Geico Accused Of Discriminating Against ‘Working Class’ Customers
by Kathleen Pender, San Francisco Chronicle
The Consumer Federation of California filed a petition Thursday alleging that Geico Insurance Co. “illegally deceives and discriminates” against single people without a college degree working in blue-collar jobs by quoting them much higher minimum automobile coverage levels than permitted under state law.
The petition asks the California Department of Insurance to investigate whether Geico is violating Proposition 103 and the Unruh Civil Rights Act, and if it is, impose penalties. These could include fines and suspending or revoking Geico’s state license to sell auto insurance, but not restitution to customers.
The petition alleges that Geico discriminates against good drivers who are single, uninsured, do not have a four-year college degree and are not in a professional or executive occupation. It dubs these “working-class” people, and when they apply for insurance online, Geico quotes minimum coverage levels that are up to 10 times higher than required, the petition says.