Can I bring a lawsuit against geico for accepting a fraudulent claim?

My mother was involved in a small car
accident that just caused a scratch on
another vehicle. Guy was by himself.
Car was his girlfriends dad’s car. Girl
filed a claim reporting bodily injury to
her autisic child, who wasn’t in the car.
Geico never investigated No one came
to look at my mothers car Geico
settled claim then told my mother about
it. No fault road. Mothers bill went up
50 plus.

Asked on December 23, 2017 under Insurance Law, Kentucky

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, you cannot sue the insurer for accepting the claim. The insurer has the legal right to settle claims if it deems that doing so is in its interest: it is not obligated to fight claims if in its judgment it believes that the cost of investigating and defending the claim, especially given the chance of losing and having to pay some or all of the claim anyway (no case is guaranteed; even if you feel you have a good defense, there is a chance you will lose) exceeds the cost of simply paying or settling the claim. You can't make them spend money on defense simply to possibly same your insurance rates later.
Your mother's best option is to contact other insurers and try to get better insurance pricing.


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