Breach of Contract Claim Slashed from Calif. GEICO COVID-19 Premium Case

SAN FRANCISCO — A California federal judge has dismissed with prejudice a claim for breach of contract from a lawsuit accusing GEICO Casualty Co. of charging inflated auto insurance premiums during the early days of the COVID-19 pandemic.

On June 14, Judge Beth L. Freeman of the U.S. District Court for the Northern District of California held that because the claim is based upon GEICO’s alleged violation of the covenant of good faith and fair dealing, it needed to be based upon a specific contractual provision in the policy, which the plaintiff failed to do.

Plaintiff Jessica Day alleges …