New Jersey officials accused Geico of overcharging motorists $10.5 million for car insurance and slapped the Maryland-based company and its affiliates with a $1.2 million fine for a “systematic pattern” of improper business practices.
Officials in the state Department of Banking and Insurance’s consumer protection office began investigating Geico in September 2024 after customers complained about the company’s underwriting and rating, claims, and policy terminations. The department released its findings Tuesday.
Investigators examined the company’s activity between June 2023 and May 2024 and found problems impacting more than 15,000 policyholders. They say Geico charged higher rates than the department approved, canceled policies for improper reasons, did not include required language on notices that could lead to policy nonrenewal, and failed to inform policyholders of their rights for those who kept vehicles declared a total loss…