Feb 6

GEICO Thinks Less Educated People Should Pay More



Is it fair to make a janitor pay $112.00 more than a lawyer to buy car insurance in Florida? GEICO and a few other insurance companies think so.

The Consumer Federation of America found that nationally a 25-year-old executive with a law degree would pay GEICO an average of $527 to insure a vehicle while a janitor who’s the same age and has the same driving record but has just a high school diploma would pay $741 for the same vehicle–a 40% increase.

A GEICO underwriting guide states GEICO will give its best rates to occupations requiring degrees whereas the highest rates will be assigned to “minimally skilled clerks, assistants, postal clerks, stock clerks … route men and long-haul drivers” as well as low-ranking members of the military.

Florida’s Insurance Commissioner Kevin McCarty said that the rating method may be a back-door way to make minorities and poor people pay more for coverage. He has scheduled a public hearing for 9:00 on February 9th to hear comments about it. “I am concerned that the use of occupational and educational rating is nothing for than a proxy for race-based premiums,” McCarty said.

GEICO is not the only insurance company that is taking education into account when setting premiums. Liberty Mutual and Allstate Insurance Company also use a person’s education to determine what to charge them for car insurance.

Let your Insurance Commissioner know your thoughts on this issue. To view the press release scheduling the upcoming public meeting, click here.

There are too many car accidents in Florida and too many people fail to carry adequate car insurance to cover the damages they may cause or sustain in a Florida car crash. However, the insurance industry makes billions of dollars in profits each year. If they would lower rates and not charge less educated people more money for car insurance, then maybe more people could purchase the needed insurance coverage.

If you have been injured in a Florida car accident, it is important that you know your rights and responsibilities. Attorney Matthew Noyes’ law firm has been representing those injured in Florida car accidents for over 52 years. To Get More Information About Your Rights After a Florida Car Accident, Click Here.

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