Recently, Geico, a major insurance corporation, was involved in a total class action lawsuit in California. Plaintiffs in the lawsuit alleged that the company failed to pay sales tax to members insured under its California auto insurance policy when paying total loss claims between 2017 and 2020.
When damages to a vehicle are higher than the value of the car, the vehicle may be declared a total loss. Geico may pay a total loss claim for the actual cash value of the vehicle. However, Geico failed to pay sales tax and regulatory fees when paying out claims.
Plaintiffs in the Geico class action lawsuit claimed the negligence to pay sales tax and regulatory fees violates California state law and the company’s insurance policies. Although Geico did not admit wrongdoing, the company agreed to pay claimants $19.1 million in efforts to resolve the dispute.
Members in the class action lawsuit against Geico can receive payment for unpaid regulatory fees and unpaid sales taxes. As listed on the settlement website, individual payments may be $2,051.98 on average, with some members receiving higher or lower payments.
Members who stand to benefit from this class action lawsuit are those who were insured under California’s auto insurance policy through Geico, submitted a claim between June 2015 to Oct 2016 or between June 2017 and August 2020 and were not paid sales tax or regulatory fees on a claim.
Class action lawsuit members may receive payment from the settlement by submitting a valid claim form by November 11, 2022. Those who do not qualify for the settlement should not file a claim. Eligible individuals may join the class action lawsuit against Geico by consulting a lawyer.