Tag Archives: California Department of Insurance

California Consumer Group Seeks Enforcement Action Against Geico

by Staff, The Insurance Journal

“Our extensive analysis of Geico’s online rate quote system found that it is programmed to target unmarried low or moderate-income drivers for inflated rates,” Richard Holober, executive director of the group stated. “Targeted motorists either pay for excessive coverages they are falsely told are the lowest available, or Geico drives them away with these costly quotes. Either way, Geico is breaking California’s insurance regulations and civil rights law.” Read More ›

ConsumerWatch: Geico Accused Of Discriminatory Insurance Quotes

kpix TV report https://sanfrancisco.cbslocal.com/video/11132326-consumerwatch-geico-accused-of-discriminatory-insurance-quotes/

When was the last time your car insurance company asked about your job or if you had a college degree? On the Consumer Watch, Julie Watts says some are questioning the legality of Geico’s practices.

Geico Accused Of Discriminating Against ‘Working Class’ Customers

by Kathleen Pender, San Francisco Chronicle

Under Proposition 103, insurance companies must offer good drivers a policy with minimum coverages of $15,000 for a single injury, $30,000 for injury to more than one person in an accident, and $5,000 for property damage, called a “15/30/5 policy.” When a “working-class” person applies online, Geico’s website shows the lowest limits are $100,000 for a single injury, $300,000 for injury to more than one person and $50,000 for property damage, the [Consumer Federation of California] said. Read More ›

GEICO Discriminates Against Unmarried Low-Income Drivers, Consumer Federation Charges

[CFC press release:] GEICO Insurance Co. illegally deceives and discriminates against unmarried, lower or moderate-income motorists by quoting them much higher minimum automobile coverage levels than permitted under state law, the Consumer Federation of California (CFC) alleges in a petition filed today with the California Department of Insurance. Having uncovered this scheme, CFC is calling on the Department of Insurance to enforce state insurance and civil rights laws by ordering GEICO to halt these practices and impose penalties. The targets of GEICO’s deceptive rate quotes are good drivers who have all of these characteristics: are unmarried, not employed in a professional or executive occupation, have not completed college, and are not currently insured. Read More ›

GEICO Rips Off Single, Lower-Income Drivers, CFC Alleges

Read CFC’s enforcement complaint here. If you’re an unmarried, uninsured good driver and have anything less than a bachelor’s degree or a professional job, GEICO quotes you coverages it claims are its “Lowest Limits” that are in fact as much as 1000% more than the minimum it … Read More ›

Uber, Lyft setback: Insurance chief backs proposal to hike coverage requirements

by Patrick Hoge, San Francisco Business Times

An insurance gap was highlighted last New Year’s Eve when a driver seeking passengers in San Francisco with the UberXd smartphone application open struck and killed a little girl. Uber argues it isn’t liable because the driver didn’t have a ride order at the time. The girl’s parents sued; their attorney said the driver’s insurance only allowed for maximum payouts of $15,000 per person and a maximum of $30,000, the California minimum. Read More ›

We Saved Consumers $125 Million On Insurance So Far In 2014

by Richard Holober, Executive Director, Consumer Federation of California

10/1/2014 Update: 2014 consumer savings rose to $148.3 million by year’s end. To recap: 1 million AIG policyholders saved $7.7 million on homeowners insurance. Infinity Insurance policyholders saved $15.5 million on auto insurance. 1.2 million Farmers policyholders saved $34 million on homeowners insurance (details below). 1.6 million … Read More ›

Consumer Federation saves California homeowners $34 million

Using California’s longstanding consumer protection laws, known as Proposition 103, CFC worked with Farmers and the California Department of Insurance to cut the increase nearly by half, resulting in an overall savings of about $34 million. Read More ›

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