GEICO Insurance Claim Failed To Cover Fees, Says Class Action Lawsuit

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GEICO Insurance Claim Class Action Lawsuit Overview:

• Who: A Texas couple is suing Government Employees Insurance Company (popularly known as GEICO) and its subsidiary GEICO County Mutual Insurance Company. 
• Why: The class action lawsuit alleges that GEICO ‘systematically fail[s]’ to pay the full amount owed under its policies.
• Where: The class action lawsuit was filed in Texas federal court.

GEICO, corporately known as Government Employees Insurance Company, and a subsidiary are facing a class action lawsuit after they allegedly failed to pay the full insurance claim for a totaled vehicle as laid out in its policies. 

The class action lawsuit has been lodged by Sonny and Alycia Farris. In April 2020, Alycia Farris was involved in a car accident that left her vehicle, insured by GEICO, totaled.

GEICO settled the insurance claim with the appearance of intending to pay the Farrises the actual cash value of their totaled vehicle, according to court documents. GEICO, however, failed to pay up $74 in vehicle registration fees, which are included in the replacement cost under the insurance policy, the class action lawsuit claims. 

The Farrises have filed this class action lawsuit also on behalf of anyone who made a first-party GEICO insurance claim and whose total loss settlement payment did not include vehicle registration fees. 

GEICO Has History of Shirking Accident Insurance Payouts

GEICO has a history of short changing customers when it comes to insurance claims, according to court documents. 

In August 2020, GEICO faced disciplinary action from the Texas Commissioner of Insurance for failing to pay statutory interest to policyholders in instances when GEICO paid personal automobile claims late. 

Government Employees Insurance Company and its GEICO subsidiaries “systematically fail to pay vehicle registration fees” as part of its total loss payouts, thus denying customers the actual cash value determined in their policies, even when policyholders “complied with all terms of their policies and paid all premiums owed,” claims the class action. 

Registration fees are mandatory to be able to drive in Texas, and therefore part of the “replacement cost” for vehicles insured by GEICO in Texas, according to the class action lawsuit. 

The plaintiffs seek the full policy benefits they paid for and were promised, compensatory damages, statutory interest of 18 percent, and attorneys’ costs. 

Have you submitted a GEICO insurance claim for a totaled vehicle? Did they pay all of the fees? Let us know in the comments below!

The plaintiff is represented by Randall K. Pulliam, Joseph Henry Bates III and E. Lee Lowther III of Carney Bates & Pulliam, PLLC and Allen M. Stewart, Scott R. Frieling, and Lee B. Lesher of Allen Stewart, P.C.

The GEICO Insurance Claim Class Action Lawsuit is Farris, et. al., v. Government Employees Insurance Company, et al., Case No. 3:21-cv-01975-M, in the U.S. District Court for the Northern District of Texas Dallas Division.

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