The judge also pointed out that Day had identified questions of law or fact that are common to the class, and those questions include whether Geico had a general policy or business practice of overcharging rates that were not based on an accurate risk assessment and whether it was routine for the insurer to fail to provide adequate refunds to its policyholders.
According to the record, Plaintiff Day alleges that Geico uniformly began a one-time 15% premium credit to policyholders without taking into consideration individual circumstances, such as driving habits. Day also alleges unfair business practices and a breach of the covenant of good faith and fair dealing.
In March 2021, Day filed her lawsuit accusing Geico of “unfairly profiting” from premiums they received during the pandemic, particularly during the time mandatory lockdowns were in place and there were fewer drivers on the roads.
According to the complaint, in April 2020, the number of miles that Californians traveled decreased by as much as 77%. Day cited to a joint report from the Consumer Federation of America and the Center for Economic Justice which found that a minimum 30% premium refund would have been the appropriate percentage during the pandemic’s first six weeks alone.
