
            Like or Dislike:
            Thumb up 7
            Thumb down 0

            Minor typos…Major degradation.

            Very classy.

    • July 24, 2020 at 4:00 pm
      Captain Planet says:
      Like or Dislike:
      Thumb up 5
      Thumb down 9

      Hey Yogi,
      Why did you change your name again? Which social organizations are you referring to? Also, the lengths people will go to claim they are victims…Do you mean like claiming there are bots out here shutting down your comments? I will agree, some of these lawsuits are ludicrous.

    • July 24, 2020 at 4:56 pm
      Jon says:
      Poorly-rated. Like or Dislike:
      Thumb up 4
      Thumb down 15

      Hidden due to low comment rating. Click here to see.

      • July 24, 2020 at 5:51 pm
        Captain Planet says:
        Hot debate. What do you think?
        Thumb up 14
        Thumb down 23

        I don’t know, Jon. Lying and misinformation do not really seem to bother our conservative friends. I just think he wanted a name along the lines of his buddy, Agent, who of course now goes by Common Sense. Maybe he’s hoping the bots will leave this new name alone. I think it’s kind of cute how they change their names often, don’t you? I will say this, I do agree with him about the sense of entitlement people have. Entitled to use a Sharpie on a hurricane map. Entitled to using the power of The President to try and land a Major golf event. Entitled to drive a golf cart onto a green. Geico isn’t the only entity dealing with entitled brats. The entire country is dealing with one who chose to ignore a pandemic, you know?

        These policyholders do need to slow their roll and get a clue about how insurance actually works.

  • July 24, 2020 at 3:08 pm
    Captain Planet says:
    Like or Dislike:
    Thumb up 13
    Thumb down 4

    Gecko. Green. Discount. Camera. TV.

  • July 26, 2020 at 6:47 pm
    Observor says:
    Well-loved. Like or Dislike:
    Thumb up 13
    Thumb down 1

    In a free market with many competitors, you can just shop for a cheaper competitor. If I think Apple charges too much for a smart phone, I can purchase another brand, If Nike shoe prices are too high, I can purchase another brand, Why should insurance be any different?

  • July 27, 2020 at 1:25 pm
    Tom P says:
    Like or Dislike:
    Thumb up 1
    Thumb down 1

    Why is GEICO only allowing a 15% discount on 6 month policies in FL? They also allow a 15% discount on 12 month policies in the State…..Doesn’t seem fair??

  • July 27, 2020 at 2:44 pm
    TNReader says:
    Well-loved. Like or Dislike:
    Thumb up 16
    Thumb down 0

    From the article: “The plaintiff accuses the insurer of enjoying “substantial windfall in profits” during the pandemic”……anyone care to join me in a class action lawsuit against the manufacturers of hand sanitizer, masks, disinfectant wipes, etc….?

    • July 27, 2020 at 3:28 pm
      Captain Planet says:
      Like or Dislike:
      Thumb up 2
      Thumb down 3

      Don’t forget Tito’s, AB InBev, and Jack Daniels, too.

      • August 3, 2020 at 4:57 pm
        Interested says:
        Like or Dislike:
        Thumb up 0
        Thumb down 0

        and Walmart! The virus even go there!

  • July 28, 2020 at 2:12 pm
    Augustine says:
    Like or Dislike:
    Thumb up 8
    Thumb down 5

    Geico deserves it. They single handedly brainwashed an entire generation of consumers to believe that “only price matters.” They “dumbed down” the industry and sullied the profession. This couldn’t have happened to a more deserving company. AIG 2.0.

    • July 28, 2020 at 2:55 pm
      TheOCG says:
      Like or Dislike:
      Thumb up 7
      Thumb down 3

      I agree Augustine. When I report claims in our agency and Geico is the at fault carrier, I can almost guarantee that their insured will have state minimums. Not sufficient, but hey they saved on premium.

    • July 28, 2020 at 5:05 pm
      lonestar says:
      Like or Dislike:
      Thumb up 5
      Thumb down 0

      I don’t think they “dumbed down” the industry, they only exposed the average consumer for what most are and have exploited it. “I don’t want to learn about how to protect my assets, I only want cheap.”

      • July 28, 2020 at 10:45 pm
        Augustine says:
        Like or Dislike:
        Thumb up 8
        Thumb down 0

        The agent’s job is to educate the consumer on their incorrect assumption. Call Geico and ask for a quote. When you are talking to the agent, see if you get any form of “consultative risk management,” or whether you get “we can save you money.” I have very little respect for Geico. Additionally, they treat their lower level employees like a commodity.

        • July 31, 2020 at 10:35 am
          agent14 says:
          Like or Dislike:
          Thumb up 1
          Thumb down 0

          Love Geico or hate them, if you owned them you would be laughing all the way to the bank, as they are now the 2nd largest auto carrier in the US. Trust me, I do not like them as a competitor. Whether we are talking about investing for retirement, properly planning on asset protection, pulling one’s own teeth…. there are many laws and licensing requirements in place to protect consumers from by bad advice given from licensed agents, investment brokers, and doctors / dentists. However, does anyone find it ironic that there is nothing to protect the consumer from themselves? Many would argue why should there be? If someone wants to make a stupid financial decision, does the consumer want to be stopped? If I started my own auto insurance company, I think it is genius (from a company perspective) to write a bunch of state minimum liability policies to a large chunk of the population that make their purchase decision based on price. From the carrier’s side of the ledger, a policy limits payout of $30,000 for a bodily injury death is a lot less costly to the carrier vs. a $500,000 payout. Please note, I am not advocating this a good idea for the consumer. However, from the carrier’s ledger, it really limits their cost exposure. So I would pose those on this board, a different question: Should the government get involved to further protect the consumers from themselves, and make it illegal for the consumer to quote, procure, buy their own policy direct from a carrier without going through a licensed / regulated agent?

          • August 4, 2020 at 12:40 pm
            preston82 says:
            Like or Dislike:
            Thumb up 3
            Thumb down 0

            FYI… GEICO advised me to carry higher limits than what I had on my policy with another company. Increasing my limit to more than double than what I had, yet my premium with the higher limits with GEICO was less than the policy I had had in place for two years with another company.

  • July 30, 2020 at 6:08 pm
    FurriePrincess says:
    Like or Dislike:
    Thumb up 1
    Thumb down 0

    California rates on mileage, so a discount – which many companies did voluntarily, to adjust for less mileage during the shelter in place period was probably a valid adjustment. Some may have driven even less than the adjusted mileage. Ok, prove it with oil change/service receipts showing the odometer readings and you will get an adjustment on that basis. However… and this is an on-going problem, you aren’t driving as much so you car is parked and the evil do-ers are out in force stealing catalytic converters and just bashing windows for the heck of it. So collision risk is down, but comp activity is sky high. Pay back the 15% for increased hazard?

  • August 3, 2020 at 10:41 am
    KentU says:
    Like or Dislike:
    Thumb up 2
    Thumb down 1

    I want to see how this all plays out in the long run with loss ratios. Although my accident frequency is low my severity has increased substantially. Right now, claims payments may be down but, claims reserves have increased. Substantially more accidents occurring at higher speeds which causes more damages and injuries. I can guess that the GEICO lawyers will be pushing the same theory.

  • August 3, 2020 at 2:03 pm
    Joanne B says:
    Like or Dislike:
    Thumb up 2
    Thumb down 0

    And from what I have been told, any Geico customer’s who chose to leave and go to another carrier, for any reason, are required to return the refund they received. I do not know how they would be able to actually enforce this action, but another blow to Geico.

  • August 4, 2020 at 12:01 am
    KB says:
    Like or Dislike:
    Thumb up 1
    Thumb down 0

    Funny, I just received a cancellation notice from Geico today claiming 3 accidents from 2016. I just signed up with Geico a year ago, one accident noted. Called immediately to follow up because one accident I wasn’t driving or even in the vehicle and was told the accident was on my DMV record. Checked my records and I have no accidents listed. Geico told me they would renew my policy for $200 more this year. Maybe they are now trying to get people not to renew, save themselves that 15% as I had just paid six months payment right before they announced that they would give back to their customers.

  • August 9, 2020 at 8:26 pm
    KM says:
    Like or Dislike:
    Thumb up 1
    Thumb down 0

    Funny, they promised the 15% discount but my renewal rate actually went UP by 75% for some strange reason. So knock off 15% but turn around and jack up the overall price by $1200 for 6 months. No tickets, accidents or changes otherwise.

    • January 9, 2021 at 12:36 pm
      Chris says:
      Like or Dislike:
      Thumb up 0
      Thumb down 0

      Why are we not surprised?
      Just like king obama’s UNaffordable Care Act…covering “preexisting” conditions AND “health insurance for all” isn’t “free”.
      Get a clue folks…complain all ya want…Y’all gonna pay for the “discount” one way or another.
      LOL!

  • August 18, 2020 at 3:58 am
    BM says:
    Like or Dislike:
    Thumb up 1
    Thumb down 0

    I’m being charged for services even after I canceled! They keep sending me statements. Talk about a crooked insurance company.

  • August 31, 2020 at 2:53 pm
    Reeni says:
    Like or Dislike:
    Thumb up 1
    Thumb down 0

    I noticed other insurance companies were reducing payments and giving deep discounts for the months of February, March, and April.
    So, I called, and I was told I would get a discount, but it sure doesn’t look like I got one.
    My rates actually went up several dollars.
    What gives?’

  • January 27, 2021 at 4:22 pm
    Ana says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    I am not looking for a handout from Geico. What I would like is a small reduction of my premiums! If my car currently puts 10 miles on it in 2 weeks, that’s a lot. During pre-pandemic times, it would be more like 50. I am 70 yrs old, and SS barely keeps my head above water. Give me a break, already! I’ve been with Geico for about 22 years. Customer loyalty rewards? Not even. Even $5 a month off would help.



Add a Comment

Your email address will not be published. Required fields are marked *

*