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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25 thoughts onGeico class action alleges insurer to pay following leased vehicle total loss
THE ATTORNEYS AND THEIR CLAIMS SETTLEMENT ADMINISTRATORS WILL RIP YOU OFF OF THE SETLEMENT MONEY. JUST WENT THRU IT IN CLAIFORNIA 19.1 MILLION DOLLAR CLASS ACTION. DONT JOIN THIS RIP OFF CLASS ACTION
ITS ALL A SCAM. THEY STEAL YOUR AWARD MONEY AND ISSUE CHECKS SO SMALL ITS A JOKE. ITS BEEN PLANNED FROM THE START. THEY KEEP YOUR SETTLEMENT MONEY AND GIVE KICK BACKS TO GEICO WITH IT. THEY CLAIM THEIR WAS 2 CLASSES AND YOU WERE PUT IN THE SMALLER ONE. THE ATTORNEYS AND THEIR CLAIMS SETTLEMENT ADMINISTRATORS ARE ALL IN ON THE THEFT OF YOUR MONEY, DO SOME RESEARCH. LOOK UP GEICO TOTAL LOSS 19.1 MILLION CALIFORNIA.
Please contact me I would like to know more but I was suppose to receive something in the mail about the suit
Interested
Yes! Yes! Yes! Please put me down.
Geico screwed me over so bad with my auto claim. They are crooks.
Was in process to buy my leased vehicle as it was hit and totaled. My buyout was 11300. Insurance sent check to Hyundai and told me I would get the difference, Hyundai not paying the difference of 6400. Seems Geico says one thing, Hyundai says they never agreed to refund difference from what my payoff was.
Yes I had a auto accident with GEICO and feel like they under paid me.
I had a total loss of my lease with geico April 2021
Add me please
I’ve experienced a total loss with geico
Yes I did June 19th 2020