Geico Hit With Class Action Over Coverage Shortfall

Law360, New York (March 18, 2010, 3:16 PM EDT) -- Geico has been slapped with a putative class action that accuses the company of violating insurance contracts by refusing to inspect the damaged vehicles of policyholders for diminished value following accidents caused by uninsured motorists.

A Geico policyholder covered for uninsured motorist losses launched the suit on behalf of himself and others Wednesday in the U.S. District Court for the Western District of Washington.

Geico does not make good on its promise to cover “damages which an insured is legally entitled to recover” when the policyholder...
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