GEICO Denies COVID-19 Credit to Policyholders Who Don’t Renew: Consumer Group:
The Consumer Federation of California Education Foundation (CFC Foundation) called on the Department of Insurance to order GEICO to refund at least $210 million that it says it is overcharging auto policyholders who are driving less and filing fewer accident claims because of COVID-19.
In a Petition filed May 11, the CFC Foundation alleges GEICO is violating a Bulletin issued in April by Insurance Commissioner Ricardo Lara, which ordered automobile insurers to issue COVID-19 refunds and credits to policyholders for coverage during the months of March and April 2020. In stark contrast to other major auto insurers who have announced credits, refunds or discounts to their policyholders, GEICO is denying its 15 percent Coronavirus “giveback credit” to current policyholders who don’t renew their coverage between April 8 and October 7, 2020. Instead, GEICO is offering this credit to new customers who sign up for GEICO coverage.
“GEICO is violating the Commissioner’s Bulletin and the industry norm of giving a break to customers who are driving less and who desperately need financial relief right now,” stated Richard Holober, CFC Foundation Director. “GEICO found a way to take advantage of a human tragedy to launch a new marketing scheme,” Holober stated. “GEICO must change course and offer immediate relief to customers who are driving less, with no strings attached.”