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Geico Total Loss Insurance Class Action Lawsuit Settlement Overview:
- Who: Geico
- Why: Geico is settling claims with customers who say they weren’t paid enough on their claims when their cars were deemed total losses.
- Where: California
Drivers insured by Geico who received payouts due to their cars being deemed “total losses” could be receiving a $2,000 check from the company, thanks to a class action lawsuit settlement.
In a motion filed Oct. 8 in a California federal court, Geico asked the court to approve a $19.5 million settlement with policyholders who claim the insurer didn’t pay them the full amount of sales tax and regulatory fees after their cars were written off.
“This is an impressive result for Settlement Class Members. Indeed, on average, sales tax class members will be paid $2,000,” the settlement states.
Geico has also agreed to pay an additional $4.43 million to cover attorney fees, court costs and notice and administration.
The class action lawsuit has been contested in litigation for more than two years. In the original complaint, Plaintiffs Cindy Ventrice-Pearson, Poonam Subbaiah and Kristen Perez alleged that Geico’s insurance policies should have been paying customers for sales tax and regulatory fees when their vehicles were deemed total losses.
This is because the policy defines actual cash value as the “replacement cost” of the auto, minus depreciation, and therefore requires payment of the sales tax and regulatory fees required to buy a replacement vehicle.
Geico Will Pay Two Classes to Settle Class Action Lawsuit
There are two Classes – a sales tax Class and a regulatory fees Class.
The regulatory fees Class should get about $6.88 each, while the sales tax Class is estimated to get about $2,000 each, on average. Customers could be eligible if they were covered under a Geico California policy and made a claim in which their vehicle was deemed a total loss at some point from June 27, 2015 through August 2020.
In February, Geico made a similar deal worth about $79 million, ending claims it shorted drivers by failing to pay sales tax and transfer fees on totaled leased vehicles, Law360 reports.
Meanwhile, Geico is also facing another class action lawsuit claiming it unfairly profited off the coronavirus pandemic, raising premiums despite the fact there was a huge drop in auto accidents.
Are you a Geico customer impacted by this settlement? Let us know in the comments!
The settlement class is represented by Annick M. Persinger and Mallory Morales of Tycko & Zavareei LLP, Edmund A. Normand and Jacob L. Phillips of Normand PLLC, Michael Louis Kelly and Joshua A. Fields of Kirtland & Packard LLP, Andrew John Shamis of Shamis & Gentile PA and Scott Edelsberg of Edelsberg Law PA.
The GEICO Total Loss Class Action Settlement is In re: Geico General Insurance Co., Case No. 4:19-cv-03768, in the U.S. District Court for the Northern District of California.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
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61 thoughts onGeico To Pay $24M To Settle Claims It Short-changed Customers With Totaled Cars
I had a total loss with Geico and they did not give me what they should have! How do I get on this class action?
Yes!
I qualify for this class action
GIECO didn’t pay me enough and totaled my car
Plus I got tired of paying $250 a month and they lied saying because of this or that
So! I went back to triple aaa
Now! I pay $121 a month
Geico Did the same thing to me in Houston ,TX. I’ve been trying to suit them they took car out of our yard after Harvey storm Houston,TX.. I called and called and they made the Santander send them the titles without asking us.
Stealing my car right now add me
Add me
We also had a car totaled in 2021, Geico never even contacted me as the owner and totaled my car after a rear impact from another Geico insured driver. Add me please.
I also had a vehicle totaled out by Geico- please add me – they also have raised my rates for no reason
Had 2 vehicles totaled by Geico in the last 6 months
Mazda cx 5 was completely destroyed in the front. But my Kia Optima was just rear ended by someone else. Both vehicles undervalued by thousands of dollars. We live in N.J. Any help would would be appreciated. It’s Impossible for single-family’s to take on big insurance companies by themselves.
add me please
2021 settlement total loss 1500 dollars less than what i found