Class-action lawsuit hits GEICO over unsafe repair

PORTLAND, Ore., Dec. 15, 2017 (GLOBE NEWSWIRE) -- A lawsuit filed by Leif Hansen on behalf of GEICO customers claims the insurance giant has routinely violated the terms of its auto policies by refusing to pay for essential and critical vehicle repairs.

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According to the lawsuit, which is seeking class-action status, GEICO has a nationwide, longstanding policy and practice of refusing to pay for electronic vehicle scans, which help determine the safety and repair status of a vehicle. On average, these scans cost $100 and are required or recommended by nearly all major auto manufacturers to ensure auto repairs are safe and complete.

Consumer advocate and auto repair shop owner Leif Hansen is the lead plaintiff of the lawsuit, filed December 13 in U.S. District Court. The lawsuit seeks damages for losses incurred by all current and former GEICO policyholders that have suffered collision losses in the past six years.

“This is about seeking justice for the millions who have been bullied into claim settlements. Many are left without appropriate compensation and may be unknowingly driving unsafe cars,” said Leif Hansen. “As many consumers already know, airbags, steering, braking and accident avoidance systems can be compromised after a collision. Electronic scans play a critical role in ensuring that vehicles are safe to drive.”

The lawsuit alleges GEICO used its superior knowledge and bargaining position to deprive policyholders from receiving the full benefits of their insurance policies.

“Astonishingly enough, GEICO actually may not know how many unsafe cars they’ve put back on our roads. However, they certainly know how many millions of dollars they’ve saved by not finding out,” said attorney Steven Olson, who is representing Hansen.

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About Leif Hansen: Leif Hansen is the founder and owner of Leif’s Auto Collision Centers and a recognized consumer advocate. He opened Olympic Auto in 1991 with one employee, which and founded Leif’s Auto Collision Centers in 1994. By 2014, Leif’s organization in Oregon and Washington was handling over 40,000 customers a year throughout its four divisions,

In 1994, Hansen uncovered a scheme where body shops were giving kickbacks to insurance companies in exchange for referrals. This inspired him to go to the Oregon Legislature to protect consumers from illegal steering practices. He was instrumental in passing Senate Bill 523, which requires insurance companies in Oregon to inform consumers that they have the legal right to choose where their vehicle is repaired. Under the law, insurance companies must inform consumers of their rights prior to making a recommendation for a repair provider. The law also prevents insurance companies from limiting reimbursement when consumers choose a repair provider without a referral from the insurance company.

Chris Edmonds (503) 342-7158 Chris@thinkhubbell.com