GEICO California total loss sales tax, fees $19.1M class action settlement

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

Settlement Website

CaliforniaTotalLossClassActionTaxes.com

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