Did a consumer group go too far in decrying the rating policies of the nation's fourth largest auto insurer?
Last month, the Consumer Federation of America accused Geico of adopting unfair rating practices by basing auto insurance eligibility and premiums on educational background and occupations of consumers. The group claimed that because of this, low-income consumers and minorities were being discriminated against by being forced to pay higher rates.
As an example, the group said that a factory worker without a four-year college degree in New Orleans would pay almost 91 percent more for coverage than an attorney with a professional degree but the same qualifications and driving record. Nationally, CFA says the average price difference is over 40 percent.
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