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 ...
I've been with State Farm for over 20 years, never had a single issue, my rates have dropped consistently over the years, never had them raised due to claims, and took care of all my claims fast and sent me to very good repairshops, or sent very good mobile glass guys to my office (gotta love that). Living in the Bay Area, you get your car windows smashed in, it's just gonna happen, and State Farm has never blinked.
I know I have it good, I pay less than $100 a month for full coverage on a sports car and 50K homeowners on the apartment. I've talked to friends who live in places like Detroit, and the rates they pay are sheer highway robbery. I don't know why mine is so much cheaper, but I'm not complaining! My policy is truly average, average deductibles, nothing special, but no cut corners, either.
I have had my chance to say "I told you" to my siblings, who ran around like Speed Racer in their 20's and 30's racking up tickets and a few collisions that were their fault (nobody hurt, thank God). They pay astronomical rates, due to their driving records. "It's just a ticket" has changed to "I have to pay HOW much??!?!"
I can't wait until their kids start driving. Now I know why my dad tried to keep us away from the wheel! 5 kids in the teens and twenties? Yikes!
THAT, of course, depends upon the particular lowrider in question. Are you talking about a Good Guys custom classic Ford '49, chopped, channeled, shaved, painted, and polished down to the very last valve stem cap?
...or...
Are you talking about that rusted out '63 Impala with the "bicycle tires" and the blown stereo speakers that rattles and clanks along with the mariachis blasting half-drunk out of the driver's window that doesn't roll up anymore?
In the first case, you're talking about a very special type of insurance that is based primarily on "Actual Cash Value" established on the appraisal of highly qualified experts. This insurance is the most expensive.
In the second case, you're talking about comprehensive insurance; coverage that takes care of everyone's injuries and other people's stuff. Getting this kind of coverage is about as low-budget as you can go.
Of course, anyone who puts $10,000 in aftermarket stuff into a $25,000 vehicle, would be smart to discuss it with an independent insurance broker who could provide advice about whether "off-the-shelf" coverage is enough and, if not, what additional coverage might be in order, from who and at what cost.
I used to have insurance with GEICO, but I dropped them because I saved 15% by switching to another company. I checked their rates again not long ago, and they were still higher. GEICO could drop their rates significantly if they would cut back on the endless, obnoxious advertisements. They probably chase away more customers than they pick up that way.
Government Employee Insurance Company
Why is this a surprise? The left is pushing us toward a collectivity which sets prices and rates for everyone and makes them the same for all except a rich privileged elite class.
I live here. The insurace agencts have anough clout to keep them out, in order to preserve their own commissions. I regret that it's against the law for us to save a bunch of money by switching to Geico.
Alas, poor Bob. His wife didn't "know him well"!
Bob's product isn't for "getting it up" (that's Levitra & Viagra). Bob is advertising a "natural male enhancement" - That's why all the references to "big" in the commercial, and why Bob always has a big grin.
It used to be that you only got penis enlargement ads thru email spams - but now you can see it on TV.
My 72 year old mother called me from Florida and complained about all the penis enlargement emails she keeps getting. She says, "I don't even have one!".
Bump for later. FReeping by Blackberry is a slow process.
SF was about $85 cheaper every 6 months for me.
…resulting in discrimination against minorities and lower-income people.
Most likely, people with high credit scores are more likely to pay middling damages out of pocket rather than submit claims (because they have the resources to do so, and because they understand that it's cheaper in the long run to avoid the resulting rate increase).
Colorado Springs is a beautiful location, but don't count on paying a whole lot less for your car insurance. Colorado has some of the highest insurance rates in the nation because Colorado also has the highest percentage of uninsured motorists on the road. The last number I heard reported was that 3 in 10 drivers on the road in CO do not have insurance. When we moved from CO to Nebraska, we cut our auto insurance premiums almost in half and we increased our coverage slightly.
We've also been GEICO customers for over 18 years and we've never had a problem. Excellent help when someone else hit us, courteous service on the phone, and now we can do most anything online ourselves. We just bought a newer vehicle (out of state) and I went online and added it to our policy, took off the old vehicle, and printed out my coverage for a temp proof of insurance while driving home. We're pretty happy with GEICO. At least they're not jacking our rates every six months like clockwork (even with no tickets or accidents) like State Farm did when we had them.
In view of how our society views men, that all seems entirely logical (to the left).
Discrimination selectively applied by the chosen is not discrimination. It's payback.
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