Geico's Two Americas: white-collar and blue-collar

[Rose Siding]

snip>
.....consumer groups and some lawmakers are angry about a little-known provision in the deal that brought back Geico -- now the state's No. 4 insurer.

The insurer uses a person's education and job status to figure out how much to charge. In short, blue-collar workers and those with less formal education pay more.
....
Assemblyman Neil Cohen (D-Union), chairman of the Assembly Financial Institutions and Insurance Committee, said he is drafting legislation to ban the practice. He said Sen. Nia Gill (D-Essex), chairman of the Senate Commerce Committee, will co-sponsor it.

"It is discriminatory and it has no relationship to how somebody drives," Cohen said. "None of that should be considered."
....
Using the company's Web site, The Star-Ledger found a 30-year-old single male from Newark would pay $1,686 a year if he is a lawyer with a master's degree.

But the same man living at the same address, driving the same car and having the same coverage would pay $2,880 if he reported being a janitor with only a high school degree.

http://www.nj.com/news/ledger/index.ssf?/base/news-5/114101878943320.xml&coll=1

via Think Progress

[bluestateguy]

1. Wait a minute

Maybe I should check them out. I'm months away from a PhD, and even though I don't make a lot, I do have a white collar job.

For years I had to pay more because I was a single male under 25 (despite having a perfect driving record). Maybe for once, insurance discrimination will work in my favor.

[northzax]

2. hold it, what kind of car?

I would think that anyone paying $1686 in auto insurance is probably driving a fairly nice car.

[LiberalEsto]

4. NJ car insurance is VERY high

he could be driving a wreck and it would still be high

[ripple]

3. I just signed up for Geico

As my other insurance was going to raise my rates AGAIN, even with a perfect driving record. I bought my insurance online and don't remember any questions relating to level of education. I think there might have been one asking my profession, but I'm not sure.

[tulsakatz]

6. they do a credit check when you buy insurance.......

.......so that info may be in the credit check......

[raccoon]

5. How would they rate the underemployed?

Somebody with a master's working at a job that only requires a high school education? Does the education trump the job, or vice versa?

[noonwitch]

7. They can do this, but they can't give women lower rates.

When I first started driving (in 1980), women paid lower rates than men because their accident stats were significantly lower than men's. My first insurance cost $50 a term less than my brother's. Of course, my mother made us split the difference because my brother told her that just because the insurance company could discriminate doesn't mean that she should (we were covered on our parents' policy as teens). When I asked if I could have the same curfew and dating privileges as he had based on the same argument, she would have none of it.

[LostinVA]

8. I think credit reports should NOT be used to determine car insurance

It's why I left Progressive -- a VERY blue company. I had a spot of trouble because of high dental bills (and, the work HAD to be done), and they jacked up my payments by a huge amount. I had had a policy with them for almost a decade -- not even a parking ticket in that time. The very red Geico gave me a fantastic rate, and still does. I try to buy blue, but...

And, bad credit doe snot equal bad driving. When you're 41 and have an excellent driving record, that should mean LOW insurance... which GEICO does give me (I did ask for a quote from Progressive last year -- and it was till crazily high).

[Coexist]

9. just for fun - anyone know what GEICO stands for?

:evilgrin:

[mark11727]

10. Government Employees Insurance COmpany

Thank God for Wikipedia.