You’ve heard the jingle where a certain insurance company claims to be “on your side.” Even if they don’t say it, every insurance company wants you to believe that they are on your side: they’ll handle your claims quickly, provide top-notch customer service, and will be there whenever you need them, day or night. That may all be true if you’re paying the premiums, but sadly this is not the case if you are injured in an accident and have to make a claim against someone else’s insurance. A recent case out of Columbus, Georgia demonstrates exactly how difficult insurance companies can be when settling claims.
Jury Finds Geico Acted in Bad Faith
The case discussed in the article involves a man who was injured while riding his bicycle in 2012 when he was struck by a vehicle. The driver was clearly at fault, and the victim did not have health insurance. The victim’s attorney offered to settle the matter for $30,000, which was the limit of the policy. Regardless of the driver’s obvious fault, Geico, who insured the driver, refused to settle the case for more than $12,000, just slightly more than the victim’s hospital bills. When the victim sued, he wound up with a default judgment because neither Geico nor the driver responded to the suit. Geico then tried to get the default judgment set aside, and later objected to the driver’s subsequent bankruptcy proceedings. When the case made it to Federal court, the jury awarded the victim $2.7 million dollars in damages, finding that Geico had acted in bad faith in refusing to settle the claim.