GEICO $5 Million Tax Suit Settlement Approved by Federal Court

A federal judge gave final approval to a $5.1 million settlement agreement between GEICO Indemnity Co. and Georgia policyholders, concluding a suit accusing the insurance company of not fully covering the replacement costs of taxes assessed on vehicle purchases.

The money will be disbursed among more than 31,000 class members who made claims from April 2014 through December 2019 and weren’t compensated for the state title ad valorem tax—the tax paid when a customer buys a car—for cars that would have been less costly to replace than to repair. Georgia replaced its sales tax on automobiles with the TAVT in ...