Insurance Holders vs GEICO
GEICO is being sued by one of its policyholders after they underpaid them and other customers when they filed a claim for their vehicular loss while they are under the insurer’s comprehensive coverage program.
Toni Akers filed a class action lawsuit against GEICO in early May this year, alleging that GEICO did not properly pay his and other customers’ fees during the comprehensive coverage policies period offered by the company.
Plaintiff Akers reportedly insured his car with GEICO under the company’s comprehensive coverage program. When he met a car accident more than two years ago, he filed a claim to the company for the damages incurred during the whole ordeal and to check how much he would receive as a part of his insurance coverage.
Due to the severity of the damages on the car which led to it being tagged by the insurers as a total loss, GEICO ended up paying only for the actual cash value of the car instead of covering the much more expensive cost to repair value. The determined value was pegged at more than ten thousand dollars at the time.
Insurance Fees Were Not Paid Properly
Per the policy’s terms and conditions, along with the mandated state and local regulatory requirements, GEICO ended up subtracting an amount called deductible from the determined value as part of the vehicle’s actual cash value.
Yet, the company ended up not paying enough for the other fees required by the law. It is alleged that GEICO systematically withheld such payments to cover the costs of replacing a vehicle of a policyholder.
Akers’ class action lawsuit is seeking to take GEICO in court on behalf of all Kentucky residents who own a comprehensive coverage policy with GEICO and got underpaid for all the necessary payments after they filed a claim for vehicular damages. He is also charging the insurer with counts of several violations of state regulations and breach of contract.
About the company
GEICO or Government Employees Insurance Company is a car insurance company under their parent organization Berkshire Hathaway. Based in Chevy Chase, Maryland, the company is regarded as one of the biggest automobile insurance providers in the United States. In fact, it is considered as the second largest behind leader State Farm.
Editor’s Note on GEICO Comprehensive Coverage Policy Class Action Lawsuit:
This news report aims to provide you the latest developments in the class action lawsuit filed against GEICO by a policyholder allegedly shortchanged of their insurance claims.
Case Name(s) & No.(s): Akers v. Government Employees Insurance Company; Case No. 2:21-cv-00060-DLB-EBA
Jurisdiction: United States District Court Eastern District of Kentucky Northern Division at Covington
Products/Services Involved: GEICO Comprehensive Coverage Policy
Allegation(s): GEICO supposedly ‘systematically and uniformly underpaid’ their policy owners’ insurance claims on their damaged vehicles under their comprehensive coverage plan.
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