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GEICO has unfairly profited off the coronavirus pandemic, raising premiums despite the fact there was a huge drop in auto accidents, a new class action lawsuit alleges.
Plaintiff Richard Rose filed the class action lawsuit against GEICO Casualty Company, GEICO Indemnity Company and GEICO General Insurance Company Friday in a Mississippi federal court.
“While most companies, industries and individuals have suffered because of the COVID-19 pandemic, auto insurers like GEICO have scored a windfall,” the class action alleges.
Due to stay at home measures enforced across the country, the claim states, there has been a dramatic reduction in driving, and therefore a reduction in driving-related accidents.
As a result of the decrease in driving and accidents, the premiums charged by auto insurance companies like GEICO during the pandemic are “unconscionably excessive,” according to the class action.
Rose cites one published report that conservatively calculates that at least a 30 percent refund of premiums would be required to make up for the excess amounts paid by consumers from March to April 2020.
“Despite full knowledge of these facts, GEICO has continued to charge and collect excessive premiums, and has failed to issue adequate refunds,” the class action lawsuit states.
Rose says GEICO has a “Giveback” program that applies a 15 percent discount or credit on new and renewal auto policies, but it is “woefully inadequate” to compensate for the excessive premiums customers have already paid as a result of COVID-19.
He alleges GEICO has violated federal and Mississippi laws through its conduct.
In his case, Rose says when he renewed his car insurance policy for two vehicles through GEICO in July 2020, his premium went up by over $100 over six months.
He says this happened despite the “drastic decrease” in travel and automobile accidents during 2020.
Rose is looking to represent all Mississippi residents who bought auto insurance from GEICO from March 2020 to now. He is suing for breach of contract, breach of the duty of good faith and fair dealing and unjust enrichment.
Rose is seeking certification of the class action, an injunction, damages, disgorgement of profits, fees, costs and a jury trial.
Meanwhile, consumers affected by a recent GEICO data breach may have found that there was an attempt to use their driver’s license information fraudulently, such as to collect unemployment benefits.
If you received a GEICO data breach notice and someone has attempted to use your driver’s license information fraudulently you may be able to join this GEICO data breach class action lawsuit investigation and pursue compensation. Click here for more details.
Did your auto insurance premiums go up or remain the same during the pandemic? Let us know in the comments!
The plaintiff is represented by Brian K. Herrington of Chhabra Gibbs & Herrington PLLC.
The GEICO Auto Insurance Pandemic Class Action Lawsuit is Rose et al., v. Geico Casualty Company, et al., Case No. 3:21-cv-00385-CWR-FKB, in the U.S. District Court for the Southern District of Mississippi Northern Division.
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66 thoughts onGEICO Faces Class Action Lawsuit Alleging Excessive Premiums During Pandemic
My son and I have been using Geico for years. The price went up during the pandemic and the engine died by vandalism which I was not paid for. We put the car in the Toyota dealership to repair and discovered it was totaled. We never received a dime. Santander repossessed it right from the dealership. What a nightmare!
I had insurance with GEICO during the pandemic
Not Only did my premiums go up, but when my vehicle had been disabled due to mechanical failure, they refused to assist in the repair, and made me continue to pay an absurd premium while I had it in the shop during the pandemic, stating there was, “no way to suspend the coverage”; when I had signed up, I had mechanical breakdown coverage through SafeCo in California, and was told they transferred ALL of my applicable coverages when I switched.
After multiple phone calls, and 9 months of this nonsense during , a rep finally suggested I reduce my coverage to a bare minimum, costing 1/4 of my full coverage. GO GEICO!
Tengo el problema similar a los demas
De 327 $ al mes pasaron a 595$ dicen haber enviado una carta pidiendo cancelar un seguro por no tener seguro (??). Razon que el Estado de Florida exige , Jamas en años tuve algo igual , al no responder esa carta ( que nunca recibi ) me aumentaron el costo y por estar en pago automatico y al preguntar el motivo del aumento me dijeron que no van a reintegrar el dinero cobrado en exceso
Add Me
Add My Husband also they went up on our insurance last year
Add Me
Add My Husband also they went up on our insurance last year more then a 1/3 up just crazy.
They took our car from infront our house and pay Santander after I clearly told I wanted my car. Santander was told not to send my titles to Them and they stole our car and titles right from under us. I call and emailed them for weeks.
Count me in !
I left Geico due to they raised my rates and made me uninsurable with other companies after they said we had TWO at-fault accidents on the SAME day at the same time, same car. This accident was me being parked (I was not in the car), and an uninsured driver hitting me and leaving. NO fault on my account. An eye witness collected info from the other driver.
Somehow Geico listed this as TWO at-fault accidents, one with me driving and one with my husband driving. It has been over 4 years, and I am STILL trying to get this bogus thing off my record. And Geico didn’t make much effort to collect from the other driver, so I had to pay the deductible also.
I am having the same problem with Geico. My car was park on the street outside my apartment complex on June 21,2022. I was in my residence at the time when I heard a loud boom not thinking that it was my car when I got up to look someone was speeding off. My neighbor witness what saw and even told the claims rep what happen as well as wrote a police report They told me since I don’t have collusion they won’t pay. I have been with this company for 4 years paid my insurance faithfully.I will tell anyone that all these iinsurance companies are taking money from all of us. They tell me since I live in Ohio my coverage I had will not cover me . Yes please put me in this class action suite
contact an injury attorney immediately. They are trying to reject your claim, and the ONLY way will be litigation with an ATTORNEY; I hope that they’ve continued to communicate so you’re not out of statute of limitations. Good Luck