GEICO Auto Insurance Claims, Settlements, and Payouts

 

An Attorney’s Guide to Winning a Car Accident Claim against GEICO – through Settlement or Verdict

 

According to a recent nationwide survey, GEICO insurance company has the highest customer satisfaction rating for car insurance providers. So, with that in mind, you would think that GEICO auto insurance claims would be easy to file for and that you would get a fair settlement for your car accident injuries quickly.

 

The truth is not so clear-cut, though. For example, satisfying customers is not the same as satisfying plaintiffs with liability claims against negligent drivers insured by GEICO. Nor do quick responses to questions about premiums or payment result in satisfaction with a settlement offer through your first party underinsured or uninsured motorists’ policy when you have suffered a fracture or back injury.

 

Despite high rankings for customer service and funny commercials, GEICO auto insurance claims can still be complicated and hard-fought. Indeed, they often are – particularly when you seek compensation for a GEICO-insured driver’s acts or omissions. They’ve faced multiple class action lawsuits throughout the company’s history, including a very recent one involving the pandemic. Some of these lawsuits resulted in payouts for customers.

 

This article aims to help you understand what to expect when you have a case against GEICO and how to determine a fair settlement value for your motor vehicle collision injuries. In addition, it explains what you can do to get the most money possible from GEICO for your auto accident, with a focus on claims against GEICO in Virginia. But despite this focus, you can use a lot of this information for GEICO insurance claims in other states.

 

Are you interested in learning more about GEICO’s past, how it handles auto accident claims and payouts, and current class action lawsuits against the company? Do you think that GEICO’s settlement offer is significantly less than the value of your car accident claim in Virginia (the answer is probably yes)?

 

Then keep reading to learn how to battle GEICO’s defense strategies in auto liability claims – and win.

 

And if you have an insurance claim against GEICO in Virginia, call us at 804-251-1620 or 757-810-5614 for a free consultation with one of Virginia’s best personal injury lawyers. Our aggressive approach to resolving car crash claims can put more money in your pocket.

 

 

A Brief History of GEICO Auto Insurance Company

 

You have likely heard of GEICO if you watch television or listen to the radio. With the help of The Martin Agency in Richmond, Virginia, GEICO has produced and spent billions on ad campaigns featuring the GEICO Gecko and the GEICO Cavemen. These campaigns’ goal is to get you to purchase first-party and third-party (liability) insurance coverage from GEICO. 

 

Owned by Berkshire Hathaway (run by Warren Buffett) and headquartered in Chevy Chase, Maryland, GEICO has a long history and remains one of the country’s most successful auto insurance providers. It primarily sells automobile insurance, but it also offers property (home and renters), life, and umbrella coverage in partnership with other insurance carriers. 

 

Let’s look at how it got this way. 

 

A husband-and-wife team (Leo and Lillian Goodwin) founded GEICO’s auto insurance business during the height of the Great Depression. Though not affiliated with any federal, state, or local government organization, GEICO originally intended to sell its services to federal employees, military officers, and other government workers. In fact, GEICO stands for Government Employees Insurance Company.

 

GEICO’s growth continued for years. By 1964, GEICO was celebrating its 1 million policyholder mark. And today, GEICO insures more than 30 million vehicles under approximately 18 million auto insurance policies. These statistics make GEICO the second-largest private passenger auto insurer in America. State Farm is the largest. 

 

GEICO Affiliates

 

GEICO has several affiliates, including:

 

• GEICO Advantage Insurance Company

 

• GEICO Casualty Company (formerly Guardian Casualty Company and Criterion Casualty Company)

 

• GEICO Choice Insurance Company

 

• GEICO General Insurance Company (formerly known as the Equitable General Insurance Company)

 

• GEICO Indemnity Company (formerly the Criterion Insurance Company)

 

• GEICO Secure Insurance Company

 

• Government Employees Insurance Company

 

What GEICO Claims to Offer

 

GEICO offers car insurance as its main product.

 

It does, however, offer other lines of insurance, such as:

 

• Aircraft Liability

 

• Aircraft Physical Damage

 

• Boiler and Machinery

 

• Burglary and Theft

 

• Commercial

 

• Farm owners

 

• Fidelity

 

• Fire General Liability

 

• Glass

 

• Homeowners

 

• Inland Marine

 

• Ocean Marine

 

• Surety

 

• Water Damage

 

Customers pay into a car insurance policy every month (called premiums), and in exchange, they get specific protections if they get involved in an accident. Car insurance policies work because the company can use the funds collected from multiple investors to cover the costs of one policyholder’s accident.

 

Almost every state requires drivers to get car insurance (or pay an uninsured motorists’ fee), and GEICO claims to offer one of the most competitive and affordable car insurance policies throughout the nation.

 

These policies provide protection for accident costs, such as:

 

• Physical injuries (to yourself or others)

 

• Property damage to other cars or another person’s property

 

• Property damage to your vehicle

 

• Coverage for accidents other than a collision

 

• Damages in the event you collide with an uninsured or underinsured motorist

 

GEICO offers many of these services. The cost of each person’s car insurance policy hinges on several factors like the individual’s driving record, the area they’re getting insured for, and the value of the driver’s car.

 

Statistics for GEICO Private Passenger Auto Insurance in Virginia

 

GEICO has a significant presence in Virginia’s private passenger auto insurance market. 

 

In addition, GEICO is the biggest auto insurer in Maryland.

 

And GEICO makes a substantial profit from collecting more in auto insurance premiums than it pays to its insureds or those alleging an insureds’ negligence caused damages.

 

Auto Liability and Vehicle Damage Premiums Written by GEICO in Virginia

 

In 2020, for example:

 

• GEICO Advantage Insurance Company wrote more than $208 million in liability insurance premiums and $166 million in auto physical damage premiums. 

 

• GEICO Choice Insurance Company reported more than $132 million in liability insurance premiums and more than $99 million in physical damage premiums.

 

• GEICO General Insurance Company wrote more than $73 million in liability premiums and more than $69 million in auto damage premiums.

 

• GEICO Secure Insurance Company reported more than $64 million in liability insurance premiums and more than $40 million in auto physical damage premiums.

 

• Government Employees Insurance Company wrote more than $53 million in auto liability insurance premiums and more than $50 million in auto physical damage premiums.

 

• GEICO Indemnity Company registered more than $47 million in liability insurance premiums and more than $48 million in vehicle property damage premiums.  

 

• GEICO Casualty Company wrote more than $28 million in liability premiums and more than $32 million in auto physical damage premiums. 

 

Auto Losses Paid by GEICO in Virginia

 

State Corporation Commission – Bureau of Insurance data from 2020 shows that:

 

• GEICO Advantage Insurance Company paid more than $121 million in liability damages and $114 million in property losses.

 

• GEICO Casualty Company paid more than $23 million in liability damages and $17 million in property damage.

 

• GEICO Choice Insurance Company paid more than $47 million in liability losses and $31 million in auto physical damages. 

 

• GEICO Indemnity Company paid more than $31 million in liability damages and $25 million in property damage.

 

• GEICO Marine Insurance Company paid more than $4 million for claims.

 

• GEICO Secure Ins. Co. paid more than $38 million in auto liability losses and $29 million in auto property damage. 

 

• Government Employees Insurance Company paid close to $35 million in liability losses and $21 million in auto physical damages. 

 

Read this report for more information on the data.

 

How Do I Report a Car Accident to GEICO?

 

You should report your accident claim to your insurance carrier and the other driver’s insurer as soon as possible, regardless of who is at fault.

 

Delaying may result in problems collecting fair compensation. 

 

You have several ways to submit an auto accident claim to GEICO:

 

• File your claim online with the GEICO Mobile app or on geico.com/claims.

 

• Call GEICO at (800) 841-3000

 

• Call or email your insurance agent and ask the agent to help you submit a claim.

 

What Information Will GEICO Ask for When I Report the Accident Claim?

 

The GEICO claims representative will likely ask you for:

 

• The date and time of the accident

 

• The accident location (street, city, state, nearest intersection, etc.)

 

• What happened

 

• If the police responded to the accident scene

 

• A copy of the police crash report (if there is one)

 

• The names and contact information of all other drivers and passengers involved in the crash

 

• The insurance information for the other drivers

 

• The names and contact information of accident witnesses

 

• Pictures or videos of the accident scene or your injuries

 

Which GEICO Adjuster is Handling My Claim?

 

GEICO has several regional offices and claim centers. 

 

Readers hurt in a car accident in Virginia will likely deal with a claim adjuster located in GEICO’s Fredericksburg office (1 GEICO Blvd, Fredericksburg, VA).

 

However, GEICO may process your auto insurance claim from one of these regional offices if you had a motor vehicle collision elsewhere:

 

• Tucson, Arizona

 

• San Diego, California

 

• Jacksonville, Florida

 

• Lakeland, Florida

 

• Macon, Georgia

 

• Honolulu, Hawaii

 

• Indianapolis, Indiana

 

• North Liberty, Iowa

 

• Kansas City, Kansas

 

• Marlton, New Jersey

 

• Buffalo, New York

 

• Woodbury, New York

 

• Dallas, Texas

 

• Houston, Texas

 

• Springfield, Virginia

 

• Virginia Beach, Virginia (1345 Perimeter Pkwy, Virginia Beach, VA 23454)

 

• Renton, Washington

 

Should I Give a Recorded Statement to the GEICO Claim Adjuster?

 

No.

 

We recommend that you not permit the adjuster to take your recorded statement. Rarely do good things come from giving one.

 

Does GEICO Settle Car Accident Claims?

 

Yes, GEICO will settle auto liability claims.

 

But do not be surprised if you have to file a lawsuit (complaint) to get a fair offer.

 

Indeed, you should expect the first few GEICO settlement offers to be low – maybe even less than your claimed medical bills.

 

Filing a Lawsuit When GEICO Insures the Defendant Driver

 

For many of you, filing a lawsuit against the driver insured by GEICO puts you in the best position to negotiate a reasonable auto accident settlement.

 

In our experience, settlement offers tend to increase after filing suit or completing discovery.

 

There are several reasons for this.

 

First, litigation involves many deadlines. So by filing a lawsuit, you increase the time pressure on the adjuster.

 

Second, GEICO may transfer your file to a new adjuster familiar with litigation risks after you file the complaint. And this adjuster may be more reasonable with settlement offers.

 

Third, being proactive tells GEICO that you are not afraid to take your case to trial.

 

Fourth, many GEICO adjusters do not receive much settlement authority before filing a lawsuit. So the lowball first offer you received could result from the adjuster’s limited authority – they do not want to put all their money on the table immediately.

 

But remember, this is a generalization. You should discuss your case’s specific facts and circumstances with your attorney to determine if pre-filing negotiation makes more sense than running to the courthouse.

 

How Does GEICO Calculate the Value of My Auto Accident Claim?

 

GEICO does not use a standard formula to calculate losses and determine how much to offer to settle your claim. 

 

But like many other insurance companies, GEICO uses “predictive” claims handling software to determine whether to pay the claim for losses and, if so, how much. These types of software use algorithms to create “standard” values for accident claims. 

 

Specifically, GEICO uses Claim IQ software to calculate damages. First, the claim adjuster collects information about the accident and injuries and inputs that data. Then the Claim IQ software generates coverage and adjustment (payout) recommendations. 

 

Unfortunately, the algorithms used and numbers generated might miss factors unique to you and your accident, such as physical pain and suffering. Therefore, you must know what factors persuade adjusters to offer better settlements or result in claims handling software generating higher auto accident payouts. And offer proof of these personal injury damages. 

 

These factors include the type and severity of your injury, witnesses, your credibility, the strength of causation and disability reports, and policy limits. 

 

You can read more about the value of car accident cases here.  

 

Does GEICO Take Cases to Trial?

 

Yes, sometimes.

 

Generally, GEICO is not afraid to go to trial. Especially if its attorneys and adjusters think they have a strong liability defense or you have refused to make a reasonable settlement offer.

 

And you should not be either.

 

Prepare your case as though you will need to present it to a jury. And this preparation should cause GEICO to make a fair offer during litigation.

 

What Happens if GEICO Refuses to Settle and I Get a Verdict at Trial More than the Defendant’s Policy Limits?

 

An excess verdict is a jury (or judge verdict) that exceeds the defendant’s insurance coverage.

 

Depending on the circumstances, you (or the insured) have choices to make after the excess verdict.

 

If GEICO tendered (offered) the policy limits, it likely has no exposure to a bad faith claim. Instead, you must determine whether the defendant has assets from which to collect the excess judgment.

 

However, if GEICO rejected an offer to settle for policy limits before trial, there is a risk a court could find it acted in bad faith.

 

Therefore, GEICO must decide whether to try to resolve the excess verdict or risk a bad faith claim, which the insured defendant often assigns to the accident victim.

 

How Will GEICO Pay My Claim?

 

After resolution –

 

GEICO will pay your claim for bodily injury damages by check (either to you or your lawyer).

 

It may pay your property damage claim the same way. Or it might submit payment to the auto repair shop directly.

 

Do I Need a Lawyer to Settle My GEICO Claim?

 

No.

 

You can handle a GEICO insurance claim without a lawyer.

 

But doing so could be a big mistake that costs you time and tens of thousands of dollars (or more).

 

And the greater the severity of your injury, the more likely you need a lawyer to help you understand your options and aggressively pursue the right one.

 

Who are GEICO’s Insurance Defense Lawyers in Virginia?

 

GEICO has several staff counsel offices in Virginia, such as:

 

• Law Office of Erin Slusser (Roanoke)

 

• Law Office of Michael Woodworth (Virginia Beach)

 

• Law Office of Thomas D. Lane (Glen Allen)

 

• Law Office of William Shanahan (Fairfax)

 

These law firms defend personal injury claims against persons insured by GEICO. Still, they are unique in that the attorneys and support staff (paralegals, administrative assistants, etc.) at these firms are GEICO employees. 

 

These types of law firms are called captive law firms – the firm operates under a separate name, but all the attorneys are employees of the insurer.

 

Generally, I find the lawyers at captive law firms reasonable and easier to work with to resolve the claim than adjusters.

 

In addition to captive firms, GEICO may also refer cases to outside counsel. 

 

Expert Medical Witnesses Designated by GEICO in Past Cases

 

In auto crash cases and workers comp claims, personal injury lawyers repeatedly see insurers use the same expert medical witnesses. However, these doctors do not treat you. Instead, the insurer hires them to support their defense that you are not as injured or disabled as alleged. 

 

Our research shows that GEICO or other insurers have designated the doctors below as expert witnesses in claims. 

 

• Dr. Mark Ross

 

• Dr. John Aldridge

 

• Dr. Lawrence Cohen

 

• Dr. Ian Wattenmaker

 

• Dr. Wylie Lowery

 

• Dr. Felix Kirven

 

• Dr. William Thomas Grant

 

• Dr. Donald Hope

 

• Dr. Philip Holzknecht

 

• Dr. Ian D Gordon

 

• Dr. Daniel Cavazos

 

• Dr. Michael Johnson

 

• Dr. James Vascik

 

We recommend that you learn as much as possible about the defense medical experts designated by GEICO, including their financial relationship with the insurer.

 

You can use this data to impeach the credibility of GEICO’s medical experts and bolster your claim. 

 

Will GEICO Raise My Insurance Rate after an Accident?

 

Maybe.

 

It depends on how many crashes you have had.

 

According to its website, GEICO will not increase your insurance rate after your first otherwise surchargeable, at-fault accident.

 

However, this policy, known as Accident Forgiveness, applies only to your first accident.

 

Your insurance rates, therefore, might increase after your second at-fault accident.

 

In addition, one study indicates the average insurance rate increase for GEICO drivers after an at-fault collision was $721. And another report found the average annual premium increased from $1,297 to $1,900 after an at-fault accident.

 

Will My GEICO Insurance Rate Increase if I Get a Speeding Ticket?

 

Yes, GEICO may raise your insurance rates when it is time to renew your policy.

 

One analysis found that GEICO’s annual premium for drivers with a speeding ticket increased 34%.

 

How Much Will GEICO Pay If My Car is Totaled?

 

Presuming no coverage issues, GEICO will pay the fair market value for your vehicle if it totals it.

 

However, GEICO will pay the loan balance before sending the remainder (if any) to you if you have an auto loan.

 

Are Accident Victims Treated Fairly By GEICO?

 

There is no doubt that GEICO provides a valuable service. 

 

But auto insurance is a necessity in some states – something the law requires that you have to drive.

 

So, are accident victims treated fairly by GEICO? Do they receive fair payouts after they get involved in accidents?

 

When answering this question, it’s important to remember that GEICO is a business seeking profit. Therefore, it’s never in their best interests to maximize your payout. 

 

Instead, paying you the least amount they can is better for their bottom line. This explains why adjusters are not your friends and are often not on your side. It’s also why consumers have accused GEICO of not paying the actual value of injured victims’ claims in the past.

 

Indeed, GEICO entered into a Settlement Order with the Virginia State Corporation Commission in 2018 to resolve alleged violations of parts of the Code of Virginia governing required notices, insurance contract forms, handling claims, and other items. 

 

GEICO: Class Action Lawsuits and Settlements You Should Know About

 

Class action lawsuits are civil lawsuits in which the plaintiffs represent a large group of people or business entities who suffered common harm. 

 

Despite having a well-staffed legal team, GEICO has been the subject of several class action lawsuits. Below, we’ll go over some of the class action lawsuits that you should know about. From underpaying claims to not investigating them thoroughly, GEICO has been accused of a lot.

 

Akers v. GEICO: Customers Who Lost Their Vehicles Allege They Were Underpaid 

 

In Akers v. GEICO, plaintiffs argue that consumers who lost their vehicles after crashes were underpaid. This issue wasn’t a one-time thing, either. Plaintiffs argued that the underpayment was repeated and systematic. GEICO reportedly failed to pay all the reasonably necessary replacement fees for all Kentucky residents who suffered a total loss of their cars.

 

Green v. GEICO: GEICO Violated Delaware Law by Using Certain Rules When Deciding Whether to Pay Claims for PIP Benefits

 

In this recent class action lawsuit, the plaintiff alleges that GEICO will often improperly deny a claim without performing an investigation first in good faith. As a result, according to the plaintiffs, GEICO violated their contract. 

 

The court ultimately denied the plaintiff’s first two arguments, which involved the breach of contract arguments. Still, the court ruled that GEICO’s practice violated certain sections and that the rules in question (which automated a process) are antiquated and need updating. In addition, the court held that GEICO could not eliminate human judgment from the process without further updating. More human oversight of these determinations would help rectify the problem.

 

Roth v. GEICO: GEICO Settles to Resolve Allegations It Violated Its Contract Terms by Not Paying Sales Tax and Title Fees 

 

In yet another class action lawsuit, Roth v. GEICO, plaintiffs alleged that GEICO was unfairly attempting to deny that sales tax and title fees weren’t owed by the company when replacing vehicles. Despite the company’s arguments, the plaintiffs reached a settlement with GEICO regarding the issue. The case settled for 100% of the damages, which amounted to about $79 million dollars.

 

Pugliese v. GEICO: GEICO Accused of Violating Federal and State Overtime Laws

 

A former GEICO adjuster alleges that GEICO pressured him and other adjusters not to report overtime hours worked.

 

In April 2022, a court certified the clas as all auto, residential, and catastrophic damage adjusters for GEICO in Massachusetts between October 2018 and March 2021.

 

Day v. GEICO: GEICO Profited off Pandemic by Charging Excessive Premiums

 

According to the recent class action lawsuit Day v. GEICO, GEICO profited from the COVID pandemic’s stay-at-home restrictions by charging excessive premiums despite a drastic decrease in car accidents and car accident claims.

 

The main plaintiff, Jessica Day, claims that GEICO misled customers about how much they could save through a GEICO insurance policy. 

 

GEICO reportedly offered a Giveback credit program intended to pass pandemic savings on to customers. And according to Day, these advertisements about savings encouraged her to renew her auto insurance policy.

 

Those benefits were allegedly never passed down to customers, though.

 

Stokes v. GEICO: GEICO Attempted to Keep Reimbursements After Injuries

 

In this past class action lawsuit, plaintiffs alleged that GEICO received reimbursements for costs paid to insured customers without first obtaining an order or agreement that their customers were “made whole”. 

 

In other words, GEICO reportedly received subrogation (reimbursement) payments for MED Pay/PIP payments.

 

This case eventually settled for approximately $517,206.30, giving eligible class members up to 100% of the funds reimbursed to GEICO.

 

We Aggressively Pursue GEICO Accident Claims and Lawsuits

 

Our firm handles personal injury claims against GEICO and other insurers. And we have helped many accident victims and their families obtain fair compensation.

 

If a driver insured by GEICO struck you and caused harm, we want to help you get a maximum payout from GEICO.

 

Contact us today for a free consultation. See why other attorneys and past clients have voted us Virginia’s best lawyers for traumatic brain injury, whiplash, and spinal cord injuries resulting from motor vehicle collisions.

 

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