Auto Insurance Claims: EUO / geico, EUO GEICO

Question
Hi Justin
I filed a stolen car claim.  car was found and totaled, 2002
sebring $2500 value. Geico sent me a EUO letter and suspects my claim is false, if I drop the claim what are the consequences from geico.  

will they try to legally prosecute me?  will they drop me or
raise my rates?

if i drop the claim does that cancel the EUO meeting?


1.  what are these Geico euo examinations like?

2.   should i hire an attorney, i'm not that good at being
   questioned by people.  i think its an anxious setting.

   whats your experience?  Im 69, disabled veteran and i
   dont need the stress.  im in florida and the eou meeting
   is Jan 14, 2016.

   thanks for your time and advice.  Merry Christmas !  joe

Answer
An examination under oath is a tool used to scare people into dropping their claim.  If you are scared to go get questioned under oath and you drop the claim, then that is the end of it, especially for a claim that is $2500.00.  I can't tell you how many times I just KNEW somebody was committing fraud, but couldn't get anybody to prosecute.  

There are a lot of politics involved in SIU investigations (which I have conducted).  There is no way a district attorney is going to invest their time in prosecuting a 2500 alleged insurance fraud claim.  Additionally, it is very very difficult to prove fraud and takes lots of man hours and lots of research and investigation and cooperation from the purported fraudster.  

They will ask questions about whether you owed money on the vehicle or were in financial trouble and things about where you were when the vehicle was stolen and essentially try to nail down facts that are "material" to fraud.  I don't think I have enough room to go into all of it here, but I will say that in the vast majority of cases where an EUO is requested, it is because of some adjuster's ego.  I could have requested an EUO on every claim if I wanted to, and it would have likely reduced the claims that were presented (which is the main point).  If you are innocent, fight and go do the EUO and don't worry.  If you are guilty, dropping the claim now is what they want you to do and why they are conducting the EUO.  If you are guilty, I doubt that GEICO has the talent to prove it.  They suck and generally hire incompetent staff that they can brainwash.