Don’t Let GEICO Or Other Insurance Companies Take Advantage Of You After A Car Wreck

Insurance claim forme

Here are today’s two lessons from a court decision yesterday:  (1) Take your time before settling your case.  (2) Talk to a lawyer before settling a case.

I often warn victims of car wrecks or other accidents to be aware of insurance companies’ “swoop and settle” tactics.  In these situations, the insurance company (GEICO seems to be the worst) contacts you immediately after a wreck and makes an immediate settlement offer to try to get you to give up your rights before you know how bad you are hurt or before you know your rights.

Yesterday, the Dallas Court of Appeals handed down a new case that shows just how this terrible practice works.

In the case, Windell Gilbert was injured in a car wreck.  GEICO was the insurance company that covered the driver who caused the wreck.

Eight days after the wreck, GEICO called and suggested to Mr. Gilbert that they settle the case for GEICO’s payment of the medical expenses incurred on the date of the accident (which totaled $4,806.75) and $500.00 to Mr. Gilbert.  Mr. Gilbert agreed, and the GEICO representative had them do a recorded call confirming that settlement.

Not surprisingly, but Mr. Gilbert ended up being hurt much worse than he thought.  He went to a doctor and had over $15,000.00 more in medical expenses.

Mr. Gilbert later sued the other driving, arguing that the first settlement was unfair.  But yesterday’s opinion held that Mr. Gilbert and GEICO had a binding agreement and that Mr. Gilbert was bound to the $500.00 agreement.  Moreover, the court awarded GEICO (through the other driver) $10,000.00 in attorneys’ fees against Mr. Gilbert.

This case is a perfect example of why car wreck victims should wait to talk to an attorney and to take a little time before settling a case.  Initially, even if Mr. Gilbert wasn’t hurt more than just needing medical care on the first day, the offer from GEICO was a terrible offer.  But more importantly, people are often hurt more than they realize.  Problems linger or don’t show up until later.  I typically advise my clients that in most cases, you shouldn’t settle until you know you’re better or until a doctor tells you you’re not better, but you’re as good as you’re going to get.

So remember the lessons for car wreck (and really all injury) claims. Don’t settle too early, and don’t settle without talking to a personal injury lawyer.

 

 

Insurance Recorded Statement: Beware This Seemingly Innocent Question

 

 

“If we get some of your bills, do we have permission to pay your medical providers directly?”

That’s a question that I’ve started seeing when GEICO takes recorded statements of some of my clients (and I can only assume that other insurance companies will follow behind).  It seems innocuous.  The client says, “yes.”  Of course, that would be great.

It’s terrible.

Agreeing to this simple request can really hurt your accident claim.  Why?

Medical expenses are funny.  For most medical providers, there are at least two numbers for medical bills.  First, there is the “rack rate” — the full price rate that the medical providers try to charge those without insurance.  Second, there is the “insurance rate” — the contractual rate that the medical provider and health insurance companies agree is a proper charge for a particular service.  (And in reality, these insurance rates can be different for every different health insurance company, Medicare, Medicaid, and so on.)

Which rate is charged, has an impact on your case.

By offering to pay the bill directly, GEICO and other carriers are trying to get permission to go to your medical providers and try to cut your case out from under you.  They’ve paid something they’re going to have to pay anyway, often at a lower rate than you would be able to recover from them, and in the process, they’re decreasing the value of your claim while decreasing their risk.  It’s all good to them.

It’s also taking money out of your pocket.  If hospital A has a $10,000 bill but is willing to accept $7,500 (and I’m making these numbers up), then if GEICO pays the hospital directly, it saves itself $2,500.  However, if the lawsuit goes forward and GEICO has to pay you, the client, the $10,000 and then you pay the hospital the $7,500, then that $2,500 savings goes to you and not the hospital.

So agreeing to this seemingly innocent request is costing you money!

There are a number of ways that an insurance company can use a recorded statement to its advantage.  While this is a relatively new tactic, it’s not the only tactic.  We always tell our clients that they shouldn’t agree to a recorded statement without having a lawyer present to help protect the clients’ rights.

If you or a loved one has been in a car wreck and have been contacted about a recorded statement, please call us at (512)476-4944 and let us help you before that statement occurs.

 

 

Insure.com’s Rating of Best Auto Insurance Companies

This week, Insure.com, the self-proclaimed independent consumer insurance website, released its list of Best Insurance Companies based on customer satisfaction rankings.  The company surveyed 3,835 customers of 15 large insurers in auto, home, and health insurance, and 14 in life insurance.

The survey asked about:

  1. customer service
  2. claims satisfaction
  3. value for price paid
  4. percent who plan to renew
  5. percent who would recommend the company

Based on their responses, the top auto insurance companies were:

  1. USAA
  2. State Farm
  3. Farmers
  4. GEICO
  5. Auto Club of Southern California
  6. Nationwide
  7. Liberty Mutual
  8. Allstate
  9. American Family
  10. The Hartford
  11. Erie Insurance Group
  12. Progressive
  13. MetLife
  14. Travelers
  15. Mercury General

It’s important to note, having sued drivers covered by most of these companies, I would have a different ranking.  My ranking would largely be focused on what company is most reasonable in willing to admit when their drivers caused a problem, and who are willing to protect their customers by making fair settlement offers when their customers do something wrong.

Using my criteria, I’d put USAA, GEICO, Liberty Mutual, and Hartford in a top group.  I’d put MetLife, Nationwide, Travelers and State Farm in a middle group.  I’d put Farmers, Allstate, Progressive, and Mercury in a bottom group.

My criteria is certainly different than that used in the survey, but I also think it’s an important perspective when you’re buying insurance.  Heaven forbid, if you do cause a wreck, you want to make sure your company protects you.  When the company doesn’t offer enough and forces a lawsuit to be filed against you, then that’s likely the insurance company not doing its job.

Perlmutter & Schuelke, PLLC maintains offices in Austin, Texas. However, our attorneys and lawyers represent clients throughout the state of Texas, including Dallas, Houston, San Antonio, Forth Worth, El Paso, New Braunfels, San Marcos, Kyle, Buda, Round Rock, Georgetown, Lockhart, Bastrop, Elgin, Manor, Brenham, Cedar Park, Burnet, Marble Falls, Temple and Killeen. By Brooks Schuelke


Law Firm Website by CLM Grow