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

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption