TheNewspaper.com: Driving Politics
Home >Miscellaneous Issues > Miscellaneous > New Jersey: Higher Insurance Rates for Blue Collar Workers 
Print It Email It Tweet It

2/28/2006
New Jersey: Higher Insurance Rates for Blue Collar Workers
Geico charges janitors 70 percent more than it charges lawyers for car insurance in New Jersey.

Geico logo
Geico insurance charges more to insure the automobiles of customers who have a lower occupational status or educational background. In a February 2004 document entitled "Geico Auto Group Guide to Company Placement," the insurer explains how "unskilled and semi-skilled blue- and gray-collar workers" are more of a risk and should be charged higher rates accordingly.

"Risks who have achieved at least a high school diploma or its equivalent are more favorable than those without a high school education," the document explains. "Bachelors, masters and other advanced degrees are considered most favorable."

The New Jersey Star-Ledger compared the rates of a 30-year-old single male from Newark and found if he were a lawyer with a master's degree he'd pay $1686 a year. If he were a high school educated janitor, he would pay $2880 -- 70 percent more.

New Jersey law allows insurance companies to determine rates by factors with a proven relationship to losses. The law prohibits charging based on certain factors such as race and ethnicity.

Geico is the number four insurer in New Jersey with 475,000 customers.

Source: Geico's two rates: white-collar and blue-collar (New Jersey Star-Ledger, 2/27/2006)



Permanent Link for this item
Return to Front Page


Related News
Trump Administration Will Shut Down Highway Greenhouse Gas Rule

California Supremes: Church Not Responsible For Jaywalking Parishoners

Federal Rules Add $2100 To Cost Of New Cars

Report: Billions In Subsidies Fail To Save Transit

Wisconsin: Federal Judges Uphold Ban On Freeway Political Signs




View Main Topics:

Get Email Updates
Subscribe with Google
Subscribe via RSS or E-Mail

Back To Front Page


Front Page | Get Updates | Site Map | News Archive | Search | RSS Feed
TheNewspaper.com: Driving politics
TheNewspaper.com