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, Geicoโs 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 โreplacement costโ on a total loss vehicle includes the mandatory replacement fees, and claims Geicoโs 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 โfair, reasonable and adequateโ 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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152 thoughts onGeico to pay $1.9M to settle fee payment class action
I had a accident in my 2018 Kia the under panel came off as well as someone scrab the front of my car I file accident report and was told they couldnโt pay for it because it wasnt covered I had full coverage at the time and they did nothing I deserve to be compensated for my losses to my vehicle during the full coverage and they refuse so I wasnโt eligible for nothing but they are still charging me so I drop the collision off my policy was because they refuse to pay for anything why should I have to pay for it not fair to me I deserve to get my car fixed and to be compensated for it as well
Please add me
Please add me
Please add me
Add Me Please!
Had an accident back in 2013 and the same thing happened to me.
add me
I had a loss in 2022 and now I need to find out if they didnโt pay mine
Please add me. Have had 2 vehicles totaled with insurer.
Same happened with my total loss in GA.
I was with Geico for over 7 years never filed any claims, latest is the moved my policy to Direct Auto 3 times higher monthly payment ๐ค. Please include me