New Jersey regulators announced that GEICO is returning more than $10.5 million in improperly charged premiums and will pay a $1.2 million penalty following a market conduct examination that identified violations affecting more than 15,000 policyholders.

The examination began in September 2024 after consumer complaints and covered five companies: Government Employees Insurance Company, GEICO Secure, GEICO Choice, GEICO Indemnity and GEICO Casualty.

The Department of Banking and Insurance identified four areas of concern: charging rates above approved levels, canceling policies for improper reasons, omitting required language from notices that could lead to nonrenewal, and failing to inform customers of their rights when retaining a vehicle after a total loss settlement.

The department described the findings as a “systemic pattern of improper practices.” Its examination report includes recommendations to correct procedures that harmed consumers or failed to comply with New Jersey law.

GEICO voluntarily began issuing refunds during the examination as errors were identified. The department announced the enforcement action and released the examination report on October 20.