GEICO, one of the nation’s largest auto insurance providers, is facing significant legal challenges in the form of two proposed class action lawsuits. These suits, filed in California and Texas, accuse the company of deceptive practices regarding its marketing of car insurance policies and failure to honor its accident forgiveness program, potentially affecting thousands of consumers.
Misleading “Full Comprehensive” Coverage
The first lawsuit claims GEICO has engaged in what it describes as the “most substantial ‘bait and switch’ marketing campaign in the history of consumer auto insurance in California.” Filed in California, the lawsuit accuses GEICO of misleading consumers into purchasing insurance policies under the belief they were getting full coverage, when in reality, they were only receiving liability insurance without collision coverage.
The suit alleges that GEICO frequently promotes its policies using the slogan “15 minutes could save you 15% or more on car insurance,” leading consumers to believe that switching to GEICO would provide them with equivalent or better coverage. According to the lawsuit, the company offers a “full comprehensive package” to customers who request an “apples-to-apples” comparison of their current policy. However, this package is allegedly a liability-only insurance policy, leaving out collision coverage, which protects the policyholder’s vehicle in the event of an at-fault accident.
The lead plaintiff in the case claims he was misled into purchasing what GEICO marketed as a “full comprehensive package,” only to discover after an accident that his policy did not cover collision damage. As a result, GEICO allegedly denied his claim for repairs to his vehicle.
The lawsuit also claims that GEICO’s use of the term “comprehensive” creates confusion among consumers, many of whom mistakenly believe the term means a complete, all-encompassing insurance policy. Despite complaints from both employees and customers, GEICO allegedly continued to market the product without providing clear and accurate information about what was covered.
See lawsuit documents here:
Failure to Honor Accident Forgiveness
In a separate lawsuit filed in Texas, GEICO is accused of failing to honor its accident forgiveness policy. This policy promises that customers will not see an increase in their premiums after their first at-fault accident. However, the lawsuit claims that GEICO routinely raises premiums for such customers, disguising these increases as “surcharges” or using other misleading terms.
The plaintiff in this case, a Dallas resident, alleges that his premium increased by 91.3% following a minor accident involving his wife, despite being enrolled in GEICO’s accident forgiveness program. The policy renewal letter reportedly stated that the premium increase was due to a surcharge, not an increase in the base premium. The lawsuit argues that GEICO’s actions violate the terms of the accident forgiveness policy and mislead customers into paying higher premiums after their first accident.
This case seeks to represent individuals in Texas who have been affected by similar premium increases after their first at-fault accident, despite having accident forgiveness coverage.
See lawsuit documents here:
What’s at Stake?
Both class actions have the potential to affect a large number of GEICO customers. The California lawsuit seeks to represent individuals who purchased the “full comprehensive package” but were misled about the coverage provided. The Texas lawsuit, meanwhile, targets GEICO customers who experienced premium increases despite being promised accident forgiveness.
These lawsuits highlight ongoing concerns about the transparency and fairness of insurance companies’ practices, particularly regarding marketing tactics and claims handling. The cases could have significant financial implications for GEICO if the plaintiffs are successful in proving that the company engaged in deceptive practices or failed to uphold its promises.
How to Join the Class Action
If you are a California resident who purchased GEICO’s “full comprehensive package” and did not receive collision coverage, or a Texas resident who experienced a premium increase despite having accident forgiveness, you may be eligible to join one of these class action lawsuits. Typically, you do not need to take any immediate action to join a class action suit; if you are included, you will be notified if and when a settlement is reached, with instructions on what to do next.
Consumers who believe they have been affected by GEICO’s practices should seek legal counsel to explore their options for participating in these lawsuits. Both cases could set important precedents in the auto insurance industry, holding companies accountable for their marketing tactics and ensuring that customers are not unfairly charged.
