So last year, I had an accident with a bicyclist in NYC. The bicyclist was going the wrong way in traffic, wasn’t wearing a helmet, and hit my car. Geico said I wasn’t at fault (I have dashcam footage to back it up), but the bicyclist wasn’t happy and decided to sue me. In the end, Geico settled for the bodily injury, which was $50k. I found out the bicyclist had a serious skull fracture and a deforming eyebrow injury.
I asked my claims team about the impact on my insurance rate and they didn’t give me a clear answer. They told me I’d have to wait until my renewal to find out.
I have a couple of questions, and I hope someone here can help.
Since Geico said I wasn’t at fault but ended up settling, does that change anything? Does it mean I’m at fault now? (I know NYC is a no-fault state, but I’m assuming this affects things.)
I didn’t think about hiring an attorney for the lawsuit since it was my first time dealing with this. My claims team said it was better to settle because going to court could’ve meant a much higher payout.
Does anyone know how much my insurance rate could increase?
How long will this stay on my record?
Thanks, everyone.
Edit: Thanks for the quick responses, I really appreciate it!
No-fault in NYC only affects medical expenses. It doesn’t change who is at fault for the accident. Geico settled to avoid a lawsuit, which is normal when they think the other side’s injuries might lead to big bills. A settlement doesn’t change the fault decision, but you’re protected now. As for your rates, unfortunately, the claims department can’t tell you. You’ll have to ask the service department, but even then, they might not know either.
If the case went to trial and a jury decided you were even slightly at fault, the costs could have been much higher. The $50k seems like a reasonable settlement, especially considering the injuries you mentioned.
Yes, your rates will probably go up, but no one can say for sure until your renewal. Sometimes things slip through the cracks, though, like when Geico didn’t raise my rates for 12 years after an accident. Maybe you’ll get a hike, or maybe not. Who knows? It might even hit you a few renewals from now. Just keep checking and worrying about it—maybe next year on August 28th it’ll hit.
The $50k was likely the limit of your policy. If there’s a payout like that, it’s a sign that your rates may increase, but it’s not certain. Prepare for it just in case.
Drew said:
The $50k was likely the limit of your policy. If there’s a payout like that, it’s a sign that your rates may increase, but it’s not certain. Prepare for it just in case.
Yeah, I asked my claims adjuster if I could expect an increase, and he didn’t have an answer. That’s why I’m asking here to get a better idea.
@Kim
Unfortunately, there’s no way to predict what your rates will do. Insurance rates are based on underwriting decisions, and we have no way of knowing what will happen. I’m sorry you had to deal with this. I had a similar situation where we settled because the other person’s medical bills added up to $100k, even though we weren’t at fault. You’re covered now, which is worth more than any possible rate increase.
In a no-fault state, it’s about medical benefits, not who’s at fault. Your insurance settled because the injuries were serious, and they wanted to avoid trial risk. Settling doesn’t mean you’re at fault. It’s just about risk management, and it’s a smart move for your insurance.
As someone who used to work for Geico, I can say that they will still pay out bodily injury claims even if they say you’re not at fault. They do this to protect you from being sued. As for your rates, insurance companies look at your claim history, and that could affect your premium, but it also depends on whether you have accident forgiveness or not. Your rates could go up, but they could stay the same too.
You need to call and make sure your claim shows you’re not at fault. Ask for a claims history letter confirming that this was a business decision and that you have no responsibility. If your claims rep says you’re even 1% at fault, you should fight it. Demand to speak to someone higher up if needed, but make sure they confirm you’re at 0% liability.
Actually, Geico can settle claims however they want, even if they don’t bring you into the decision-making process. They might tell you their reasoning, but the final decision is theirs. In your case, the injuries were serious enough that a trial could’ve ended with a much higher payout. $50k is cheap compared to what a jury could have awarded, even if you were only 1% at fault.