Geico Total Loss Insurance Class Action Lawsuit Settlement Overview:
- Who: Geico
- Why: Geico is settling claims with customers who say they weren’t paid enough on their claims when their cars were deemed total losses.
- Where: California
Drivers insured by Geico who received payouts due to their cars being deemed “total losses” could be receiving a $2,000 check from the company, thanks to a class action lawsuit settlement.
In a motion filed Oct. 8 in a California federal court, Geico asked the court to approve a $19.5 million settlement with policyholders who claim the insurer didn’t pay them the full amount of sales tax and regulatory fees after their cars were written off.
“This is an impressive result for Settlement Class Members. Indeed, on average, sales tax class members will be paid $2,000,” the settlement states.
Geico has also agreed to pay an additional $4.43 million to cover attorney fees, court costs and notice and administration.
The class action lawsuit has been contested in litigation for more than two years. In the original complaint, Plaintiffs Cindy Ventrice-Pearson, Poonam Subbaiah and Kristen Perez alleged that Geico’s insurance policies should have been paying customers for sales tax and regulatory fees when their vehicles were deemed total losses.
This is because the policy defines actual cash value as the “replacement cost” of the auto, minus depreciation, and therefore requires payment of the sales tax and regulatory fees required to buy a replacement vehicle.
Geico Will Pay Two Classes to Settle Class Action Lawsuit
There are two Classes – a sales tax Class and a regulatory fees Class.
The regulatory fees Class should get about $6.88 each, while the sales tax Class is estimated to get about $2,000 each, on average. Customers could be eligible if they were covered under a Geico California policy and made a claim in which their vehicle was deemed a total loss at some point from June 27, 2015 through August 2020.
In February, Geico made a similar deal worth about $79 million, ending claims it shorted drivers by failing to pay sales tax and transfer fees on totaled leased vehicles, Law360 reports.
Meanwhile, Geico is also facing another class action lawsuit claiming it unfairly profited off the coronavirus pandemic, raising premiums despite the fact there was a huge drop in auto accidents.
Are you a Geico customer impacted by this settlement? Let us know in the comments!
The settlement class is represented by Annick M. Persinger and Mallory Morales of Tycko & Zavareei LLP, Edmund A. Normand and Jacob L. Phillips of Normand PLLC, Michael Louis Kelly and Joshua A. Fields of Kirtland & Packard LLP, Andrew John Shamis of Shamis & Gentile PA and Scott Edelsberg of Edelsberg Law PA.
The GEICO Total Loss Class Action Settlement is In re: Geico General Insurance Co., Case No. 4:19-cv-03768, in the U.S. District Court for the Northern District of California.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
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66 thoughts onGeico To Pay $24M To Settle Claims It Short-changed Customers With Totaled Cars
THE CLASS COUNSEL STEALS YOUR SALES TAX FEE AWARD MONEY ANYWAY AND YOU’RE LEFT HOLDING A $6.88 DOLLAR CHECK. IM FIGHTING THEM RIGHT NOW TO PAY ME MY MONEY.
I have been a GEICO customer for 5 years.
Had a claim on 9-11-2024. Rushed by ambulance on 9-11-2024. Severe injuries after this unplanned major wreck. Insurance company confirmed the other party also had GEICO coverage.
Had a total loss on my car.
Insurance adjuster drove to my home unannounced and spied on my home through the bushes. I filed a report with the local sheriff. Each time I returned the insurance adjusters calls, I got the voicemail consistently. Three weeks later, my car had a evaluation. As of today I have not received a penny from GEICO for the total loss. In fact, on October 14 th the Supervisor for the insurance adjuster bragged oh I sent my best adjuster to Florida. Here I am without a vehicle. Geico ignores my phone calls and has not in good faith paid me for my claim.
I had 2 total loss claims. One for my car claim #DPQMG834XW In December of 2012 and one for my motorcycle claim #DW625A9K4F in September of 2019. I received a check about 5 months ago for the motorcycle, but how would i check to see if i was to get one for my car. I received two cards for each loss and returned both for each to Davis Class Action Settlement c/o JND Legal Administration, PO Box 9184, Seattle, WA 98111
I don’t know if it is too late but the accident, which was a total loss happened February 5, 2021. Claim #8699114270000 001
During the pandemic, used car prices soared to ridiculous amounts here in Dallas, Texas. My daughter graduated high school in 2020 and shortly after, she was in the market for a new car. She worked very hard to find an affordable, used car. She found one at a dealership where we had purchased our 11th vehicle from. It being a used car at a dealership, was still overpriced due to shortage of vehicles. It was the best option of what was available on the market and that was slim picking. She had the vehicle for 2 weeks when a woman in her 40’s, no driver’s license who also presented fake insurance to the police on scene, hit my daughter’s vehicle, totaling her new, used vehicle. Not much added up from Geico after about 3 weeks. We have insurance for a rental in the event of an accident, but Geico informed us we weren’t able to use it in this event. They said it did not qualify but in actuality, it did. Geico said it was a no-fault accident even though we had a plethora of photos and video of the accident, including a passenger witness. It was very clear from the photos that the lady hit my daughter’s car, ripping off part of the front end that was left under part of her fender and lodged between that and her front wheel. There was plenty of evidence as to who hit who. Geico informed us that they will cover my daughter’s vehicle and that we would have to sue the other party for anything not covered. My daughter’s vehicle was deemed totaled by Geico. According to my son, there was not a reason to total the vehicle. After three months, nothing was happening on the claim. After several calls to Geico, I was informed that our claim was at a standstill with no explanation. I addressed the fact that Geico was not suing the other party, that we had additional issues than just an accident. Geico did not catch that the other party did not have, nor ever had a driver’s license. She presented insurance that was fraud. She purchased a policy, received the insurance cards then cancelled her policy. She had NO insurance for nearly a year. Still, Geico told us to sue her on our own to recover any damages exceeding what would be covered under our policy for our vehicle.
Due to the vehicle shortage, prices of used vehicles skyrocketed across the board raising the value of vehicles to a ridiculous price post covid. Geico paid a price for our totaled vehicle that was very low. I addressed this and fought for them to pay a better and even fair amount for the totaled vehicle. I gave realistic facts and even price compared the same vehicle specs available on the market. Geico used numbers from pre covid, paying out a very low amount for our vehicle. Because this became a nearly 5-month ordeal, my daughter took a hit to her credit by following what Geico informed her about continuing payments on her vehicle. What should have taken a month considering Geico claimed it a no-fault accident, took a little over four months. My daughter was receiving collections letters from the hospital although Geico kept saying they were going to pay. After I lost my temper and was no longer nice over the phone with Geico, they sent us the total amount the collection letter was requesting. Other than a hit to her credit score by credit bureaus, Geico paid for the car being totaled, leaving us a ridiculous balance that GAP questioned but after jumping through hoops, GAP paid. The $3,000.00 my daughter paid down on the car was gone and she was left with no vehicle. What a tough lesson to a young adult doing things the right way. We were left discouraged, and my daughter felt quite defeated. We assured my daughter that she did get the crap end of the deal but without extra funds, we were unable to help financially with a lawsuit against the other party. Not only that, but all evidence also points to the other party possibly receiving a judgement and once again, our daughter would be left with no rightful compensation.
I ask myself so often now a days, what is this world coming to. We are required by law to pay insurance if we own a vehicle yet there is no consequence for those not carrying insurance. To top it off, our insurance company is supposed to be on our side and defend us, protect us financially and do right by their clients. We are left feeling so ripped off.