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.
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…