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Geico to refund about 15,000 New Jersey policyholders after state investigation
New Jersey regulators say Geico overcharged customers and violated other insurance rules, ordering more than $10.5 million in refunds and a $1.2 million penalty. The violations occurred from June 2023 through May 2024, and the company began issuing refunds during the investigation.
New Jersey has ordered Geico to return more than $10.5 million to roughly 15,000 policyholders after state investigators found the insurer charged unapproved rates and violated other insurance rules.
The state Department of Banking and Insurance announced the order Oct. 23, along with a $1.2 million penalty. The violations occurred between June 2023 and May 2024 across several Geico-owned companies, according to the department.
Investigators began examining the company’s practices after receiving consumer complaints. Their two-year probe found what state officials described as a systemic pattern of improper charges. The department said Geico billed premiums above rates approved by the state, canceled policies for reasons it could not support and failed to include required warnings in notices about nonrenewals.
The investigation also found that Geico did not tell some customers about their rights when their vehicles were deemed total losses. The company began refunding customers voluntarily as errors came to light during the inquiry, the state said.
“Geico has already taken steps to address the department’s recommendations,” a company spokesperson said Friday.
“We will continue to work aggressively to end bad business practices that are harming New Jersey consumers,” acting Insurance Commissioner Susan Ochs said in a statement.
New Jersey residents who have concerns about an insurer can file a complaint online with the Department of Banking and Insurance or call the state’s consumer hotline at 800-446-7467.