GEICO Blocks Class Certification in Suit Over Covid-Era Premiums

GEICO Casualty Co. persuaded a federal judge to deny class certification to policyholders claiming they were charged unlawfully high auto insurance premiums during the Covid-19 pandemic.

“The proponents need to further show that a class action is superior to other available methods of resolving the controversy,” said Judge Sharon J. Coleman, of the US District Court for the Northern District of Illinois.

The drivers are suing for deception and unfair conduct under the Illinois Consumer Fraud and Deceptive Business Practices Act. The lead plaintiffs have said more than 300,000 people could be part of the proposed class action. They allege GEICO charged excessive premiums during the pandemic, failing to account for the reduction in driving and related decreased insurance risk.

The court granted GEICO’s motion to strike the class of proposed plaintiffs alleging deception, reasoning the plaintiffs did not present a common injury.

While the proposed class alleging unfair business practices had an alleged common injury, the court found they did not present a way to fairly calculate how damages would be divided among the class, striking their certification, too.

"[W]ithout presenting a reliable methodology, '[q]uestions of individual damage calculations will inevitably overwhelm questions common to the class,” Coleman said. “The Court gives Plaintiffs 30 days to cure these deficiencies.”

Stephan Zouras LLP and others represent the plaintiffs. Duane Morris LLP represents GEICO.

The case is Thomas v. GEICO Casualty Co., N.D. Ill., 1:20-cv-04306, 3/12/24