Geico Sues Michigan Woman For Unexpected Reason After She Files Claim

Imagine you get hungry and decide to hop into your car to go grab a bite to eat. Along the way, however, you're T-boned by another vehicle. Naturally, you need to file a claim with your insurance provider, so you expect a mountain of paperwork, a lot of back and forth, and potentially a lawsuit. The last thing you would expect is for the tables to turn on you, making you the defendant and your insurance provider the one filing the lawsuit. Well, that's exactly what a woman in Southfield, Michigan says happened to her.

Weeks after Cari McCaskill went through the procedure of submitting a claim, which included a police report, she reportedly received a letter in the mail. "It was letting me know that the claim had again been reviewed and they were not going to pay out the claim," she told Local 4 of Michigan. "[T]hey were canceling out my policy, retroactive to the last renewal date." As reported by the outlet, this was because she didn't list her 12-year-old daughter on the personal injury protection attestation.

The general public doesn't view many insurance companies favorably, and Geico ranks pretty low per  Consumer Reports. It's unclear if Geico is in the right because the insurance policy McCaskill signed hasn't been made public. As of this writing, Geico hadn't provided a statement on the matter publicly, only telling the outlet, "We are unable to comment on pending litigation."

This isn't the first time Geico has been accused of engaging in bad-faith practices. In 2018, a jury in California found the insurance company guilty for breaching contract and inflicting emotional distress. The charges came from a case in which the company did not pay out a man's claim after a car accident in 2009 left him disabled. The claimant had to undergo $125,000 worth of surgeries and fight a six-year legal battle with the insurance company. 

As of this writing, Geico was also at the center of a class action lawsuit alleging the insurer raised premiums for policyholders who were involved in an at-fault accident, despite being assured that they were protected under the company's accident forgiveness program. This meant they wouldn't have to pay the surcharge for their first at-fault accident. When claimant Christopher Cude renewed his policy and saw his premiums over 90% higher, he reached out to find out why. 

In response, Geico allegedly told him that a surcharge was applied. According to Top Class Actions, "The plaintiff is seeking certification of the class action, damages, fees, costs and a jury trial." You usually expect things like at-fault accidents to spike insurance costs, but not after being assured the first one won't.