GEICO Settles For $6 Million Over Allegedly Discriminatory Quotes

generic insurance policy generic shutterstock_55614910 Gunnar Pippel
Gunnar Pippel

GEICO has agreed to pay $6 million for giving misleading and discriminatory quotes to consumers as part of a settlement with the California Department of Insurance

The Consumer Federation of California filed a petition against the insurance giant alleging it violated civil rights and insurance laws by targeting unmarried, low- and moderate-income motorists with higher lowest-limit quotes.

According to the CDI, GEICO's website misrepresented bodily injury liability limits of $100,000/$300,000 as being as the lowest-limits quote to some customers when in fact they were not. California law requires insurers to offer a minimum limits policy of $15,000/$30,000.

The federation also alleges GEICO only gave these incorrect quotes to certain customers based on education, occupation and gender.

“Consumers are entitled to a fair estimate that does not misrepresent material information, and discloses fully what they are getting for their money,” said Insurance Commissioner Dave Jones. “Insurers must adhere to the letter of law when developing quotes, whether in person or through an online system.”

The settlement also requires that GEICO stop discriminatory quoting, offer a quote for a $15,000/$30,000 policy to certain consumers for the next three years, and submit audits of their website every six months for the next three years. If GEICO fails to comply with the agreement, they will have to pay an additional $6 million. 

NBC7 reached out to GEICO for comment, but calls were not immediately returned.
 

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