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
Car totaled in 2021 with geico and they been increasing me every 6 months please let me know if it hit Arkansas
I had 2 vehicles totalled while insured with Geico The airbag did not deploy on the Infinity but it was totalled anyway. I live in Alabama and wish to be added to this suit.
Total loss in October 2023. Please add me Oklahoma.
Had a total loss in Feb 2023 in Florida as a Geico policy holder. Please add me.
Please add me
Please let me know when a settlement takes place in Florida. I had a total loss as well with GEICO.
I know the feeling I never use them again me and my son was in a wreck april 4 of these year my car was total out it took them three week to tell me it was total out then they stop my rental the worst part was they pay my loan left on it that was not much cause I only had 9 month left and I got 925 dollars different what 925 dollars going to get me nothing and now it been 3 month and they still have not settle for pain or suffering
I am having the same problem here in Alabama with my Geico Agent.
I had the same exact problem in July 2023
Please let me know of open Lawsuits in Seattle Washington.
We ( my son and I) had them and your right their smart alec snd crooks. My case is still pending where a lady hit me from behind at a stop light and totalled the vehicle( she was ticketed , she slso had GEICO, which I call GANCO cause they only offered $20,000 fir my injure ies I sustained amd the vehicle CROOKS! The behicle was totalled. We had to suffer and borrow against my case to replace the vehicle and the claims adjuster before hiring an attorney mentioned the driver who hit me on first name basis znd tried increase our insurance from $300 range to $400 a month range. This is in Washongton state. Can I be added to your list to sue them?
Lemme know when it hits SC
SC claim here
Happen to me 2022 total loss add me