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 ...
Ever think of moving? Mass is as big as some counties in other states.
LOL. Actually, they usually are. Well, in the sense that they usually pay more because they are stupid.
What about me? How much of a discount do I receive because I am potty trained?
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
At least in the PRM you can buy wine and have it shipped to your door.
If I try to do this in PRMd (P.R. of Maryland) I'm a felon!
What crime would I be commiting IF I LIED about my education on a Geico application?
I doubt that they can verify your education claims.
Now I find out the rates are cheap and service good for professionals -- I will take it! :)
Have been with GEICO for years (exception of one year) -- love the service received including when someone ran a stop sign and plowed right into the side of my car. When Farmer's was the family insurance and my son was hit by someone who ran a red light, they told us to deal with the moron's insurance company out of Tulsa. Took forever to get it settled unlike when I was hit and GEICO went after the insurance company of the person who hit me including medical for a shoulder injury. One year with Farmers and went back to GEICO.
I can't stand the latest batch. I have a hard time understanding anything with that absymall accent.
I will admit, the ones with the cavemen are kinda funny.
But they try so hard to be "entertaining" with their commercials, that I wonder how their service would be if I ever need to file a claim. Frankly, if I ever need to file a claim, I want some actuary guy with a slide rule and a pocket protector telling me how much I'm going to get, rather than have some stupid lizard trying to do a song and dance, giving me free pie and chips.
And what the hell is/are "pie and chips"?
C'mon mate. they're made from scratch, just for you.
I have hated gekcos ever since my TDY at Anderson AFB, Guam. You wake up with the critters on you and everything else. Oh, and I'm happy with CSAA.
What's not to like about free pie and chips? It's pie...and chips...for free!
USAA has been fine to me.
I was hit by a driver that had Geico.
I have to say they paid $4500 for my car repairs, check was here before work was finished.
On a rental, I got Geico to give me more than my own insurance company would have provided. 3 weeks at that too.
No kidding. I saved a bunch of money by comparing my insurance with the rates Geico had, and stayed with my previous insurance company.
Higher education is not a measure of intelligence.
C'mon, bear. Put the bong away. Do you actually think when you go to a GEICO claims office, there's a gekko serving pie and chips? They have the requisite number of geeks with slide rules, just like any other insurer.
I've done that exact gig. Weird to wake up and see 'em staring down at you from the ceiling.
I'm waiting for Reuters to do a hitpiece on Progressive, run by the multi-millionaire socialist. Won't happen.
You speak'n of Hillary?
I think of moving all the time. I'd have to get my daughter (and grandson) to go along.
I've been with the same company for 23 years and it's hard to consider starting over. If I move to New Hampshire, I'd pay higher real estate taxes and the same Mass. Income taxes. No place else is within commuting distance.
My program may have an opening in Colorado Springs, I'd like to see if I could shoehorn my way in. (I think I could convince my daughter to move.)
I think you could find them in cow pasture.
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