Geico car claims underpayment class action settlement

GEICO Government Employees Insurance Company - corporate offices headquarters sign.

Geico agreed to a class action lawsuit to settle claims.

The settlement benefits Florida healthcare providers who, during the class, have made a claim for reimbursement to a non-life insurance policy that Geico has paid 80% of, with the code “BA” appended to the benefits explanation or rating. Applicable policies include Florida motor insurance policies from Geico that include a no-fault policy endorsement indicated by endorsements such as “FLPIP (01-13), “FLPIP (07-15)” and “FLPIP (01-18). †

Applicable class periods vary depending on the Geico insurance company that issued the relevant policies:

  • Geico Indemnity Co.: June 15, 2017 to May 31, 2022.
  • Geico General Insurance Co.: May 7, 2014 to May 31, 2022.
  • Geico Casualty Co.: June 15, 2017 to May 31, 2022.
  • Government Employee Insurance Co.: June 15, 2017 to May 31, 2022.

Geico is an insurance company that provides insurance policies for drivers, business owners, homeowners, and more. Some Geico auto insurance policies offer protection against personal injury (PIP) terms and conditions, which help pay medical expenses as a result of a car accident.

Plaintiffs in the Geico class action lawsuit accused the insurer of misinterpreting the terms of its personal injury protection policies. As a result, Geico would have underpaid healthcare providers at an 80% rate per claim. The PIP class action lawsuit states that providers must receive 100% payment for these claims.

A plaintiff allegedly provided chiropractic services to a Geico policyholder in 2016 after the woman was in a car accident. However, when filing the claim with Geico, the plaintiff alleges that only $140 of the $175 billed amount was paid.

According to Geico PIP’s class action lawsuit, this payment policy violates Florida state law.

Geico has admitted no wrongdoing, but agreed to resolve these claims with a class action settlement.

Under the terms of the settlement, group members may receive an adjustment to their claims to repay the 20% of the claim originally unpaid by Geico.

Class members are also eligible for an increased payment of 10% of these payments and $9 per claim form submitted as additional benefits of the Geico Settlement.

The deadline for exclusion and objection is August 15, 2022.

The final approval hearing for the settlement is scheduled for December 2, 2022. Class members are not required to attend this hearing, but have until November 2, 2022 to send their summons to appear if they wish to speak with the court about the settlement.

To receive a settlement claim, group members must submit a valid claim form by November 28, 2022. Multiple claim forms may be required if health care providers treat different insured persons for different accidents.