GEICO Faces Class Action Lawsuit Alleging Excessive Premiums During Pandemic

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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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