Geico class action overview:
- Who: Geico General Insurance Co. is facing a class action lawsuit over its payouts for leased vehicles that are determined to be a total loss after a collision.
- Why: Geico is accused of not updating its vehicle estimates to determine the actual cash value of leased vehicles to reflect the increased value of used vehicles.
- Where: The Geico class action was filed in federal court in California.
Geico General Insurance Co. is facing a class action lawsuit claiming that it has underpaid owners of leased vehicles who had a collision resulting in a total loss.
Geico has not updated its vehicle estimates to determine the actual cash value of leased vehicles to reflect the increased value of used vehicles, the Geico total loss lawsuit says.
“Historically, with leased vehicles, the ACV was less than the amount owed on the vehicle by a lessee under the lease agreement. That is because the value of a new leased vehicle greatly declined the minute it was driven off the car lot,” the Geico leased vehicle lawsuit says. “However, in recent years, the automotive industry has experienced a trend: used car prices have not only remained stable, but in some cases, steadily risen. As used car prices have risen, the residual value of leased vehicles — the estimated value of the car at the end of the lease term — has also increased.”
Vehicle owners should have received payment beyond lease payout, lawsuit says
The leased vehicle’s residual value at the end of the lease has also increased, the Geico leased vehicle lawsuit says.
That means that vehicle owners should receive payment for that value, above paying off the remainder of the lease, according to the class action.
Earlier this year, an Illinois federal judge allowed Geico to appeal a ruling denying its attempt to dismiss a class action lawsuit that alleges it unjustly profited off the COVID-19 pandemic by charging excessive premiums when people drove less.
Have you had a total loss collision that involved a payout from Geico? Let us know in the comments.
The plaintiff is represented by Timothy G. Blood, Thomas J. O’Reardon II and Paula R. Brown of Blood Hurst and O’Reardon LLP along with Jorge Federico Lathrop of Lathrop Law APC.
The Geico class action lawsuit is Porcu v. Geico General Insurance Co., Case No. 3:23-cv-02302-LL-BGS, in the U.S. District Court for the Southern District of California.
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29 thoughts onGeico class action alleges insurer to pay following leased vehicle total loss
DONT BOTHER, CLASS COUNSEL STEALS YOUR AWARD MONEY ANYWAY. OPT OUT BY REPLYING TO THEIR NOTICE TO OPT OUT.
Include me, I leased a Hyundai rlantra, geico totalled the car before lease was up. Still had to pay for lease balance. I opted in for gap insurance and still had to pay back $2,285.00 even though car was totalled from an accident I was not found at fault for.
i was insured thru geico on a suv i was leasing they paid off my suv but i never recieved and compisation for pain and suffering since the vehiecle was total loss please contact me to discuss more about this matter phone number is 3309373333
It took my Gap insurance almost 6 months to pay out. Because geico’s short change my total amount so much. In the meantime, I had to keep insurance on a car that was no longer around. I had to keep making payments on the car. It was ridiculous and I kept calling geico and saying that they did not give me a reasonable amount for my car and they said they wouldn’t give me anymore. I was so short change. D it’s ridiculous. How much I lost in this?