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Group: Geico Insurance Rates 'Very Unfair'
reuters ^ | 3/20/06

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 ...


TOPICS: Culture/Society; News/Current Events; US: Virginia
KEYWORDS: berkshirehathaway; geico; redlining
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To: Arrowhead1952

I gave them a call, at Geico too they wanted to increase my rates over progressive by 80%..some savings...lol I guess when every 5th commercial on the TV is a Geico commercial you really have to expect their rates are through the roof.


121 posted on 03/20/2006 7:26:09 PM PST by JABBERBONK
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To: Sarajevo

122 posted on 03/20/2006 7:27:25 PM PST by GarySpFc (de oppresso liber)
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To: freedumb2003
Neither did I :-)

I guess he's just become part of the pop-culture unconscious, "Oh yeah, the guy selling guitars.."

123 posted on 03/20/2006 7:27:54 PM PST by pierrem15
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To: SnuffaBolshevik
...Barbara Mikulski playing a tuba dressed in a thong...

OK, smart aleck, YOU explain to my wife why I will wake up screaming in the middle of the night with that image in my head!

Seriously, I have had USAA for over 20 years and love them. They helped us when Allstate tried to screw us after one of their insureds put Mrs. Reb's car into a Jersey wall on the Beltway. USAA may or may not be the cheapest, but they stand by their members.

124 posted on 03/20/2006 7:28:35 PM PST by RebelBanker (If you can't do something smart, do something right.)
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To: mathprof

Satisfied Geico customer here who likes the low rates a lot (and who still can't understand why the Gekko sounds like Michael Caine's character in the movie Alfie).


125 posted on 03/20/2006 7:31:23 PM PST by Moonmad27
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To: Dustbunny


GEICO zings policyholders on claims.

Since the late 50s GEICO has been a scam outfit.

Slight premium savings don't matter when you get boneyard fenders or clips from vehicles that were supposed to be crushed.

Get hit by a GEICO policyholder and you might as well get hit by an illegal alien with no insurance.

I recall taking both GEICO and the driver who hit me to court - and winning.

Lousy way to get your vehicles properly repaired - and you never can get the time and aggravation back.

"Progressive" is run by a radical liberal supporter of Kerry and the DNC - Buy from Progressive and you fund the moonbats who are in your pocket.

Avoid those insurance companies that flood the TV airways - and those who obviously use minorities as TV spokemen.

This applies to pharmaceutical companies as well - One such company used illegal aliens as 95% of their TV "actors" to PR free drug giveaways - that corporation is in hot water financially and legally right now.

Talk to farmers and ranchers - if you have a bit of acreage - you may find a reliable honest good deal.

As a child I was in the insurance business.

Shop, ask, talk to friends and relatives, people at church.

Be a serious person with the lives of your family and friends.








126 posted on 03/20/2006 7:34:52 PM PST by devolve ( host-images-fast-free=Photobucket & tinypic.com)
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To: mathprof; Indy Pendance; birbear; Liberator; rocksblues

Hahaha! The "Government Employee's Insurance COmpany" discriminates the poor and under-educated! If true, I suppose I should find it sad or angering; it's just the extremity of the hypocrisy is just TOO funny!

Btw, I used to be insured by GEICO. I switched to All-State. They did manage to beat GEICO's prices, but I was more offended that GEICO did not care to investigate (or accept my assertions on face value :^D ) when I was the victim of someone ELSE'S bad driving, but that person was just a little more savvy in manipulating the police report.

She had become impatient I guess with my slow driving just after I pulled away from the sidewalk, and tried to pass me on the left on a narrow, residential street. She ran out of room between me and a car parked on the opposite side, and ended up scrunching into my driver's side doors. She had alleged I had hit her while pulling away from the curb. No knowing that, when the police asked me if I just pulled away from the curb before being struck, I had answered "yes." But I had photographic proof showing her broken headlights sprayed on the left side of the street, and how far away that was from the only open curbside room for parking.

Incidentally I like the little gecko. And even the prissy, bitchy cave man using an Apple ("I just lost my appetite.") What I hate are the "I've got good news" commercials. I mean, it's a little talking gecko. How can you not like a little talking gecko?


127 posted on 03/20/2006 7:41:46 PM PST by dangus
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To: birbear; All

Read it and weep.

http://www.badfaithinsurance.org/indexdetaillist.html


128 posted on 03/20/2006 7:43:35 PM PST by proudpapa (of three.)
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To: isthisnickcool

My basic rule of thumb: Trust any organization which does well with very small amounts of funds; they have to be conservative, since liberal groups get loads and loads and loads of money. They wouldn't bother working for a non-profit that didn't have billions.


129 posted on 03/20/2006 7:45:23 PM PST by dangus
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To: dangus

Oops... I didn't switch to All-State. THey were my first insurer. I left them for GEICO. Now I've got Progressive, I think...


130 posted on 03/20/2006 7:48:17 PM PST by dangus
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To: Graybeard58
Stupid people should be charged more for everything.

We are I mean they are.

Did you remember to deposit 5¢ before hitting the POST button?

(For those of you in Rio Linda, that was a joke.)

131 posted on 03/20/2006 7:48:24 PM PST by Redcloak (<--- Not always a people person.)
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To: proudpapa
We're number 1... we're number 1!

ick.
132 posted on 03/20/2006 7:56:10 PM PST by birbear (You know what? This is crap. We're going to stop this.)
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To: mathprof

my car was insured with geico in fl for many years, and the minute i compared rates in 2004 I found they were more than 200% higher than allstate, 100% more than several others.

Others in FL have said they find geico far more expensive than major competitors.


133 posted on 03/20/2006 8:47:10 PM PST by WoofDog123
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To: GarySpFc

You beat me to it by an hour, and from my OWN profile page;-)


134 posted on 03/20/2006 8:58:04 PM PST by Sarajevo
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To: headstamp

Me too. I saved a bundle and so I increased my coverage in both comprehensive and liablilty and lowered my deductibles and STILL saved about 30% overall.

I played with the quotes and compared for a couple hours. I went to State Farm, Progressive and Allstate and either couldn't get instant quotes to compare or didn't save near as much.

So far so good.


135 posted on 03/20/2006 9:02:34 PM PST by Fledermaus (I have regretfully come to the conclusion the Bush presidency and GOP governance are failures.)
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To: proudpapa

Heh. Each person is different. I shopped. Geico was the cheapest. They paid my one claim and didn't raise my rate. They have top-notch, smart and efficient customer service people. And I love the lizard to boot! Your milage may vary.


136 posted on 03/20/2006 9:05:41 PM PST by bluefish (Holding out for worthy tagline...)
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To: WoofDog123

Then again, I suppose it wouldn't hurt to check rates again!


137 posted on 03/20/2006 9:07:13 PM PST by bluefish (Holding out for worthy tagline...)
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To: Sarajevo
You beat me to it by an hour, and from my OWN profile page;-)

I could not resist targeting the enemy. Now lay down a field of fire.

138 posted on 03/20/2006 9:16:22 PM PST by GarySpFc (de oppresso liber)
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To: birbear
I think their caveman commercials are great. That was a very clever idea and they could probably go on for years with material for caveman commercials and most of it would be funny (which means people would remember the commercials and the product they are trying to sell). I imagine that the caveman commercials aren't too expensive to make as far as commercials go. No animation or stunts -- just regular settings with two guys wearing caveman makeup.

I know insurance companies use credit ratings to help determing someone's insurance rate. The theory if you are high-risk about money then you may be high-risk about safety. It does not shock me that they would consider education or income. The leftists always want responsible people to pay for the mistakes of the irresponsible.

139 posted on 03/20/2006 9:18:26 PM PST by Wilhelm Tell (True or False? This is not a tag line.)
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To: afnamvet

I have hated gekcos ever since my TDY at Anderson AFB, Guam.

Yeh, but they went down good with a beer over at Andy's hut, But those were my submariner days ;OP.

140 posted on 03/20/2006 9:18:50 PM PST by ancient_geezer (Don't reform it, Replace it.)
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