ANGEL, Oga. 9, 2022 /PRNewswire/ — Insurance Commissioner Ricardo Lara they must reject GEICO’s offer $268 million The increase in car insurance rates is a practice and a discriminatory practice based on education, wrote Consumer Watchdog in a petition sent to the California Department of Insurance (CDI) yesterday.
The increase will be especially difficult for working people in California. Drivers working in areas such as warehousing, construction, or food service will be paid 25% higher than the “professional” drivers that GEICO favors, including lobbyists, architects and financial experts. They will pay about 11% more than engineers, accountants, and judges.
In all, the rate hikes will affect 2.1 million GEICO members $125 annual increase is required.
“Under GEICO’s discrimination waivers, investment bankers, consultants, surgeons, and lawyers will profit off the backs of low-income and blue-collar Californians,” said a Consumer Watchdog attorney. Daniel L. Sternberg.
At the same time that GEICO is proposing these cost increases, the company is closing offices in the state and laying off hundreds of employees. GEICO has also stopped selling insurance through mobile agents in the state, leaving online options via computer or mobile phone as the only way to get a GEICO policy in Californiaand many other countries.
“There should be little doubt that GEICO’s actions will hurt California drivers. The lack of internet is dangerous California to Many high risk areas are being left out when trying to get home and auto insurance. As we’ve seen with the COVID-19 vaccine, the digital divide can lead to huge disparities across racial groups in their ability to find work,” said Sternberg.
GEICO has received two rate hikes in the past California in 2017 and 2018 before the pandemic took drivers off the road and claims dropped.
The Insurance Commissioner has failed to act to prevent discrimination in employment and education.
Consumer Watchdog called on Commissioner Lara to deny GEICO’s job and training program to increase the number of Californians who work at this rate, and to enact a law requiring all insurance companies to cover Californians regardless of their job or education.
Consumer Watchdog and 10 community organizations and civil rights activists have accused auto insurers of using unfair and discriminatory practices and training to set premium rates. February 2019. In September 2019a study by the Department of Insurance confirmed this, finding a “significant disparity in financial performance” created by insurance companies. California drivers relying on nothing more than their work or training. Three years later, Commissioner Lara has yet to receive an order banning the practice, and the final draft of the potential regulations was issued by the Department of Insurance about a year and a half ago.
Consumer Watchdog has issued a complaint recently The opinion of the company Mercury Insurance Company and Interinsurance Exchange of the Automobile Club’s (“Auto Club”) is a ride-hailing service that also uses a service and education system.
“Commissioner Lara needs to support working families and enact legislation to stop tax deductions. Instead of cracking down on these discriminatory deductions, the Commissioner should use his voter-elected authority under Proposition 103 to protect middle- and low-income families from being charged higher rates because of their jobs,” said Sternberg.
Read Consumer Watchdog’s Petition for Hearing and Petition to Intervene: https://consumerwatchdog.org/sites/default/files/2022-08/2022-08-08%20GEICO%20PFH.pdf
Employment has not been legislated as a legal requirement under the proposed vote on Proposition 103. GEICO’s policy of unfair discrimination means that drivers with lower incomes and less education continue to be paid the highest wages based on their job titles.
Voter-approved Proposition 103 requires car insurance premiums to be based on three acceptable factors – driving safety record, annual mileage, and years of driving – and prohibits unfair discrimination. Proposition 103 prohibits such unfair discrimination based on income or race.
SOURCE Consumer Watchdog