Find out about Payment Recovery

What is payment recovery?

If a GEICO policyholder sustains vehicle damage or an injury because of another driver's negligence and GEICO settles the claim, we frequently seek to recover the policyholder's deductible and the amount we paid from the negligent party or that party's insurance company. This common insurance process is called payment recovery or subrogation.

How does payment recovery work?

After paying a claim caused by the negligence of a driver not insured by GEICO, we assign a Payment Recovery Adjuster to pursue the negligent party for reimbursement and to keep the customer informed on the status of our payment recovery efforts. On a typical claim, a Payment Recovery Adjuster:

  • Notifies the negligent party or that party's insurance company that we are pursuing reimbursement of our customer's deductible and the amount we paid.
  • Sends claim documentation and proof of payment to the negligent party or that party's insurance company.
  • Negotiates with the negligent party or that party's insurance company when necessary.
  • Follows up until we receive reimbursement or until all efforts are exhausted.
  • Sends a check to the customer for the deductible amount when we receive payment.

In some situations, we cannot recover the full amount we request. This sometimes occurs when the other party involved disputes the cause of the accident or does not have insurance. We make every effort to recover the appropriate amount, but we cannot guarantee recovery of your full deductible.

How long does payment recovery take?

Payment recovery usually takes about six months. Sometimes payment recovery happens more quickly. However, if the negligent party or that party's insurance company does not cooperate, recovery could take longer. In some cases, we are unable to recover anything at all. The length of the process depends on the amount of cooperation we receive from the negligent party or that party's insurance company. We make every effort to recover money as quickly as possible, especially when a policyholder's deductible is involved.

How can policyholders assist with payment recovery?

If you have a claim in payment recovery, please:

  • Refer any inquiries from the negligent party or that party's insurance company to the GEICO representative handling your claim.
  • Consult GEICO before making any statements or accepting any settlement offers. Not consulting us could jeopardize your claim.
  • Be prepared to submit a cancelled check, credit card statement, body shop invoice, or other proof that you paid your deductible. GEICO will contact you if the other insurance company requests this information.
  • Be prepared to submit a written or recorded statement about the facts of the accident. GEICO will contact you if the other insurance company requests this information; again, do not make any statements regarding your claim to another insurance company without first consulting GEICO.

Note: States have different rules regarding payment recovery, and some states do not allow payment recovery for some coverages. Check with the GEICO representative handling your claim if you would like more information.

This material is intended for general information only. It does not expand coverage beyond the policy contract. Please refer to your policy contract for any specific information or questions on applicability of coverage.