GEICO Paid Out A Fraudulent Claim

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I had written a post in which I talked about some companies I love and one of them was GEICO, mostly because they were cheap, and bostonmichelle left the following comment:

You like Geico only because you’ve never had a claim or any other problem. Someone put in a fraudulent claim against me, and [Geico] just went ahead [and] paid them even after:

  1. I submitted professional photos (at a claim shop) documenting the total lack of damage to my car.
  2. I submitted my own photos of my car backed up against a truck of the exact same model of the claimant’s to show there was no way my little car could have damaged his huge truck’s back bumper, and
  3. I spent 2 hours on the phone with various people there begging them to look at the photos and tell me how I possibly could have caused that damage.

So, they pay anyway, and my insurance record gets dinged cuz they did so. I had to pursue this case because there was NO WAY I was going to pay higher insurance because they are so stupid. After spending many hours talking with MANY stupid, lazy people at Geico, I finally get a guy whose wife had a fraudulent claim against her. HE got it and fixed my insurance record. It still showed they paid out, but I was now shown as “not at fault.”

Idiots. I’ve gotten the best deal and the best service of my life going through Costco (one of your other favorites). They use Ameriprise, which has been wonderful so far. Plus, you can pay your premiums with a credit card. I bet you could save even more money with them – plus you won’t risk your sanity, insurance record, or finances should you actually need to use your insurance.

I was pretty surprised to hear this mostly because insurance companies aren’t in the business of paying out a lot of money needlessly, they’re usually on the other extreme, looking for ways to get out of paying for something. So I asked for more details and bostonmichelle provided:

The claim they paid was about $450. It sure would have been cheaper to listen to their customer and not the claimant (they lost me as a client immediately, and I’ve been telling my story ever since), but I’m sure they had their reasons.

There was no police report since we both agreed at the time that there was no damage. I hit the guy while I was rolling from a standing stop – about 1 or 2 miles per hour. He had a dented bumper on his tall SUV, but my bumper (on my short little Sentra) was far too low to do that damage. I had hit his tow package hanging down below his bumper. We both agreed there was no damage. Neither of us had a camera in our cars.

He later sent me a quote for $700 or so from a repair shop. It listed his make & model, so I went to a dealer who let me park up right next to the back of the same model and take photos. I had clearly hit the tow package. If he had no tow package, the front of my car would have gone clear under his truck, which certainly might have damaged MY car -but not his.

I sent those pics in AND I went to Geico’s claim shop which put a measuring tape on the front of my car and took their own pics. There was absolutely no damage to my car at all. They sent those pics in. When I talked with the various Geico people, most didn’t have access to the pics. And, no one WITH access ever called me back.

The one guy who helped me knew what it was like to have a fraudulent claim. He didn’t see the photos either. He just had been through it himself and was sympathetic. I don’t know the insurance business, so I can’t answer your questions any more than that. You can post this email if you like. Anyone who wants to help share the pain of dealing with Geico on a claim is doing a good deed, that’s for sure.

By the way, I have NEVER had an accident – one that was my fault or someone else’s. And, I’m 36 and have my license for 20 years.

Again, I would get the hell out of there, if I were you. At least look into Costco’s service. I think you’ll be pleasantly surprised.

Basically it sounds like the person she hit pulled a fast one on Geico and they fell for it, leaving bostonmichelle holding the bag. While you can’t do anything after the fact, this is why it’s crucial to keep a camera nearby (nice if you have a cell phone camera) to take pictures at the scene of the accident in order to have some sort of proof. Your word is nice but evidence is nicer.

{ 40 comments, please add your thoughts now! }

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40 Responses to “GEICO Paid Out A Fraudulent Claim”

  1. Tim says:

    I just called Gieco today to get a quote. Rep I spoke with was very polite. We went over my current Auto Ins policy in detail. He quoted me the “same” policy, with a lower deductable. Was going to save me about $400 a year on a 3 car policy. I set it up. Received email policy a few mins later to find that he has completely left off ANY Collison or Comp off one one of my 2 cars that are paid for. Guess what, this is the car my almost 17yr old daughter drives.
    I called back when I caught this. Was told they did not know why he did this, the ACTUAL premiums for the same coverage on all 3 cars turned out to be a couple hundred dollars MORE than I currently pay.
    Not only was this misleading and a lie to me, but if I had not of caught this and had an accident that was our fault, then that car would not have been covered at all.
    I called back, could not speak with a supervisor, although was told that one was informed.
    Cancelled policy and will stay with my long term insurance company that I can TRUST. This was so misleading that I would imagine it was against the law.
    Was very disappointed in GEICO.

  2. yusef says:

    it’s true baby girl. you admitted fault. i hit a car from behind and it was my fault. the next thing you know the guy said he swerved and hit something that messed up the side of his door. because i was at fault for the accident i had no leg to stand on. anything is possible when you are in an accident.

  3. Joe White says:

    I’m in a claim now with Geico. Got hit by the other car when my Girlfriend was driving/stopped at a corner. The other driver was obviously at fault and Geico agrees. However, since both cars are covered by Geico… Geico is refusing to pay for majority of the damages. My girlfriend’s statement is that the other car an Xterra rear ended our small Tiburon hopping our bumper and knocking in our hatchback. Geico is refusing to believe it specifying height specs. Looks like Im going to be stuck with a hatchback that doesn’t close properly. Going to shop around for insurance as soon as the claim is complete.

  4. ago says:

    I have Geico and I worked for Geico. They are a horrible employer but a good insurance company. I worked liability and if you hit the person it doesnt matter what minimal damage they have Geico would be liable for it. The auto adjuster that inspect and write up the estimates go threw very thourough training. And you bet if Geico could deny it they would’ve. Alot of times the damages may not be visible or very minor, again Geico or any insurance company would be on the hook for it. I got rear ended as I was stopped waiting to exit a parking lot. We both got out saw no damage. When I went home and looked under my there was damage. This is true of all insurance companies, they have to investigate the loss and if you are liable for the damages must pay. All insurance companies have to follow regulations. Its better that they pay than have the person pursue personally for damages that your insurance company wouldnt pay. Ive seen that happen alot, dealt with many shady insurance companies that due that and leave there policy holders out to dry. That is why even thought I hate them as an employer, I keep them as my insurance. They are also backed by Warren Buffet thats a billionaire! So you know they can back up there policys with $$$$. Alot of companies are having financial difficulties and are unable to pay claims!!!

  5. ago says:

    When its Geico vs Geico they take a very strong stance on treated it as if it were any other insurance comp. The one examiner doesnt have access to the other file. If they are not paying for the full amount its probably because the other Geico insured has a conflicting ax description. If there is no pr or witnesses to confirm either drivers statement its usually settled 50/50. Most companies won’t even give you that. they just deny the claim. If they are offering less than the full amount you need to call the examiner and ask why. if you have any additional info or evidence they will re-val the claim. NY is a comparative negligence state by law meaning in most accidents negligence is shared so you can be found even a minimal percentage of liable for the accident so the full amount of your damages would be paid accordingly to the insured negligence. so if you get rear ended and the other driver said you stopped short, you would be found partially liabe for the accident normally 10% and the other driver would be 90%.

  6. Mukund says:

    How much geico is liable to pay for maximum if driver hit a person on walk and injured the person to paralyze limbs?

  7. Vilear says:


    How did you go about getting clarity on your insurance claim…i was very much in the same situation. I had a storage compartment on the roof of my car and it was tied down the winds were strong that day and with the pressure of the winds it snapped the rope flew off the top and scratched the hood of a truck but it was not an impacted scratched it was just like a black scuff and my insurance paid out $3000.00 and of course my premiums are now tripled compared to what they were and been wanting to fight this but just do not know how…have any incite for me ….


  8. markyMark says:

    Geico lied to me then settled the claim paying out to the other party who was actually at fault. But Geico never told me that they settled the case and paid out. I smell a rat at Geico. GEICO is NOT trustworthy and will make you look like you are at fault because GEICO is afraid to have cases go to court. SCREW GEICO because they will sell you out to the other party and send you down the river without a paddle. Sure they will supposedly hire you a lawyer but that lawyer does nothing for you and Geico screws you in the end. Just when you need Geico they throw you under the bus. Forget Geico. Go find some other Auto ins.

  9. the funky bunch says:

    you smell a rat? geico snitched on you?

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