Geico class action settlement overview:
- Who: Geico has agreed to pay nearly $2 million to settle a class action lawsuit.
- Why: The Geico class action alleged the insurer failed to pay title or registration transfer fees for the total loss of insured vehicles.
- Where: The Geico class action lawsuit was filed in New Jersey federal court.
A nearly $2 million Geico settlement should be approved, a plaintiff urged a New Jersey federal judge on July 1.
Plaintiff Diane McCoy filed the motion for preliminary approval of the Geico class action settlement, which would resolve allegations the insurance company failed to pay title or registration transfer fees for the total loss of insured vehicles.
About 33,000 Geico policyholders may qualify as class members. If the Geico settlement is approved, class members may be entitled to compensation valued at about 90% of the title and registration transfer fees.
Geico class action says insurer failed to pay mandatory replacement fees
McCoy filed the Geico class action lawsuit after her car was totaled in a 2018 auto accident. She filed a claim with Geico, and the insurance company determined the vehicle was a total loss.
According to her Geico policy, Geico’s liability for loss is limited to the actual cash value of the property at the time of the loss. Geico paid McCoy approximately $3,500 for the loss, which did not include payment for title or registration transfer fees. These fees are mandatory vehicle replacement costs in New Jersey, the Geico class action explains.
McCoy argues the “replacement cost” on a total loss vehicle includes the mandatory replacement fees, and claims Geico’s failure to pay these costs amounts to a breach of contract.
She filed the Geico class action lawsuit on behalf of herself and other Geico policyholders who were allegedly underpaid on the replacement fees due to their total loss claims.
Geico has also agreed to pay replacement fees in New Jersey on total loss vehicles moving forward.
McCoy told the court the proposed Geico settlement terms are “fair, reasonable and adequate” and urged the judge to preliminarily approve the deal.
A similar Geico class action settlement was recently reached in Louisiana.
What do you think about this Geico settlement? Tell us your thoughts in the comments.
McCoy is represented by Mark A. DiCello and Daniel R. Ferri of DiCello Levitt LLP, Rachel Dapeer of Dapeer Law PA, Edmund A. Normand of Normand PLLC, Scott Edelsberg and Adam Schwartzbaum of Edelsberg Law PA and Andrew J. Shamis of Shamis & Gentile PA.
The Geico class action lawsuit is Diane McCoy v. Geico Indemnity Co., Case No. 3:20-cv-05597, in the U.S. District Court for the District of New Jersey.
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151 thoughts onGeico to pay $1.9M to settle fee payment class action
Geico has been my insurance company for a very long time and I’ve never really been happy with them. Their agents are smart mouths and have no manners at all. They are very expensive. I’m a senior, haven’t had an accident or ticket in years and years and probably don’t drive 60 miles a week and my insurance is over a hundred bucks a month. I’m glad they are being called on the carpet for their crimes but I bet everyone’s premium goes up. I haven’t switched companies because it’s such a hassle but I really may look into it.
This happened to me too. I had a total loss and they still charged me!
I do believe this happen to me, I didn’t t follow thru cause I was working to job
Happened to me in2016, total loss
I truly believe this happened to me as in Dayton Ohio with Geico for a total loss back in2018
I only got $500 from geico my car was a total loss ive ben going to therapy 3 days a week cuz of this i have no car i have no rental i lost my job because of this. How can i file a claim on geico?
Somebody hit me for for the back in my car my car was total Los the insurance company Geico did it terrible job Geico have my car accident report please help me
Add me geoco didn’t pay me fo
This happened to me
My csr was totaled 2019 ,im in Flat been with Geico since 2006 grandfather in
My son had an accident last month hit from behind the person had no liv
License no insurance and was u documented geico never paid for his damages because he was a pizza hut delivery driver. He has no car now now no lost wages paid nothing g they
Just paid him 1000. Dollars for him canceling his insurance on a car he can’t drive why they wouldn’t cover the claim but paid him to cancel his insurance is beyond me they zuck it comes down to that I was a 30 yr customer now I. Eith progressive for 2 yrs best switch ever
He should have read his policy contract. 🤣
This just happened to me in Texas. They need to file this lawsuit in Texas.
Agreed!!