Car rental company Geico is being sued for millions in damages after the company was hit with a $100-million class action lawsuit.
The class action complaint filed in the US District Court for the Southern District of New York alleges that Geico failed to properly disclose the risks associated with using the car rental industry, and that it failed to provide customers with information on the company’s insurance policies.
“Geico failed the public interest by failing to provide information about its insurance coverage or its coverage in all states where it operates, including New York and California,” the complaint states.
Geico was not immediately available for comment.
The lawsuit, filed in New York on Monday, alleges that the company “intentionally misled the public, including consumers, about the nature and scope of the risks it assumed, and by failing in good faith to disclose the nature of those risks to consumers”.
The lawsuit claims that Geisto failed to warn customers that their rental car insurance would be more expensive if they paid with credit card.
Geico also failed to disclose that the use of credit cards could increase their liability for claims if their vehicle was damaged, the complaint alleges.
Geisto did not immediately respond to a request for comment, and its lawyer declined to comment.
A spokeswoman for Geico did not respond to requests for comment either.
Lawyers for the company say that it has a contract with insurance provider Cigna that includes a clause that allows it to pay for any claims the insurer believes to be “not justified” under the terms of that contract.
Cigna said it was “disappointed” that the lawsuit was being filed against it.