Staten Island, New York Child Injury Lawyer Blog | Brooklyn Child Accident Attorney » GEICO http://nyinjurylawupdateblog.com Insight and Commentary for Parents and Guardians about Child Injuries and Safety Tue, 12 Jan 2010 18:33:55 +0000 http://wordpress.org/?v=2.8.5 en hourly 1 Can Auto Insurance Companies “Discount” Basic Benefits? http://nyinjurylawupdateblog.com/can-auto-insurance-companies-discount-basic-benefits/ http://nyinjurylawupdateblog.com/can-auto-insurance-companies-discount-basic-benefits/#comments Thu, 29 Oct 2009 20:41:37 +0000 Frank Dito http://nyinjurylawupdateblog.com/?p=425 With the proliferation of online car insurance, consumers aren’t always aware of what insurance they are getting for their money. Most people I speak with tell me that they purchased their car insurance based upon price alone and didn’t compare the benefits between different policies. Aware of the price competition, insurance companies are doing their best to shave every dollar in order to gain you as a customer. One company in particular, GEICO, has allowed their customers a “discount” for New York Work Loss. This discount, on the policy that I have viewed, amounts to $9.40. What most people don’t realize is that the “discount” takes away certain basic benefits that the New York State Legislature intended you to you receive in the event you were injured in a car accident and could not work.

After I applied for lost wage benefits on behalf of my client, I received a denial based upon my client’s election of the “discount.” I felt that although the client did receive the discount, GEICO couldn’t reach such an agreement without violating the insurance law. Research disclosed a 2002 New York Department of Insurance General Counsel Opinion that addressed the exact question. The Opinion states that “New York State Law specifies the minimum requirements for motor vehicle financial security coverage as a matter of public policy.” Based upon this Opinion, I have filed for Arbitration to recover my client’s lost wages.  Besides the, fact that a $9.40 discount cost my client over $12,000, insurance companies cannot be allowed to interfere with the legislatures intent. The benefits enacted as law refers to them as “basic” and as such are legally mandated. The matter is currently in Conciliation with GEICO’s response due by 11/20/09. I will provide updates on this case as they become available.

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