The New Jersey Department of Banking and Insurance says it has driven the return of more than $10.5 million in wrongly charged premium to New Jersey auto insurance policyholders, and has issued a $1.2 million penalty to GEICO and its affiliates for improper business practices.

According to the department, the results come from a market conduct exam released Tuesday that began in September 2024 after consumer complaints. The department says the exam found a systemic pattern of improper practices affecting more than 15,000 policyholders across multiple GEICO companies.

What the exam cited

The department says the exam cited GEICO in four areas:

• Charging rates higher than what the department had previously approved.
• Cancelling policies for improper reasons.
• Failing to include required language on notices that could lead to policy nonrenewal.
• Failing to make total loss vehicle owners who keep the vehicle after settlement aware of their rights.

The exam covered Government Employees Insurance Company, Geico Secure Insurance Company, Geico Choice Insurance Company, Geico Indemnity Company and Geico Casualty Company. The department says GEICO voluntarily began issuing refunds during the exam as errors were identified.

“Consumer protection is at the heart of our mission here at the Department of Banking and Insurance, and we will continue to work aggressively to end bad business practices that are harming New Jersey consumers,” said Acting Commissioner Susan Ochs.

Questions or complaints

The department says New Jersey residents who have questions about this enforcement action, or who want to file a formal complaint against any insurance company operating in the state, can file online or call its Consumer Hotline at 1-800-446-7467 or 609-292-7272.

The department’s release does not say how affected policyholders are being contacted.