October 23, 2026
Jim Walsh/USA TODAY NETWORK via Reuters Connect
The New Jersey Department of Banking and Insurance ordered Geico to issue more than $10.5 million in refunds to thousands of customers who were overcharged for their insurance or did not receive proper notifications related to their policies.
Geico has been ordered refund more than $10.5 million to New Jersey policyholders who were overcharged for car insurance premiums and not properly informed about details related to their accounts, the state's Department of Banking and Insurance said.
About 15,000 Geico customers were impacted by violations that state investigators uncovered after receiving complaints about the company's practices. The probe, which started two years ago, uncovered a "systemic pattern" of adding improper costs that were not in compliance with state regulations, state officials said. The violations were found across several Geico-owned companies.
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Investigators said Geico charged customers with insurance rates that were higher than the amounts previously approved by the state, canceled policies for unsupported reasons and failed to disclose required language on notices that would warn customers about their policies not being renewed. The company also did not inform customers of their rights in cases involving vehicles determined to be total losses.
The state said Geico voluntarily began refunding consumers during the investigation as the errors were identified. The company's overcharging and other other violations occurred from June 2023 to May 2024.
"Geico has already taken steps to address the department's recommendations," a company spokesperson said Friday.
In addition to the refunds, the state ordered Geico to pay a $1.2 million penalty.
"We will continue to work aggressively to end bad business practices that are harming New Jersey consumers," Susan Ochs, acting commissioner of the Department of Banking and Insurance, said in a statement.
New Jersey residents can file formal complaints against insurance companies operating in the state online or by contacting the state's consumer hotline at (800) 446-7467.
