GEICO Sued by Oregon Autobody Shop Owner

As an independent small business owner, we at Johnny’s Custom Autobody sympathize with real life David and Goliath stories.  Here’s one we understand extremely well.  Because we’re an independent autobody shop too….we face similar challenges every day with MULTIPLE insurance companies.  Though we seldom share our battles with you, we feel compelled to tell you about this one. Here are news excerpts from multiple sources on this case:

Oregon MSO Files Lawsuit Against GEICO – FenderBender

Leif’s Auto Collision Centers, a two-shop network (formerly 11 shops) in Oregon, has filed an antitrust lawsuit against GEICO for “cutting corners and making unsafe repairs.”

The court filings allege GEICO engaged in a conspiracy beginning no later than 2014 with a small group of auto body shops in Portland to provide incomplete repairs in return for a promise of consistent referrals.

“The purpose of these agreements is to maximize GEICO’s profits by causing its automobile policyholders to accept unsafe and incomplete repairs,” according to the lawsuit filed in United States District Court.

“As the lawsuit explains, this is a classic hub-and-spoke conspiracy where a big industry giant bullies its way to higher profits,” said Steven Olson, attorney for Leif’s. “Many Oregonians will be surprised to learn that they are driving unsafe cars as a direct result of GEICO’s backroom dealings with repair shops.”

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CNN’s Drew Griffin investigates claims that some insurance companies are skimping on repairing damaged vehicles to pad their profits. – Anderson Cooper 360

Class-Action Lawsuit Hits GEICO Over Unsafe Repairs – Autobody News

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.

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 Dec. 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” ~ 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.”

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Ore. shop sues GEICO, claims DRP creating antitrust conditions… – RepairerDriven News

A Portland, Ore-area collision repairer sued GEICO Tuesday on Sherman Antitrust Act grounds, alleging the carrier is conspiring with its Auto Damage Xpress direct repair program auto body shops to fix prices and boycott the plaintiff.

Leif’s Auto Collision Centers v. GEICO is similar to litigation the auto body shop filed in 2014 against that insurer and many others as part of the multi-state litigation pitting dozens of shops nationwide against carriers on steering and antitrust grounds. Leif’s dropped many smaller carriers as defendants in 2015, but left GEICO and some of the other major players named in the case.

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Leif Hansen (businessman) – Wikipedia

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