CHHABRA GIBBS & HERRINGTON PLLC FILES CLASS ACTION LAWSUIT AGAINST GEICO FOR COVID-RELATED AUTO INSURANCE PREMIUMS.
On June 4, 2021, Plaintiff Richard Rose, represented by Chhabra Gibbs & Herrington PLLC, filed a class action lawsuit on behalf of all Mississippi residents against GEICO General Insurance Company, et al. (“GEICO”) for overcharging for automobile insurance during the pandemic.
In response to the coronavirus outbreak in early 2020, Mississippi Governor Tate Reeves issued state-at-home and/or shelter-in-place orders that resulted in a drastic reduction in automobile travel on Mississippi roads and highways. Because of that drop off in travel, there were fewer auto accidents. Therefore, insurance claims also decreased dramatically.
For example, during the week of April 5-11, 2020, the miles traveled on Mississippi roads declined by a whopping 56%. There’s no question that auto accident claims also greatly decreased. Despite this remarkable reduction in auto accident claims, GEICO continued to charge its Mississippi customers premiums based on pre-COVID travel and accident data.
Put bluntly, while the pandemic kept car wrecks – and thus claims – to historic lows, GEICO continued to rake in premiums from its Mississippi customers as if there was no pandemic at all.
To add insult to injury, in the Spring of 2020, GEICO announced the “GEICO Giveback.” Under the program, GEICO gave customers a 15% credit on their personal auto insurance premiums, but only if they were new customers, or existing customers who renewed their policy during the applicable time.
Specifically, the credit was given for six-month policies renewed or newly purchased between April 8, 2020, and October 8, 2020, and twelve-month policies renewed or newly purchased between April 8, 2020, and October 7, 2021.
GEICO’s credit program was inadequate to compensate for the excessive premiums that its customers paid because of COVID-19. For existing customers who renew their policies, the credit did not apply at all to excessive premiums that the customer paid on their previous policies.
And even with respect to new and renewal policies, the 15% credit is nowhere near the refund that should have been given to GEICO’s customers.
If you or someone you know had GEICO auto insurance during 2020, please call us at 601-948-8005 to discuss your rights. At Chhabra Gibbs & Herrington PLLC, your case is our cause.