GEICO Denied Defense to Billions Owed in Auto Repair ‘Scheme’

GEICO didn’t have a statutory right to sue auto glass repair companies the insurance giant claims are running a billion-dollar scam in Florida, the state supreme court ruled in an opinion shooting down the company’s attempt to go beyond the text of state insurance law.

The Florida justices agreed with a federal trial court and denied GEICO’s ability to sue under the state’s insurance laws in a bid to reject more than 1,000 bills from Glassco Inc., a repair company that outsources windshield fixes to subcontractors. GEICO claimed that Glassco’s business relies on not charging crash-victim customers, but passing on ...