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

  1. Tammy says:

    Hello,
    I called this morning and I was told that Geico would be sending out the $2058 amount but they do not know when or who qualifies for this amount. I received the $6.88 check last week. Just hoping we all get the other portion as well. I should have asked for a phone number for Geico but didn’t think of it until I hung up. God bless everyone!

    1. Nathan says:

      Thank you Tammy , I also received the 6.88 and I have been getting so much conflicting information some people are saying we will get the $ 2,058 other people are saying No if you got the $6.88 that’s all you’re getting every time I try to call nobody ever picks up or I get hung up on it’s hard to get any information and one of the times I called it just doesn’t seem that they have any information . I pray we all will receive the $2058 because of gas and food prices in California are insane the money would be a blessing.

      1. Kristen says:

        I just spoke with Geico and they are NOT sending any payments out and the total loss unit is unaware of this. They were able to tell me that my car was under valued by $1700. They were very confused by the checks for $6.88.

  2. Christine says:

    Im from Corona California and just received the $6.88 check today. What a disappointment after all this time…Just have to wait and see.

  3. Rebecca says:

    No we will not get both payments. There’s two categories. The sales tax people get 2,000 but the rest of us only get the 6 dollars which is disappointing.

    1. Nathan says:

      Rebecca I was wondering do you happen to know what claim your apart of because I looked back at my original email and at it says to be apart of the 6.88 and the 2051.98 to fill out the claim forms to receive both

      1. Kristen Borden says:

        I sent back two responses as well. I’m so confused.

    2. P says:

      If we’re not the sales tax people then what are we? Why are we even getting $6.88?

  4. Mohamed says:

    Same here. I just got the $6.88 check. I got excited before opening but found it was this amount. Any more checks coming?
    Site is down.

  5. Nathan says:

    Could anyone please let me know if we will be getting both payments one for $6.88 and one for $2051.98 please give me an update I appreciate it

    1. Karen says:

      Yes! we’re supposed to get both I was on hold almost two yesterday then someone answered hungup

      1. Nathan says:

        Thank you so much Karen, I’m so sorry you had to deal with that it’s ridiculous. I got the $6.88 but not the other amount yet . Did you get the $6.88 ?

  6. Dorothy says:

    Any updated anyone?
    I just got off phone on hold two hours and the lady answered saying she can’t hear me damn

  7. Rochelle Wallace says:

    I called the settlement administrator today and was told that GEICO will be sending the sales tax checks directly but the administrator have no info on when or who will get it

  8. Vanessa says:

    Yes, I have also received a check for $6.88.

    1. Nathan says:

      I was wondering do you happen to know if we will also get the $2051.98 because in the lawsuit it says there is the amount of $6.88 and $2051.98 if anyone knows please post it

  9. Nathan says:

    Does anyone know if we will receive the $2051.98 because everything I have read says both amounts??

  10. P says:

    Was so excited to see a GEICO check in the mail and it ended up being $6.88. Can’t even get McDonald’s with that.

    1. Oscar D says:

      Same here $6.81

      1. Darnell Robinson says:

        What happen to the rest of the money? 2058.00?

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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.