Skip to comments.Group: Geico Insurance Rates 'Very Unfair'
Posted on 03/20/2006 5:25:49 PM PST by mathprof
A leading U.S. consumer group Monday accused Geico Corp. of using consumers' education backgrounds and occupations as criteria in setting auto insurance rates, resulting in discrimination against minorities and lower-income people.
The Consumer Federation of America (CFA) charged that the No. 4 U.S. auto insurer, has adopted rating methods and underwriting guidelines in 44 states that directly tie rates to education and occupation.
Geico, a unit of Berkshire Hathaway Inc. (BRK), the insurance and investment company controlled by billionaire Warren Buffett, rejected the charges. It called them "an offensive attempt to link fundamentally fair and actuarially sound industry practices with invidious discrimination."
The insurer provides auto insurance to more than 6 million policyholders, and insures more than 10 million vehicles.
Robert Hunter, the CFA's director of insurance and a former Texas insurance commissioner, called Geico's rate-setting policies an "underwriting sleight-of-hand" that can shortchange thousands of drivers.
Under Geico's guidelines, he said, a New Orleans factory worker without a high school education would pay $2,636 for insurance, 91 percent more the $1,382 that a white-collar worker with a graduate degree would pay for the same vehicle and location.
(Excerpt) Read more at foxnews.com ...
Stupid people can't compare rates.
"Unfair" would be forcing everyone the pay the same rate, despite differences in risk.
I had Farmers(?) Insurance.
The new gecko commercials are wretched. I liked the originals, kind of.
Anybody that would sign up for Auto Insurance from a lisping British Gecko deserves the rate they get!
I have no idea if they do this but I do know that when we retired and moved back to Pennsylvania from Virginia we called Geico for a rate. We then called Allstate, Progressive and State Farm. Allstate was the cheapest for the same coverage on all quotes.
Geico is not licensed in Massachusetts.
Stupid people should be charged more for everything.
If they don't like Geico's rates they should buy from another carrier. But then they'd miss all the fun of being a "victim."
I don't believe this. I saved a ton with Geico! (and I am an idiot)
Saved almost 400 dollars a year and a bit more coverage to boot.
No complaints so far.
I'm a plumber so I suppose that's why I get a lower rate too.
As witnessed so far on this thread. Some 'conservatives' don't know the meaning of capitalism.
I guess this includes those twits over at DU :)
I don't care if their commercials have Barbara Mikulski playing a tuba dressed in a thong. Their rates are hundreds of dollars lower than the " good neighbor's".
In the PRM (P. R. of Massachusetts) we are forced to buy from a limited number of mostly in-state insurers. Low risk drivers like me subsidize high risk drivers, but the issue is far too politically charged for anyone to touch it.
Are you calling me a liar?
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