Does your academic achievement influence your car insurance costs?
When your car insurance provider calculates your rates, they will take factors such as your driving history and car’s make and model into account. However, some insurers also account for seemingly unrelated factors, as well. For instance, some carriers will consider your education level when determining your insurance costs. But does having a college degree mean insurance savings for you? Here’s what you need to know.
- Higher Education Level Means Lower Auto Insurance Rates
Some auto insurance providers will look at your level of education when determining your rates because studies have shown that drivers with advanced degrees are less likely to make a claim than less educated drivers. This means that assuming all other things are equal, a driver with only a high school diploma may pay more for car insurance than a driver with a master’s degree. Interestingly, studies have shown that the discounts are actually quite significant. For instance, research shows that drivers can save anywhere from $300-$600 annually, just from having some type of post-secondary education.
- How Common is This Practice?
Many states have tried to prevent insurance companies from basing rates on education levels due to its discriminatory nature. For instance, the states of New Jersey and Rhode Island have both attempted to sue insurance companies in an attempt to stop them from using education as a factor in premium calculations. Unfortunately, these efforts and the efforts of other states throughout the country have been largely unsuccessful. Today, many car insurance companies continue to use academic achievement to determine auto insurance rates.
This is how your education level can affect your auto insurance rates. Do you have additional questions about your car coverage? If so, then contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. Our dedicated team is eager to assist you with all your coverage needs today.