Oregon Man Claims GEICO Refuses to Pay for Electronic Scans After Vehicle Repairs

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Government Employees Insurance Company (GEICO) is facing a proposed class action lawsuit that claims it violates the terms of its insurance policies by refusing to pay for electronic scans of policyholders’ vehicles after repairs. The plaintiff alleges his 2017 GMC Sierra 3500 pickup truck suffered damage to its bumper after a collision for which he submitted an insurance claim. According to the suit, GEICO refused to cover a post-repair electronic scan of the vehicle, despite being required under the plaintiff’s policy to compensate him for all repairs necessary to return the car to its “pre-loss condition.”

The plaintiff argues that the scans, which cost about $100 each, are necessary for detecting potentially unseen problems that could present safety risks. General Motors allegedly stated that “[e]ven minor body damage or glass replacement may result in damage to one or more safety-related systems on the vehicle.”

“Without the electronic scans,” the complaint reads, “damage to the policyholders' vehicles goes undetected; system problems go unexplained; and GEICO puts unsafe cars back on the roads.”