Issue:  2006-03-14

GEICOs First Oops

♦ Focus On New Jersey

Many of our Senators and Assembly-men grew up during the 1960s. That turbulent era saw many young people involved in our civil rights movement. With that mindset, it is easy to understand a loud outrage to any form of discrimination.

Front page headline news recently cited GEICOs rating procedures. GEICO uses a persons education and job status to compute premium charges. White collar workers pay less. Those with little education, i.e., blue collar folks, pay more. And that hit a nerve with consumer groups and some legislators.

It is really unconscionable. I would love to know who they are marketing themselves to, stated Phyllis Salowe-Kaye of New Jersey Citizen Action, a consumer rights association. Everybody should be putting down that they are Rhodes scholars!

The Chairman of the New Jersey Finan-cial Institutions and Insurance Committee, Assemblyman Neil Cohen (D-Union County) agrees that GEICOs classifications should be prohibited. Assemblyman Cohen called GEICOs actions discriminatory, and he is now proposing a law to ban it.

True or False Advertising?

Personally, I am a little tired of seeing that green reptile proclaiming a 15 percent premium savings. Based upon these recent findings, this may not apply to most blue collar workers. Remember that these folks make up a significant percentage of our Garden States working families. And if this so-called 15 percent savings is not true, then why is GEICO being allowed to openly advertise it?

Never mind Missouri, Im from Jersey, so show me the numbers! If GEICOs advertising is false or misleading, then it should be banned.

No Defense

Some folks are defending GEICO, by saying these procedures are good for a healthy competitive marketplace. They say it is good business. But in reality there is no defense. Once we start down the road of tolerating something so obviously discriminatory, where will it lead? Where will it end? Saying something is good for business doesnt make it right.

According to research done by reporter Joe Donohue of the Star Ledger, the worst rates are assigned to clerks, long-haul drivers, route men, and unskilled and semi-skilled blue & gray collar workers. And common workers without advanced degrees such as a Bachelors, Masters and other degrees are charged more.

All this doesnt translate into pennies. Donohue computed over a $1,000 difference for two 30 year old men. Both are identical scenarios, except one is janitor and the other a lawyer. Guess who pays more?

A recent editorial cartoon proclaimed: I saved 15 percent on my car insurance by going to Princeton! And so our little green buddy gets its first real taste of the New Jersey mindset.

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