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. Nathan says:

    Where are the checks ?

  2. Nathan says:

    Does anyone know what’s going on ?

  3. Nathan says:

    I was wondering if there is any news??

  4. Nathan says:

    Any updates???

  5. oscar d says:

    Here is the a part of the email i received last year regarding the settlement . I really hope i am wrong but this is where i drew my conclusion that leased vehicles did not have taxes paid . “The Settlement resolves claims alleging GEICO failed to properly prorate regulatory fees and, as for leased vehicles only, failed to properly include full sales tax in claim payment to insureds who sustained a total-loss “

  6. Ana says:

    Does anyone know what to do if you have moved since filing your claim and mail is no longer being forwarded?

    1. Nathan says:

      I would call this number to see if they can update your info (844)494-0263

  7. Nathan says:

    Any update and has anyone received the $2051.98 ?

    1. Oscar d says:

      I honestly don’t think we are getting the 2k . I read the lawsuit and for my understanding the 2k pertains to those who were leasing the vehicle and had a total loss claim

      1. Karen says:

        Where can I read that? Please!

      2. Debra says:

        Yes , I think most people won’t receive the larger payout , i for instance have not received the smaller payout and I did have a a total loss claim several years back, I believe we all just need to wait it out

        1. Nathan says:

          I also had a complete total loss of vehicle. When I call I can’t seem to get any info

      3. Nathan says:

        I have read over all the paperwork and haven’t seen anything regarding just vehicles that were only least

        1. Kristen says:

          I had a total loss and my car was severely under valued and all I got was the $6 check. This is all a mess!!

  8. Marc says:

    Any updates?

  9. Leo says:

    If you are part of the 2 Class member you will received 2 checks. One for Sales tax and other one is for unpaid regulatory fee. The letter or the email that you received from last year will identify which class member you are part of. If you submitted your claim on time in KCC and you have your claim number that mean you are part of the Sales tax class member. I already received the first check which is the unpaid regulatory fee $6.88. The second check which is the Sales Tax we don’t know for sure when they will start sending it. If you have a claim number and you submitted it on time for sure you will get the big check. Thank you!

    Typical Settlement Amount:
    Benefits: (1) Sales Tax Class members will receive unpaid state sales tax of 7.25% plus any applicable local sales tax, based on the adjust value of the total-loss vehicle at the time of loss (minus any amount of sales tax including in the original total-loss claim payment; and (2) unpaid regulatory fees of $6.88. The average claim is estimated at $2,051.98, although individual payments will vary. (2) Regulatory Fee Class members who are not in the above Sales Tax Class will receive unpaid regulatory fees of $6.88.

  10. Nathan says:

    Any updates I tried to call this morning to get some clarification and was on hold forever and then got disconnected

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