Top Class Actions  |  September 22, 2022

Category: Closed Class Actions

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This settlement is closed!

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GEICO Insurance office. GEICO is a subsidiary of Berkshire Hathaway - class action
(Photo Credit: Jonathan Weiss/Shutterstock)

GEICO agreed to pay $19.1 million as part of a class action settlement to resolve allegations it failed to pay sales tax when paying out total loss claims. 

The settlement benefits class members who were insured under California auto insurance policy through GEICO and were not paid either sales tax or regulatory fees on a claim submitted between June 27, 2015 (GEICO General), Oct. 23, 2016 (GEICO Indemnity), or June 30, 2017 (GEICO Casualty or Government Employees Insurance Company), through Aug. 27, 2020.

GEICO is an insurance company that offers automotive, homeowners, renters, motorcycle, boat and other insurance products. According to a class action lawsuit, GEICO fails to pay full total loss claims to automotive consumers.

When consumers get into a car accident, their vehicle may be declared a total loss if the damage to the vehicle eclipses the value of the car. In these cases, GEICO may pay a total loss claim for the actual cash value of the vehicle. 

However, according to plaintiffs in the case, GEICO fails to include sales tax and regulatory fees in these payments.

The GEICO class action lawsuit argues these payments violated both the company’s insurance policies and California state law. GEICO refutes these claims, arguing it complied with all applicable laws and regulations.

GEICO hasn’t admitted any wrongdoing but agreed to resolve these allegations with a $19.1 million class action settlement. GEICO agreed to a similar settlement with Florida policyholders.

Under the terms of the GEICO settlement, class members can receive a payment for unpaid regulatory fees of $6.88 and unpaid sales tax of 7.25% plus local sales tax.

According to the settlement website, average payment amounts are calculated to be $2,051.98. However, individual payments may be higher or lower.

GEICO will also change its business practices to begin prorating regulatory fees on total loss claim payments. This will ensure future payments include fees and other expenses are included in total loss payments according to applicable regulations.

The deadline for exclusion and objection is Oct. 27, 2022. 

The final approval hearing for the GEICO settlement is scheduled for Dec. 15, 2022.

In order to receive a payment from the settlement, class members must submit a valid claim form by Nov. 11, 2022.

Who’s Eligible

The settlement benefits class members who were insured under California auto insurance policy through GEICO and were not paid either sales tax or regulatory fees on a claim submitted between June 27, 2015 (GEICO General), Oct. 23, 2016 (GEICO Indemnity), or June 30, 2017 (GEICO Casualty or Government Employees Insurance Company), through Aug. 27, 2020.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

11/11/2022

Case Name

In re: GEICO General Insurance Co., Case No. 4:19-cv-03768-HSG, in the U.S. District Court Northern District of California, Oakland Division

Perez v. GEICO Indemnity Co., Case No.4:20-cv-07436, in the U.S. District Court Northern District of California, Oakland Division

Final Hearing

12/15/2022

Claims Administrator

CA Total Loss Class Action Settlement Administrator
P.O. Box 8060
San Rafael, CA 94912-8060
844-494-0263

Class Counsel

Jacob Phillips
NORMAND PLLC

Scott Edelsberg
EDELSBERG LAW PA

Annick M Persinger
TYCKO & ZAVAREEI LLP

Andrew John Shamis
SHAMIS & GENTILE PA

Joshua A Fields
KIRTLAND & PACKARD LLP

Defense Counsel

Kymberly Kochis
Alexander Fuchs
Ian S Shelton
EVERSHEDS SUTHERLAND LLP

Joseph R Ashby
SERGENIAN ASHBY LLP

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202 thoughts onGEICO California total loss sales tax, fees $19.1M class action settlement

  1. Lafayette D Lundy says:

    Am I excluded in the law suit

  2. Debbie A Coonce says:

    I’ve had a different experience with Geico. I used to be AAA member all my life and all three of my daughters still are . I went with Geico because there alot less money. Or that’s how it starts anyway. Each year or at random also. I have had my insurance changed without my asking them to do so. Highering my legal amounts of Insurance to higher ones And adding extra items as well. Yet the two times I needed to use my insurance I didn’t get help. Thank gosh I was stuck in the mud sliding down the hill in my own front yard as for the tow
    Truck never showed up.. if I had been stranded along side the road I would have cancelled them A. S. A. P. As they say you get what you pay for and even less now days…. Not thrilled with there customer service.

  3. Karen says:

    I had two cars totaled by Gieco I knew something was wrong both checks were under $1,000

    I knew that wasn’t right they sent me two cards to sign and return

    We getting $2,000 for each car that was totaled

    I was with Gieco over 20 years

    My whole family was triple aaa

    I got on with the state and Gieco stands for “ Government employees insurance company” their own employees don’t know that

    I paid $50 dollars a month that was full coverage and towing

    Because I was a State employee

    When Gieco went public they got more expensive and services wasn’t as good

    I was paying $250 a month with a good driver’s record

    I asked Gieco why? They told me some lie

    So! I went back to Triple AAA now I pay $123 for full coverage and that includes towing

    Gieco called and I told them why I left

    I was with Gieco 21 years my whole Stare career because it was $50 a month

    Gieco isn’t as good as they use to be

    1. Tiffany finch says:

      Add me

  4. Lindsay H says:

    Anyone else get on this class action then get dropped from Geico? I feel like I’m getting retaliated against. They made up some excuse saying they updated their policy. Am I the only one?

    1. Stephanie says:

      Nope! They did the same to me, and didn’t even notify me until AFTER they dropped us. So I was driving uninsured and didn’t even know it.

  5. E. Apeli says:

    Please add me.

  6. Pearl Reynolds says:

    Add My Name

    1. kristine s says:

      Add my name

  7. L.Robert Jellinek says:

    Please add me.

    1. Lance M. Ellsworth says:

      Please add my name to the list against Geico because I’m still insured with him in or not December 10th or the 12th of I was hit by non-shared motors on with a suspended license

      my vehicle was a 2018 Nissan Sentra and it was marked totaled lost by Geico.

      I was awesome not marked at salt at all and I have all the following paperwork. Geico gave me the runaround with a little shifty lawyers.

  8. L.Robert Jellinek says:

    Please add me, I have been a Geico customer for many years.

  9. Joseph Arsanis says:

    I also was in rear ended accident with my son mark arsanis 2/6/2022, I wasn’t paid any taxes that were due either .I don’t understand how anyone involved with Geico accident claims aren’t entitled to anything.

  10. Mark Arsanis says:

    Rear ended in 2/6/22, settled with Geico around may 2022, aren’t my son & I entitled to atax claim this year 2022?

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.