Whereas the Geico Gecko is busy charming us in its commercials, the corporate is alleged to have discriminated in opposition to low-income drivers in California.

Geico is accused of not providing insurance policies that present the minimal protection required by legislation for these drivers, who even have the bottom premiums, in response to the California Client Federation.

Actually, insurance coverage firms are required by state legislation to supply good drivers this selection.

Geico is definitely owned by Berkshire Hathaway (BRKA)which is run by Warren Buffett, a billionaire who typically stands up for the little man.

An concept generally known as the “Buffett Rule” is that billionaires like him ought to by no means pay a smaller share of their revenue in taxes than a middle-class household. Buffett has additionally advocated for the next revenue tax credit score, which might assist low-income working households.

Associated: The wealthy are eight instances extra more likely to graduate from faculty than the poor

Insurance coverage firms should supply good driver plans with the minimal stage of protection allowed by the state. In California, the coverage with the bottom protection covers as much as $15,000 for a single damage in an accident, $30,000 for accidents to a couple of particular person, and $5,000 for property injury.

However the California Client Federation discovered that this coverage was not supplied to some California drivers who requested quotes on-line. It prices that drivers who’re single, should not have a university diploma, are usually not at present insured, are unemployed or should not have knowledgeable job.

The group claims that it’s providing these people a plan with greater limits and better premiums.

It additionally claims that Geico nonetheless labels this selection as a “lowest restrict” protection plan.

A majority of individuals already select insurance policy that provide greater than the minimal protection, says Michael Barry of the Insurance coverage Info Institute.

The California Client Federation filed a criticism with the California Division of Insurance coverage on Thursday. Geico couldn’t be reached for remark.

CNNMoney (New York) First printed February 13, 2015: 3:32 PM ET