Car insurer GEICO is facing a class-action lawsuit alleging it doesn't honor its accident-forgiveness policy, which promises to not raise a customer's premiums after their first at-fault accident.
The lawsuit, filed Feb. 25 in Texas, alleges GEICO unlawfully disguises premium increases after the first at-fault accident as "surcharges" or other terms, ClassAction.org reports.
The lawsuit said it represents a Dallas resident, Christoper Cude, who alleged he got a policy-renewal notice one month after his wife got into a minor fender-bender accident, which was the first she was at fault for.
The plaintiff's premium rose to $2,663 from $1,392, an increase of more than 91%, after he was told by GEICO they had "merely applied a surcharge," the lawsuit said.
GEICO didn't immediately respond to ConsumerAffairs's request for comment.
The lawsuit aims to represent any Texas residents insured by GEICO whose premiums rose after their first at-fault car accident.
Lawyers from Steckler Wayne & Love Law are handling the case and can be reached at bruce@stecklerlaw.com, austin@stecklerlaw.com and judgestickney@stecklerlaw.com.