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 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.
I guess he's just become part of the pop-culture unconscious, "Oh yeah, the guy selling guitars.."
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.
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).
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.
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?
Read it and weep.
http://www.badfaithinsurance.org/indexdetaillist.html
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.
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...
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.)
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.
You beat me to it by an hour, and from my OWN profile page;-)
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.
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.
Then again, I suppose it wouldn't hurt to check rates again!
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.
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.
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