GEICO Reaches Settlement With Georgia Customers in Car Tax Suit

GEICO Indemnity Co. and Georgia policyholders agreed to settle a class action lawsuit alleging the insurance company didn’t fully cover the replacement costs of the state title ad valorem tax—the tax paid when a customer buys a car—for clients’ totaled cars.

GEICO agreed to pay about $5.1 million, the total alleged underpayments, to more than 31,000 class members who made claims from April 2014 through December 2019 and were underpaid for their loss. The plaintiffs filed an unopposed motion for preliminary approval of the agreement Monday in the US District Court for the Middle District of Georgia.

Georgia replaced its ...