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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
GEICO did the unethical thing of leaving out medical payments when assessing my premium amount. They did so in order to get my business back from State Farm. I did not find out until I was in an accident later the year of the switch and needed to make claims for medical expenses. When corrected the GEICO policy was higher than the State Farm policy.
Yes my premium went up they claim they have discounts for federal but my shit still high. My insurance for 2 cars full coverage was 164.00 now it’s up to 197 what the hell and I have been with the for 16 years first then my husband had 2 accidents we left for 2 years then came back and this the thanks I get for all my years of service
The pandemic doesn’t mean anything to anyone because it’s the have and the have not’s no in between don’t be late
Add me to this action against GEICO
Add me. Ours went down in pandemic,but now we are being charged more for that I feel. Add me
my premiums went up $100 a month over the last year and a half. the excuse is because of the covid pandemic they had to increase. Load of horse hockey.
I’ve been a customer for years! Please add me.
Add me for the last 4 months my premium is crazy
As a monthly payer, I am being charged for an additional month with each renewal date. The additional month is the month before my renewal (I.e., for policy Nov 2021, I am being charged for October 2021? Please tell me if a lawsuit is pending for this issue.
Add me
Geico offered a credit for covid times but never credited us. We have 2 vehicles.
Add me, my premium went sky high! During Pandemic!