You would assume when it comes to car insurance that the most important aspect in determining your insurance premium would be the number of accidents you’ve had in the past, right? WRONG! According to CNN Money, that might be the NEXT important thing after your level of education.
After studying the five major insurers in 12 cites, the Consumer Federation of America found that major insurers charged a safer driver with less education and a lower paying job higher premiums two-thirds of the time. In most cases the premiums were 25% higher, however in some cases the premium was double.
In one instance studied by the CFA, two women of the same age and with the same salary requested quotes from Allstate in Baltimore with the only evident difference being that one was married with a master’s degree, while the other was single with only a high school education. The woman with the master’s degree was quoted $1,248 compared to $3,292 for the high school graduate. Even though, the woman with only the high school education had a flawless 10-year driving record and the college graduate had recently caused an accident.
Surprisingly, other income-related factors like occupation were also weighted more heavily than driving-related factors like miles on the road.
Although I’m not sure how being more educated correlates with being a better driver, especially with all traffic tickets, getting a break on car insurance sounds good to me.
Whether you’re a college grad or not, per the advice of the Double Saving Divas, you’d want to ensure you shop around to find the best rate. Speaking of the Divas, be sure to check out Madame Noire Business and the Double Saving Divas money-saving chat on our Facebook page.