Auto Insurance Claims: geico, stolen car .... euo letter

Question
QUESTION: Hi Jane

I submitted a stolen car claim to geico.  my car was found and totaled. value about $2500.

Now geico wants to investigate. I would like an attorney to
withdraw my claim.  Its not worth the stress. What can I do?

Thanks.

ANSWER: Hi Joe,

You've paid your premiums, you should go forward with the claim.  Investigations of auto theft claims are not unusual. However the choice is yours obviously.  As for an attorney, you do not need one to withdraw your claim.  Simply call the adjuster assigned to the claim and tell them you wish to withdraw.

Regards,

Jane

---------- FOLLOW-UP ----------

QUESTION: Thank you, Jane

Geico 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.

    Paula, thanks for your time and advice.  Merry Christmas !  joe

ps.  this is a good thing you are doing !

Answer
Hi Joe,

Yes, obviously they suspect something.  However, auto theft claims are commonly referred for further investigation.  These referrals are based more on patterns and so-called red flags than anything else.

To begin - if there is something bogus about your claim, then it is to your benefit to withdraw it.  HOWEVER, if you are entirely innocent, if you simply a policyholder seeking benefit from the premiums you have paid, then I suggest you press forward with the claim.

EUO's are a common - and in my opinion - frequently abused tool.  Insurance companies who are set on denying claims see the EUO as a "clean" method to deny claims because if you fail to appear, they will simply deny your claim.  Done deal, clean ... on paper.

If it were me, and I wanted to collect my benefits, I would appear and fully cooperate with whatever they want.  THEY CANNOT DENY YOUR CLAIM BASED ON A HUNCH.  In order to deny, they need some type of legitimate evidence that you were involved in some type of fraud.  

Common areas of suspicion are overdue miles on a lease car, payments behind on a owned car, severe mechanical problems, and the worst in my mind - questions on the ignition system.  In other words, was your vehicle "theft proof".  Of course there is no such thing.  The point is, did you have some type of motive, and therefor would you benefit from "having the car stolen"?  But they need to prove that in order to deny your claim.

There are usually question pertaining to the keys.  Were you keys found in the vehicle?  If so why?  What is your explanation.  if this is the case, they will ask.  And if you've lost one of the keys, they will harp on that.  But just because you've lost a key doesn't mean you "stole" the car.  Again, they have to have evidence.

You should know by now and from the EUO notice where they are going.  

I suggest you cooperate fully and appear.  On an attorney, you can take one if you like.  The attorney has no "speaking part" but it is never a bad idea to take one, especially if you suspect the insurance company is treating you unfairly.  Of course you'll need to pay for the legal counsel.

No one likes to face questions, but if you are completely innocent, then I suggest you attend.

On withdrawing a claim, that should simply end it.  Can they cancel?  No, not right away.  Possibly they could non-renew your policy.

Yes, this an anxious situation.  EUO's are stressful.  But you paid for the benefits, and you're entitled to them.  My opinion is that you go forward.


Good luck,
Jane