March 21, 2006

More Evidence That It Really Is Hard Out Here for a Pimp

Geico has committed the unforgiveable sin of noting that some people and professions are inherently more trustworthy than others:

A leading U.S. consumer group Monday accused Geico Corp. (BRK) of using consumers' education backgrounds and occupations as criteria in setting auto insurance rates, resulting in discrimination against minorities and lower-income people. The Consumer Federation of America (CFA) charged that the No. 4 U.S. auto insurer, has adopted rating methods and underwriting guidelines in 44 states that directly tie rates to education and occupation.

Of course, suggesting that you can shop at another insurance carrier is perhaps asking too much of someone who is already discrimated against because of the education and occupation.

Posted by Charles Austin at March 21, 2006 02:46 PM