GEICO CLASS ACTION SAYS ELECTRONIC VEHICLE SCANS SHOULD BE COVERED
December 18, 2017
An Oregon man says GEICO needs to cover the cost of electronic vehicle scans to verify the repair of collision damage.
According to plaintiff Leif Hansen, defendant Government Employees Insurance Company has been denying insurance coverage for vehicle scans that are required or recommended by the manufacturer.
“Without the electronic scans, damage to the policyholders’ vehicles goes undetected; system problems go unexplained; and GEICO puts unsafe cars back on the roads,” the complaint reads.
According to this GEICO class action lawsuit, pre- and post-repair scans are a computerized check for diagnostic trouble codes. They can help identify necessary repairs before work begins, and afterward they can help confirm the repairs were successful. These scans cost about $100 each, Hansen claims.
Manufacturers like General Motors, Nissan, Honda and Toyota either require or recommend electronic scanning before and after repairs, Hansen says. He quotes a statement from General Motors insisting that vehicles be scanned, since even seemingly minor or cosmetic damage can impair some of the vehicle’s safety-related systems.
Hansen argues that by denying coverage for electronic scans, GEICO is violating the terms of its own vehicle insurance policies. These policies require GEICO to cover the cost of restoring the vehicle to its pre-loss condition, Hansen claims.
Hansen says his GEICO-insured 2017 GMC Sierra 3500 pickup truck suffered damage to its rear bumper in a November 2017 collision. He filed a claim with GEICO, brought the truck to a shop for repairs, and asked the repair shop to perform pre- and post-electronic scans on the truck.
But GEICO’s representative allegedly refused to authorize coverage of the scans, saying the company would not cover scanning unless a maintenance light was illuminated on the truck’s dashboard.
Hansen, as the owner of a group of auto repair shops, says he has seen GEICO deny coverage for scanning on several other occasions. He describes one occasion on which GEICO refused to cover scanning for one of his customers whose vehicle had problems with its airbag and steering systems.
GEICO has issued a written statement on the matter, saying it will cover scanning only if the vehicle’s manufacturer has issued its own written requirement for scanning for a particular make, model and year of a vehicle. Hansen counters that GEICO’s position will result in no coverage of scanning at all, as manufacturers don’t specify makes, models or years in such statements.
Hansen seeks to represent a nationwide Class of current and former GEICO vehicle insurance policyholders who suffered losses caused by collisions within six years prior to the filing of this GEICO class action lawsuit.
He seeks an award of actual damages, litigation costs, pre- and post-judgment interest, and any other relief the court sees fit to grant.
Hansen is represented by attorneys Steven D. Olson and Paul Conable of Tonkon Torp LLP.
The GEICO Electronic Scanning Coverage Denial Class Action Lawsuit is Hansen v. Government Employees Insurance Company, Case No. 3:17-cv-01986, in the U.S. District Court for the District of Oregon.
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