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The state of New Jersey asked GEICO to refund more than $10.5 million to more than 15,000 policyholders and fined an additional $1.2 million because it overcharged auto insurance premiums and involved four violations.
new Jersey Officially announced that GEICO insurance company was accused of overchargingpremium price New Jersey customers must refund more than $10.5 million in auto insurance premiums. In addition, the state also fined GEICO and its affiliates $1.2 million for unfair business practices.
The enforcement action, which affects more than 15,000 policyholders, stems from a market conduct investigation launched by state investigators after receiving consumer complaints in September 2024.
new state Inspectors documented four specific violations by the insurance company, including: charging premiums above state-approved rates, canceling policies for improper reasons, omitting required terms in non-renewal notices, and failing to inform owners of total-loss vehicles of their rights if they chose to keep the vehicles after receiving compensation.
Acting Commissioner Susan Ochs said, “Protecting consumers is at the core of our mission at the Department of Banking and Insurance, and we will continue to work aggressively to stop bad business practices that harm New Jersey consumers.”
Oakes said the settlement and refund demonstrate the department’s commitment to maintaining a trustworthy and responsible marketplace.
GEICO began issuing voluntary refunds after reviewers found some errors during the review process.
The investigation was conducted by the Market Conduct Examination Unit of the New Jersey Department of Banking and Insurance, which regulates insurance companies to ensure they comply with state laws and treat customers fairly.
If New Jersey residents have any questions about this enforcement action or wish to file a complaint against their insurance company, they can call the department’s consumer hotline at 1-800-446-7467 or submit a report through the New Jersey Department of Banking and Insurance’s official website.
Summary FAQ
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A state investigation found that GEICO charged New Jersey customers premiums above approved rates, and must return more than $10.5 million to more than 15,000 affected policyholders.
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NSW inspectors recorded a total of four breaches, including charging more than the approved rate, canceling the policy for improper reasons, omitting required terms in the non-renewal notice and failing to inform the owner of the total loss of their rights when retaining the vehicle.
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The investigation was conducted by the New Jersey Department of Banking and Insurance’s Market Conduct Review Team. If the public has questions or wishes to make a complaint, they can call 1-800-446-7467 or submit a report through the bureau’s official website.
