GEICO Faces Trimmed Suit Over Covid-19 Auto Insurance Rates

GEICO Casualty Co. got most claims cut from a proposed class suit in federal court alleging it charged car insurance customers excessive premiums while the Covid-19 pandemic kept drivers off the roads, resulting in far fewer claims and “windfall” profits.

But the company must face claims under the Arizona Consumer Fraud Act alleging it deceptively represented it was “passing on savings” from the reduced driving to consumers, the U.S. District Court for the District of Arizona said.

Geico started a “GEICO Giveback” program in Spring 2020, which gave new and preexisting customers a 15% credit to buy or renew a ...