Geico “Deny, Delay, Defend” Tactics Praised by Warren Buffett
Millions of people are familiar with automobile insurance company Geico because of its memorable television commercials featuring a talking gecko. Unfortunately, not enough people are aware of the Geico “deny, delay, defend” tactics that are used to increase company profits by deceiving its customers. These deceitful practices were recently praised by Berkshire Hathaway (Geico’s parent company) Chairman and CEO Warren Buffett.
In a letter to Berkshire Hathaway shareholders, the billionaire CEO noted that the company’s insurance holdings led to “$73 billion of free money to invest,” and “a $1.6 billion underwriting gain.” He named Geico as the top performer and callously noted, “This is truly having your cake and eating it too.” While generating profits is the goal for most companies, Geico has been immensely successful by employing unscrupulous practices against its customers that have been in car accidents.
What Is Geico Deny, Delay, Defend?
The Geico deny, delay, defend strategy is designed to make Geico insurance policy holders accept no money or less money than they’re entitled to in a car accident settlement. The Legal Examiner pointed out that Geico management rewards employees for denying claims, even if they’re legitimate. After all, the more claims that are denied, the more money Geico and Berkshire Hathaway make.
The Geico deny, delay, defend ploy works like this:
- Deny: Agents will do everything in their power to deny the claim on behalf of the company, instead of doing what’s right for their customers.
- Delay: If a customer insists a claim is legitimate, agents will stall as long as possible hoping that the customer will let the matter go or accept a settlement that’s lower than what they deserve.
- Defend: Agents will defend their denials and delays aggressively, giving their customers no recourse but to file litigation. Due to intimidation, many people will not file a lawsuit against enormous companies like Geico.
While Geico’s commercials project the image of a fun company that takes care of its customers and offers low prices, the practices behind the adorable gecko are sinister. As Buffett illustrated to his shareholders, this unfair practice used by Geico and many other insurance companies can lead to billions of dollars in profit.
Is Your Insurance Company Taking Advantage of You?
If you’ve been in a car accident and suspect that your auto insurance company is taking advantage of you, then contact Mike Brandner Injury Attorneys. Our team of skilled and knowledgeable lawyers are familiar with the deceptive tactics employed by car insurance companies. More importantly, we know how to successfully challenge them and win you the settlement that you’re entitled to.
You can reach Mike Brandner Injury Attorneys 24/7 by calling 504-345-1111 (Metairie), 985-345-1111 (Hammond), 318-515-1111 (Shreveport), or 225-500-1111 (Baton Rouge). You can also contact us through the Internet via LiveChat or our secure contact form. Don’t let your insurance company deny or devalue your legitimate accident claim! Contact us today.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.