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| HILLARY IN [a size] 08!!" |
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 ...
So the mouse says to the elephant, "Yeah, so what if I can't reach the bottom, I can sure bang the Hell outta the sides!"
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| HILLARY IN [a size] 08!!" |
I'm also a plumber, living on the coast in North Carolina. I had the opposite experience with GEICO. I saved $285 by switching from GEICO to State Farm.>>>>>>>>>>
I have State Farm and everytime I compare rates with GEICO or anybody else I wind up staying where I am. I would pay a severe penalty if I switched to GEICO.
Maybe I started a new FR icon?
Yes, they do this. GEICO (others perhaps) use you credit score as well, which has nothing to do with driving habits. I know, GEICO sent me a letter.
A high credit score is generally taken to indicate a serious minded person who accepts responsibility and is therefore used in screening job applicants etc. A low score could indicate the opposite or merely an extreme run of bad luck but is generally viewed as not indicative of a stable and reliable temperament.
(From a ME.)>>>>>>>>>
Mythical Engineer?
Actually, the reason I was a little fuzzy was that my car died shortly after switching. Maybe my car couldn't stand the thought of me inadverdantly funding MoveOn.com.
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