GEICO has requested a rate increase – and has settled a class-action lawsuit

A substantial number of people currently insured by GEICO might be subject to a rate increase of over 11%.

Info on the GEICO rate increase 1

• Two of the GEICO underwriting companies in NJ filed for an auto insurance rate increase on August 31, 2009 with the NJ Department of Banking and Insurance.
• Rate increase filed: 11.2% on average
• Some customers may have a maximum rate change of 17.41% (for GEICO Indemnity Company) and 15.86% (for GEICO Casualty Company)
• Underwriting companies that made the filing: GEICO Indemnity Company & GEICO Casualty Company. They account for approx 30-50% of GEICO auto insurance customers in NJ.
• Total number of people affected: 170,461
• This would be effective for all new policies from November 28, 2009, and for all policies up for renewal after January 11, 2010

Info on the GEICO settlement of the class-action lawsuit 2

• GEICO agreed to pay an estimated $5.9 million to settle a federal class-action suit
• The settlement officially does not admit guilt
• The plaintiffs charged that GEICO failed to disclose prominently to online purchasers of the "basic" automobile policy that they would be insured for far less than the $250,000 Personal Injury Protection mandated in New Jersey before the statute took effect.
• link with information for class action participants below.

More information about the settlement for claimants

1) GEICO filed for 11.2% rate increases for its NJ Indemnity Company and Casualty Company auto
insurance customers on August 31, 2009 with the NJ Dept of Banking and Insurance. They requested this
rate increase become effective on November 28, 2009 for new business.

2) Source: Daily Legal Briefing from the New Jersey State Bar Association, October 5, 2009