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 ...
Are you aware that the head of Progressive is one of the major funders of MoveOn.org?
'"Unfair" would be forcing everyone the pay the same rate, despite differences in risk."
Another word would be socialism. Or I don't want to pay the market cost for my behavior.
Are there solid claim rate statistics to back up the tie-in to education and job? Either way, you can always change insurers.
That is Kidney/Shepherd's pie (like a chicken pot pie, but with bovine/ovine entrails as the main ingredients), and the chips are french fries.
I'm goint to (attempt to) start my Lotus Esprit now.
...."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.
"......
But the NOLA factory worker without a high school education automobile, probably sat under water for a few weeks,
while the white collar graduate degree policyholder drove out of town with his family early.
I think of that pic every time her mug is on TV.
IP,
True, true. There are also about 6 million people in MA, which makes it a little crowded sometimes.
But people are leaving, in droves. I hope to be one soon.
You have just ruined the rest of my life! ;-)
OI free pie and chips.
Who wouldn't want free pie and chips?
Same place as the free gov't cheese???
Yikes what an image! I just canceled (did not renew) my motorcycle insurance with "Progressive" after I found out where all my excess premium money goes and it ain't to the GOP. I guess the name "Progressive" should have been a warning.
Apparently there are discernable characteristics about a driver that are not based on race that predict the risk of loss. If a certain driver has a lower risk of loss, isn't it unfair to prevent him from getting insurance at a lower rate? Isn't it unfair to lump him in with other people who will have a much higher loss rate and drive his insurance rates up?
I have the same car (two xBs, actually). The funny thing is, Toyota created the Scion brand to be a low-cost leader to get younger people to buy Toyota. The mean age of people buying Scion xBs is, you guessed it, 42 years old.
Not that Toyota won't take the money. But the idea that Scion would be a youth brand has kind of fizzled. It is funny to stand around the Scion showroom with all the flashing lights and loud music watching middle aged men buying cars.
ping
No, but Gayco is....
Don't know about health insurance, but those folks definitely pay more for life insurance (and should IMHO). Why should someone who exercises, eats a decent diet, non-smoker, and of average weight pay the same as someone who weighs 400 pounds, smokes 2 packs a day, and for the most part moves only far enough to grab the TV remote?
That does not make them any less worthy as a person, but actuarially, high risk.
It’s a better pic than that one of Albright people insist on posting!
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