Geico Faces $2M Settlement Over Unpaid Replacement Fees
Geico policyholders may get compensation from a $2M settlement for unpaid vehicle replacement fees.
On July 1, a plaintiff urged a New Jersey federal judge to approve a nearly $2 million settlement with Geico.
Plaintiff Diane McCoy filed for preliminary approval of the Geico class action settlement, which aims to resolve allegations that the insurance company failed to pay title or registration transfer fees for total loss vehicles.
Approximately 33,000 Geico policyholders may qualify as class members. If the settlement is approved, these class members could receive compensation valued at about 90% of the title and registration transfer fees.
The Geico class action lawsuit alleges that the insurer failed to pay mandatory replacement fees. McCoy’s lawsuit followed the total loss of her car in a 2018 accident. Despite receiving approximately $3,500 from Geico for her loss, this amount did not cover the mandatory title or registration transfer fees, which McCoy argues should be included as part of the “replacement cost” for a total loss vehicle. She claims Geico’s omission constitutes a breach of contract.
McCoy filed the lawsuit on behalf of herself and other Geico policyholders who…