GEICO is returning $10.5 million to New Jersey drivers after state order
GEICO, the giant auto insurance company, must refund over $10.5 million.
The short version
- New Jersey regulators caught the company charging unapproved, higher rates.
- Over 15,000 policyholders across the state are owed money back.
- Check your auto insurance statements for sudden overcharges or refunds now.
Check your auto insurance statements this week if you drive in New Jersey. The New Jersey Department of Banking and Insurance just ordered GEICO, the giant auto insurance company, to return more than $10.5 million to local policyholders, according to Insurance Journal.
Regulators also slapped the insurer with a $1.2 million penalty for improper business practices. The massive payout stems from a year-long market conduct exam running from June 2023 to May 2024, sparked by a flood of angry consumer complaints. Investigators uncovered what they called a systemic pattern of improper practices affecting more than 15,000 drivers across multiple GEICO companies.
The state found the company charging rates higher than previously approved, canceling policies for improper reasons, and leaving out required notice language that could cause nonrenewals. Investigators also caught GEICO failing to inform total loss vehicle owners of their rights when keeping their wrecked cars after settlement.
The good news is that GEICO voluntarily began issuing refunds during the examination as errors came to light. For any local business owner or family running cars in Lakewood or anywhere in the Garden State, it is a sharp reminder to check every renewal bill for sneaky rate hikes. Watch your mailbox for a surprise check from your insurer.
