GEICO Insurance Companylied and told me I was required to sign up for medical covergae for auto insurance. SCAM!!! Denver Colorado
I had been a customer of Geico Insurance company for a while and always paid my bills on time. I felt I was a valued customer. I got laid off from my job and let my coverage lapse. I called them up a month later and tried to get my insurance re-instated. When I spoke with the GEICO representative she informed me that the laws in my state (Colorado) had recently changed and that I was now REQUIRED by law to sign up for medical coverage in order to have car insurance.She informed me that I was required to pay for the coverage for atleast 1 month and after that time if I wanted to cancel or "opt-out" of the overage I had to write a letter to GEICO requesting this. No doubt this strategy gets them out of paying out even less money than they already take in.
Anyway, this "requirement' sounded fishy to me so I told the woman I would have to call her back. After I hung up the phone I contacted a local insurance company in Colorado and inquired about this new "requirement" that the GEICO representative tried selling me on. I was informed that this was absolutely NOT the case in Colorado and there was no new state law requiring that I elect for Medical Coverage. The only new law in effect was that insurance companies in Colorado were now required to OFFER this coverage.
A person electing this coverage was still optional only. I was furious at the fact that this insurance company that boasts continuous record profits was trying to deceive me in order to make even more money. We all know that insurance companies get frantic and cancel your coverage if YOU dont pay them but the minute you have an accident and need the service you paid for to be rendered they start trying to find ways to NOT pay you back..In these trying economic times, the last thing we need is another GREEDY company lying to us to try and make an extra buck.....
Shackhouser
Morrison, Colorado
U.S.A.
1 Updates & Rebuttals
Geico Local Office
Boudler,Colorado,
U.S.A.
Department of Insurance Med Pay Guidelines per Colorado Insurance Commission Website
#2UPDATE Employee
Tue, May 12, 2009
NEWS RELEASE For Immediate Release - Dec. 4, 2008
Contact: Cameron Lewis, Division of Insurance, 303.894.2261 Chris Lines, DORA Public Information Officer, 303.894.7873
Med-Pay Coverage Begins in January for Colorado Consumers
A new Colorado law goes into effect Jan. 1, requiring insurance companies to include a minimum amount of medical payment coverage on all automobile insurance policies issued in the state.
Often called med-pay for short, Medical Payment Coverage is a type of insurance which provides at least $5,000 coverage for the insured driver and passengers to pay for injuries sustained in a car accident, regardless of who is at fault. Although the coverage is mandatory, there is a provision for consumers who do not want Med-pay coverage to opt-out in writing.
Med-pay coverage is designed to provide a resource to help cover the immediate medical costs, up to the limit purchased by the consumer, including first responder and emergency room costs, to an insured driver and passengers, regardless of responsibility for the accident. Without med-pay benefits, auto insurance policies may not cover medical costs for insured parties when injured in an automobile accident.
If you are hurt in an auto accident and have med-pay benefits included on the policy, your auto insurance company pays for the medical treatment up to the limit purchased. Med-pay coverage allows immediate medical payments for the automobile accident-related expenses.
Dora's Commissioner of Insurance, Marcy Morrison, said the additional coverage can help protect consumers at a time when they need it most. This law gives people the opportunity to insure themselves against the immediate costs associated with injuries from a serious car accident. There are significant costs associated with emergency services, including ambulances, emergency room doctors and medical procedures that are covered by med-pay, Morrison said. This means people who have this coverage can concentrate on recovery instead worrying about how the immediate bills will be paid.
All insurance companies must include the med-pay coverage with new and renewal policies, but consumers will have the option of rejecting this coverage in writing. Since insurance companies are providing additional coverage, it is possible that premiums will increase accordingly. There is no provision in the law restricting companies from increasing a premium when providing med-pay coverage. Drivers and passengers with med-pay coverage will have an additional layer of financial protection against medical bills incurred in an auto accident. But a consumer who does not want to pay the additional premium has the option of rejecting the coverage or may consider shopping around for a better premium.
Your insurance company should tell you what the premium amount is at the time you contract for insurance or renew your insurance policy. Consumers may reject the med-pay coverage in writing (or in the manner in which the policy application was taken.) If the coverage is rejected, the insurer must maintain proof that the insured party rejected the coverage for at least three years following the rejection. However, all drivers in Colorado are required to carry car insurance. Colorado requires minimum coverage limits of $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and a minimum of $15,000 of property damage liability.
DORA is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer protection is our mission. ###