GEICO Added Strangers to Car Policies to Hike Charges, Suit Says

GEICO was hit with a proposed class action alleging it improperly added strangers as drivers to customers’ auto insurance policies, resulting in increased premiums.

GEICO violated its insurance policies and breached its duty of good faith and fair dealing by adding unknown individuals to customers’ policies without confirming they lived at the insured party’s address, according to the lawsuit filed Wednesday in the US District Court for the Middle District of Florida.

The insurer relied solely on information from consumer credit reporting companies to add the drivers, leading to premium hikes for customers, the proposed class action said.

The plaintiff ...