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Occupations used for Discriminatory Auto Premiums

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The Consumer Federation of America (CFA) has accused Geico, the fourth largest auto insurer, of charging higher premiums to customers based on their occupations and educational backgrounds. The discriminatory practices complaint is based on internal memoranda which reveal that Geico uses such information to determine the likelihood of accidents and claims. Geico denies the allegations, but CFA tests of premium discrepancies showed that lower income policy holders pay 11% higher premiums in Chicago and up to 124% in New Orleans for the same coverage as persons with greater income and more educational degrees.