Lawsuit: GEICO Skims Off Mandatory Fees from Totaled Vehicle Payments

New to ClassAction.org? Read our Newswire Disclaimer

GEICO Indemnity Company is on the receiving end of a proposed class action lawsuit claiming it failed to pay consumers the actual cash value (ACV) of vehicles involved in car accidents that were considered a total loss. The plaintiff alleges that he filed a claim with the defendant after his 2004 Jeep Liberty, which was covered under one of GEICO’s insurance policies, was totaled in an accident. According to the policy, the defendant was obligated to pay the ACV, which is defined as the “replacement cost of the auto or property less depreciation or betterment.” The plaintiff argues that GEICO unlawfully failed to account for title and registration fees in its ACV calculations despite including other “mandatory fees” such as sales tax. The suit claims that the defendant owes the plaintiff a minimum of $82.60 for the title and license plate transfer fees associated with replacing his vehicle.