The Geico insurance company is among the best for people seeking cheap car coverage. However, the company has agreed to settle a class action suit over its failure to pay customers specific fees. Now, a New Jersey judge must only approve the settlement before the impacted Geico insurance policyholders can expect a payout. 

Here’s what happened to cause the class action suit.

What caused this class action suit against the Geico insurance company?

According to Top Class Actions, the Geico insurance company has agreed to pay a group of its customers $1.9 million to settle a lawsuit. This comes after the well-known company failed to pay about 33,000 of its customers for title and registration fees after their vehicles were deemed total losses. 

Diane McCoy filed this class action suit against Geico after she got into a car accident in 2018. Geico considered her vehicle a total loss and paid her $3,500 for its value. However, this amount did not include the title or registration transfer fees. It’s notable that New Jersey, where she filed the lawsuit, makes this payment mandatory. Essentially, the lawsuit accuses the Geico insurance company of “breach of contract” due to the oversight. 

It’s important to note that Geico has stated that it will pay replacement fees in New Jersey for totaled vehicles moving forward. According to the outlet, McCoy requested that the judge approve the settlement, which she calls “fair, reasonable and adequate.” Of course, it’s unclear how much the impacted drivers will get after the legal representation gets their cut.