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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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61 thoughts onGeico To Pay $24M To Settle Claims It Short-changed Customers With Totaled Cars
I AM FIGHTING FOR EVERYONE IMPACTED BY THIS THEFT. REACH OUT TO ME AT HIGH MAIN LLC @ GMAIL. PUT IT TOGETHER ALGORITHMS AND CENSORSHIP YA KNOW. WHEN YOU EMAIL ME PLEASE INCLUDE ALL EMAIL RECEIPTS YOU HAVE WITH THESE THIEVES AND A COPY OF YOUR 6.88 CHECK IF AVAILABLE. ANYTHING YOU HAVE AND ILL INCLUDE YOU IN MY COMPLAINTS AND DEMAND FOR PAYMENTS TO US ALL. HURRY, THEY ARE TRYING TO RUN OUT THE CLOCK
F I G H T B A C K !!!
Don’t let them rip you off. Report every single attorney to the state bar for misconduct and misappropriation of funds. Don’t forget to include the claims administrator. Some of these Attorneys have licenses in multiple states, so make your complaints to those state bars as well. If we don’t fight back, it continues and only accelerates. I just did all that in the class action I was in, in the 19.5 million dollar Geico class action here in California. they kept everybody’s $2051.98 payment. Grow a pair and be a part of the change. if you say nothing or do nothing then nothing changes. That’s what they are hoping you do, nothing. I am now being threatened by an attorney for reporting him. I will never stop fighting.
Sorry to have to tell you this but You will only get paid the $6.88 these class action attorneys are criminals thieves and they lie they’ll turn around and tell you that this was a 2 class party one was the $2000 class for sales tax and the other 1 was regulatory and you will only, in the end, only receive $6.88. they’ll put you in the regulatory category and only dish out 6.88. I just went through this just this year
There’s no telephone number or website on this page. I had to call attorneys on the case we got first part $6.88 cents kcc settlement administration paid that now their saying GIECO is paying us $2,000 I’m getting run around so I called the lawyers on this case to get answers
My BMW was totaled out by GEICO in 2020, I was under bid and had to fight with GAP to pay of the remainder which took 6 months of my credit being attacked. I completed all class action response paperwork and have received nothing. I am looking for the law firm over this settlement that is keeping claimants’ money. These attorneys need to do the right thing and they are not.
My son was tricked into a settlement from Geico for his totaled car that is thousands less than he can get a comparable car for in NJ. Is it possible to start yet another class action against GEICO?
Add me please
GEICO is ripping off their customers I had insurance with them and they went up for the following year so I switched insurance co. and they charge me a fee of $88 for counseling by policy; giving me no prorated refund on my policy.
I’m in , I know it was coming!!!
My car was total 2019 with Geico a total of 2 Adults and 1 child was. Involved in the accident. I always told Geico that I felt like I was under paid they said it was the law and some other things that just did not make since to me.