Consumer Federation of California

Mike Konopacki / CFC

The Consumer Federation of California is alleging that Geico Insurance Co. illegally quotes higher minimum automobile coverage levels than permitted under state law to unmarried, lower or moderate-income motorists.

The allegations were made in a petition filed Thursday with the California Department of Insurance. It cites violations of California’s Automobile Insurance Reform Act (Proposition 103), the California Unfair Insurance Practices Act and the Unruh Civil Rights Act.

The consumer group is calling on CDI to enforce state insurance laws by ordering Geico to halt these practices and impose penalties, which the group said may include fines and revocation of the company’s license to sell auto insurance.

Spokespersons for Geico did not respond to several requests for comment.

According to the group, the targets of Geico’s “deceptive rate quotes” are good drivers who have all the following characteristics: unmarried; not employed in a professional or executive occupation; have not completed college; and are not currently insured.

These consumers who obtain an online Geico quote are told the “Lowest Limits” coverages the company offers are at levels that are 500 percent to 1000 percent higher than the minimums required under law for good drivers, according to the group.

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Tags: California Department of Insurance, CFC, Deceptive, GEICO, Insurance, Intervenor, Prop 103