Lawsuit claims the insurance giant has routinely violated the terms of its auto policies
A lawsuit filed by Leif Hansen, founder and owner of Leif’s Auto Collision Centres, on behalf of GEICO customers claims the insurance giant has routinely violated the terms of its auto policies by refusing to pay for essential and critical vehicle repairs.
According to the lawsuit, which is seeking class-action status, GEICO has a nationwide, longstanding policy and practice of refusing to pay for electronic vehicle scans, which help determine the safety and repair status of a vehicle.
On average, these scans cost $100 and are required or recommended by nearly all major auto manufacturers to ensure auto repairs are safe and complete.
Consumer advocate and auto repair shop owner Leif Hansen is the lead plaintiff of the lawsuit, filed in US District Court.
The lawsuit seeks damages for losses incurred by all current and former GEICO policyholders that have suffered collision losses in the past six years.
“This is about seeking justice for the millions who have been bullied into claim settlements.
Many are left without appropriate compensation and may be unknowingly driving unsafe cars,” said Leif Hansen. “As many consumers already know, airbags, steering, braking and accident avoidance systems can be compromised after a collision. Electronic scans play a critical role in ensuring that vehicles are safe to drive.”
The lawsuit alleges GEICO used its superior knowledge and bargaining position to deprive policyholders from receiving the full benefits of their insurance policies.
“Astonishingly enough, GEICO actually may not know how many unsafe cars they’ve put back on our roads. However, they certainly know how many millions of dollars they’ve saved by not finding out,” said attorney Steven Olson, who is representing Hansen.