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A federal judge in Florida recently found Geico liable for unpaid fees stemming from total loss claims.
U.S. District Judge Paul G. Byron determined that the five plaintiffs in the Geico total loss claims class action, and the Class Members in the complaint, are eligible for about $80 each. This amount represents Geico’s liability for failing to pay the total replacement cost of total loss vehicles, including fees.
When a vehicle is declared a total loss, it means that the vehicle is too damaged to safely repair; the vehicle’s repairs cost more than the car’s value; or the vehicle’s damage is equal to a percentage of the car’s value that meets state guidelines. Each state has its own laws, but a car may be declared a total loss if it the damage is between 50 and 100 percent of the car’s value, according to WalletHub.
Usually, consumers receive a settlement from their total loss claim that is equal to the actual cash value of the vehicle, less any deductions. However, plaintiffs in the Geico total loss class action claimed that the insurance company fails to provide complete payments because title transfer fees and other replacement costs are not considered. The five named plaintiffs argued that Geico should pay customers the full value of their cars, including title transfer fees and other unavoidable costs.
In his recent decision, Judge Byron supported the plaintiffs’ argument and found that the actual cash value (ACV) of a vehicle should include fees such as title transfer fees. The minimum title transfer fee in Florida in $4.10 and is reportedly unavoidable.
“As with title transfer fees, license plate transfer fees are ‘mandatory [fees] necessarily included in the replacement costs of a total loss vehicle,’” Judge Byron wrote in his decision. “Having found that title and tag transfer fees are components of ACV, the court further finds that GEICO materially breached its contracts with plaintiffs by failing to include these fees in total loss claim settlements.”
In his motion, Byron referenced another lawsuit against Geico which claimed that the company failed to pay all replacement costs in total loss claims. In this suit, the court determined that actual cash value includes title transfer fees since they are a mandatory cost associated with replacing vehicles after a total loss.
“Courts have found that replacement cost includes items such as a contractor’s overhead and profit, sales tax, and fees where it is ‘reasonably likely’ that the insured would incur these costs if he or she repaired or replaced the property,” Byron wrote.
In that decision — Roth v. GEICO General Insurance Co. — plaintiff Kerry Roth claimed that she was not given her full refund after a 2016 accident resulted in a total loss claim, according to Autobody News. Roth won summary judgment in the Geico class action in June 2018.
The Geico Total Loss Class Action Lawsuit is Sullivan, et al. v. Government Employees Insurance Company, Case No. 6:17-cv00891, in the U.S. District Court for the Middle District of Florida.
UPDATE: December 2019, the GEICO total loss class action website is active. Click here to learn more.
Join a Free Total Loss Car Accident Class Action Lawsuit Investigation
If you were insured under an auto insurance policy, experienced a total loss car accident, and were not reimbursed for sales tax and other fees by your insurance company in the last 5 years, you may qualify to join a total loss car accident class action lawsuit investigation.
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17 thoughts onGeico Must Pay Full Total Loss Claims, Judge Says
Vehicle year 2017 purchased in Sept 2016 how does it lose $10,000 in value with not even 25k miles tree fell on vehicle during a storm caused a total loss, insurance barely covered the balance even with gap insurance. How fair is that???
i am completely upset and disappointed with geico services. my bank charge me overdraft fees because geico took payments out of my account early 11.29.19 and 12.13.19. they were supposed to take money out on 1st and 15th the days we get paid. they refunded for the first charge but gave me the run around for the second charge. i am a military spouse on a fixed income, husband is currently deployed in iraq, we are on gecio military program and they are not accepting full responsibilities for their actions and their representatives were not very compassionate. i am stressed and overwhelmed because i feel like they are taking advantage of military families who are not able to call them daily and challenge them like I can. Yes, it was only 29.00 but it is my 29.00, the 29.00 my husband is sacrificing his blood sweat and tears for and it’s the principle of the original arrangement. I had to send in multiple running statements for a month which was personal. I had to call daily to received different information and different feedback. I am tired and stressed and can not believe they have the nerves to say they appreciate my husband 17 years of service when they were not honoring their program commitment. I am disgusted, I am immensely dishearten and I am hurt that they would take advantage of military families by miss leading them. Shame on you geico.
Yea well they did this to persons in Alabama too!
I totally loss my santa plz add me i have received a notice for the. Settlement thx
Total loss in 2017. Add me
My car was highjacked from school by 14 yr old student. In 2016, driven all over daytona for an hr. Until he ran out of gas,totally destroyed my car.. I had buy another car… that I could not really afford pmts on.. but have to cause need transportation… was 75 then.. got pay off on car but not any help of any kind , from student or parents… I did get a card from the Geico class action and said I had do nothing if wanted be included… so I do want be included, if necessary.
Add me. I had Geico when my car was totaled in 2016. I do not believe that I was given the full value of my car, plus Geico messed up the paperwork and the process took over a month to resolve causing the finance company to put what Geico did not cover in collections.
Please add me. I received a notice in the mail I can not locate it. I totaled my X3 BMW and I do not believe I was given the value of the vehicle. This was in 2016r
Okay when I read this they stated Florida about a charge of minimum of $4.10 for total transfer. We had two vehicles one was one a year old valued around 20,000
Still the. We have a beater car valued at 500. They charge 100.00 each for title transfer
Add me
Add me in