GEICO Returns $10.5 Million to New Jersey Policyholders

The New Jersey Department of Banking and Insurance has ordered GEICO to return more than $10.5 million in wrongfully-charged premium back to policyholders. The department also issued a penalty of $1.2 million to GEICO and its affiliates for improper business practices. The returned premiums and penalty are the result of a market conduct exam that covered GEICO’s private passenger automobile insurance business during the period June 1, 2023 to May 31, 2024 in response to consumer complaints. During the course of the examination, the department identified what it called a “systemic pattern of improper practices” affecting more than 15,000 policyholders across multiple GEICO companies. The department’s examination cited the company in four areas: charging rates higher than what were previously approved by the department; cancelling policies for improper reasons; failing to disclose required language on notices that could lead to policy nonrenewal; and failing to make total loss vehicle owners who retain the vehicle after settlement aware of their rights. The department said GEICO voluntarily began issuing refunds during the examination process as the errors were identified. Topics New Jersey Was this article valuable? Thank you! Please tell us what we can do to improve this article. Thank you! % of people found this article valuable. Please tell us what you liked about it. Here are more articles you may enjoy.