Lawsuits Over Deductibles on Uninsured Motorist Claims
Last Updated on July 3, 2019
Important Information
Attorneys working with ClassAction.org are no longer investigating this matter. The information here is for reference only. A list of open investigations and lawsuits can be viewed here.
At A Glance
- This Alert Affects:
- Anyone who was subject to a deductible after filing an uninsured motorist claim for an accident that was not their fault.
- What’s Going On?
- Allegations have surfaced that some auto insurance companies are illegally applying deductibles on uninsured/underinsured motorist claims.
- Has Anyone Been Sued
- GEICO has been hit with a class action lawsuit for allegedly applying illegal deductibles to uninsured motorist claims.
Attorneys working with ClassAction.org are no longer investigating this matter. If you have any questions about your legal rights, please contact an attorney in your area. The information below is for reference only.
If you had to meet a deductible after filing an uninsured/underinsured motorist claim for an accident that was not your fault, attorneys working with ClassAction.org would like to hear from you.
Your insurance company may have illegally applied this deductible – and you may now have a chance to get your money back through a class action lawsuit. Read on for more.
Charging Deductibles on Uninsured Motorist Claims: What’s the Problem?
Several states have laws in place that prohibit auto insurers from applying deductibles on uninsured motorist claims when the policyholder was not the one who caused the crash. Allegations have surfaced, however, that some insurance companies are imposing these deductibles anyway in violation of state law. GEICO has already been sued over the alleged practice – and it believed that other insurance companies are doing the exact same thing.
It’s suspected that these insurers are telling their customers that they’ll eventually pay them the deductible, which is typically a few hundred dollars, back. Despite collection efforts against the uninsured motorist, however, most insurance companies never recoup these funds and therefore never pay their policyholders back for the deductible. This is often because many uninsured drivers are “collection proof,” file for bankruptcy, and/or have no steady wages that can be garnished.
Further, it’s believed that even drivers who eventually get their money back from the insurance company are not compensated for lost interest on the allegedly illegal deductible.
How Class Action Lawsuits Can Help Motorists
Class action lawsuits can help drivers get back the money they spent meeting deductibles that were illegally imposed on them. Furthermore, a lawsuit could order auto insurers to change they way handle uninsured/underinsured motorist claims.
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