GEICO cancels Charo

Connecticut Attorney General Richard Blumenthal said that GEICO insurance company has said it will no longer run what Blumenthal claims is “a false and misleading television advertisement” that claims the company repairs cars in a few days or less.

Blumenthal has called on the company to immediately cease running the ad in which actress Charo appears with a consumer who claims that GEICO “repaired (his car) within a few days, like new.”

Blumenthal said the commercials may give consumers the false impression that GEICO actually repairs cars directly. Under state law, GEICO is not permitted to repair motor vehicles without obtaining a motor vehicle repair license. The company is also prohibited from requiring that consumers use preferred auto repair shops.

According to Blumenhtal, the Auto Body Association claims that the ad is symptomatic of a larger problem in the industry where insurers allegedly steer business to “preferred” auto repairers.