As some of you may have noticed, GEICO's been taking some heat as of late for their underwriting guidelines—specifically the guidelines that permit the company to charge higher insurance rates for drivers with lower education and income levels. While GEICO maintains they have statistical evidence that drivers with lower incomes and education levels file more insurance claims, many consumers are claiming discrimination.

Consumers may have a point.

As I noted over on the InsureMe Agent Blog, I came across a New Jersey newspaper article last week which found that a 30-year old single, male lawyer would pay about $1,690 per year for auto insurance, while a 30-year old single, male janitor (with the same driving record) with a high school diploma would pay over $2,800 per year.

Now, a nationwide class action lawsuit has been filed in Minneapolis, Minn. against GEICO, alleging that the company discriminates against African Americans.

According to the Minneapolis-St. Paul Business Journal, the complaint alleges that instead of correlating with risk, factors like education, income and occupation correlate with race—citing a recent U.S. Census report that said about 31 percent of Caucasians have a bachelor's degree or higher, while only 18 percent of African Americans have the same education.

Because I've left my opinion on the Agent Blog, I won't repeat it here. But if you want to see the feedback I received from someone in the insurance industry (more or less defending GEICO's underwriting), head on over and take a look. I will say that advocates on both sides of the issue have some very valid points; it will be interesting to learn the outcome of this new lawsuit...of course we'll post any updates in the suit here at the InsureMe Insurance Blog.