Florida Customers Reach Deal with Geico to End Car Fees Suit

James Hatton | Legal Staff Writer & Elizabeth DiNardo, Esq.


On December 18, 2019, a proposed $27 million settlement was submitted to Florida federal court Judge Paul G. Byron for preliminary approval, bringing an end to class claims between more than 250,000 Geico customers and the insurance provider. The alleged claims arose from customers who filed insurance claims with Geico for damaged cars declared “totaled” and were denied coverage for approximately $80 in fees when registering a new vehicle.

According to the Court, transferring a title in Florida costs $75.25 and switching tags costs $4.10—both required under state law in order to register a vehicle. The settlement also obligated Geico to amend its policies and pay all title transfer and licensing fees in any actual cash value claim for a “totaled” car in Florida.

The certified class consists of Florida residents insured for private passenger auto physical damage coverage by Geico, who suffered a first-party total loss of a covered, owned vehicle at any time from 2012 to April 2019. The settlement excludes leased vehicles insured by Geico. If approved by the court, the $27.54 million settlement would net $5.6 million in attorney’s fees.

The case is: Sullivan et al. v. Government Employees Insurance Co., case no. 6:17-cv-00891 in the U.S. District Court for the Middle District of Florida.


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