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.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
25 thoughts onGeico class action alleges insurer to pay following leased vehicle total loss
I lost my vehicle on Jan 1 2023 Geico totaled out my car and issued me a $16,000 check.
I definitely need the info on Geico lawsuit. They did a total loss on my vehicle just because the bumper was damaged and did not want to pay for the assessment or storage fees of the Body Shop. Had to contact TDI to get them to respond.
Add me you will love how they scammed and falsely paid on a claim
I need the info for Geico
Geico wrongfully dropped our two Hyundai’s and returned our money in June 23 due thefts in our area in Macon Ga. Now we have pay for a leased/ financed. vehicle that was fully covered.
GEICO allowed a company to fraud them and not fix my car after I was hit from behind. The company stated they painted the bumper but it was never touched and still damaged. That company refused to help and Geico said sorry to bad to sad. So, I get a vechile that is still damaged.
Add me I use to have their insurance and Ahmad a claim
I had loss with gieco.please add me to lawsuit
I had total loss with gieco
I have total loss of Geico my car was getting in the back in the truck is hit me to get a lot of money this is not fair I would like to include me in the class action thank you and I have all the records from Geico
Add me please
I have Geico for insurance and I had a total loss on June 6 2023 and still have a unpaid balance off over $3000 with the finance company that gap insurance has not paid as well Can I be added to the lawsuit.
Miriam
Please add me I have had 2 total loss accidents while with GEICO