A Progressive spokesman told the Insurance Journal the insurer “uses multiple rating factors, which sometimes include non-driving factors that have been proven to be predictive of a person’s likelihood of being involved in a crash.” A spokesman for GEICO could not be immediately reached.
To conduct its study of online insurance rates, CFA sought quotes for a hypothetical factory worker with a high school diploma and a plant supervisor with a college degree.
“Since most Americans need a car and almost all states require the purchase of auto insurance, many lower-income workers are faced with the choice of paying these high, and often unaffordable prices, or breaking the law by driving without insurance,” CFA Executive Director Stephen Brobeck said.
The association said many drivers in low-income urban areas often go without insurance because of the high cost. The group also said that while many states prohibit the use of education and occupation to deny coverage, they permit the use of these factors in setting rate levels. The high rates deny low- and moderate-income consumers coverage, the group said. The group urged state insurance commissioners to curb the practice of using education level to determine rates.