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
Please add me my husband had a hit and run and our insurance double
Add me please
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I still have geico in georgia I had a 2020 versa which was a total loss my insurance was 117.00 a month now I have a 2013 rogue and my insurance is 158.00 a month but they said first time accident would not go against you but it looks to me like it did they said it was because more wreaks in my state is why it up and been with them 13 years never once had to file a claim
Hit and run total loss please add me
Please add me. I had a total loss.
Total loss hit and run โ please
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I had geico 13 years I also total a car they said first time would not count against me I had a 2020 nissian versa which was $ 117.00 a month now I have. a 3013 nissian rogue my insurance went up 158.00 a month they said first time offense would not go against me but I believe it did .
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PLZ add me, here in FL & Iโm certain they did the same to a totalled vehicle I had as well!
Geico always has an excuse for everything. Iโve been wrong by Geico and if you donโt pay the date due they will drop you. I live in Texas, please add me.
I live in Pennsylvania and I have been wronged by GEICO numerous times. Please add me!