GEICO to face class motion lawsuit

The decide mentioned a category motion could be higher than particular person lawsuits, with the damages mannequin the plaintiffs supplied presenting an “acceptable proportion refund” over a size of time to handle manageability.

The case stemmed from policyholders objecting to GEICO’s announcement that it could provide $2.5 billion of auto insurance coverage credit – together with a 15% low cost on renewals – beginning April 2020 to mirror how individuals had been driving and entering into automotive accidents much less usually because the pandemic.

The complaining policyholders mentioned GEICO reaped a windfall because the receivable credit score fell ‘effectively brief’ of the ‘substantial and full reduction’ the insurer had claimed the credit offered, contemplating the lessened dangers on the street, Reuters first reported.

The class motion – Day v. Geico Casualty Co et al, U.S. District Court, Northern District of California, No. 21-02103 – would cowl California residents who purchased automotive, motorbike, or RV insurance coverage from GEICO between March 1, 2022, and now.

GEICO can be defending towards the same federal lawsuit in Chicago, the place it beforehand satisfied an appeals courtroom to uphold the decide’s dismissal of the case.

Other insurers who supplied pandemic-related refunds to policyholders embrace State Farm and Allstate.