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Complaint 35 of 36 in "Claim Denied or Delayed"

Insurance Carrier: Geico
State: Illinois

Consumer Complaint:

On 3/08/09, I applied for GEICO insurance and got a quote from them and also gave them my credit card information to purchase the policy. I got into an accident on 3/24/09 and when I went to pull up an insurance card from online GEICO said that I was not insured. They said my quote went up and that they sent me an email. I never received one email or one phone call telling me they did not process my card. They said once they start something online they like to finish it that way. I explained that I do not have access to internet every day and that they should've called. They now are denying my totaled car claim, but they do insure me now for my new car. I have every email from them saying that Iapplied to puchase the policy and that they would contact me if any problems arose and now my lawyer has told me to contact you as well as many other automobile insurers who I have contacted.

Insurance Expert Answer:

We will post your complaint.

Unless Geico charged your credit card it may take the position that there was no insurance in force as merely making an application does not bind them to accept it, especially if there are statements in your application which turned out to be misrepresentations. They'd say the mis-statements were the reason for the increase.

Your position would be that you had justifiable reliance on Geico, as they said they'd contact you if there were any issues (and the wording they used may be critical) and never effectively notified you, and mere email notification, which they know can easily be blocked by spam filters, is an inadequate way of communicating and they easily could have and should have attempted to call and leave a message.

This is a close one, but clearly Geico should have a more effective plan to communicate with applicants.