Report: Car insurance premiums are lower for college graduates

A recent report reveals that some companies consider your education level and type of employment, in addition to several other factors, to determine your car insurance premium costs.

According to the report published by the Consumer Federation of America (Consumerfed.org-PDF), companies like GEICO, Progressive, Liberty Mutual and Farmers charge you more if you have only a high school education or are a "blue collar" worker. They charge even more for high school dropouts. According to Consumer Watch Dog: "Janitors may pay more than business executives. People who rent may pay more than home owners. People who live in poor, crime-ridden parts of town will pay much more than others." But of course, other factors, such as your driving record, will determine how much you pay overall. The implication, however, is that some car insurance companies judge that college graduates and people with "white collar' jobs are more responsible and careful drivers than people with a lower level of education and people with "blue collar" jobs. According to the Consumer Federation of America (CFA) report, (PDF): GEICO often charges a factory worker with a high school degree far higher annual premiums than a plant supervisor with a college degree ? 45% more in Seattle ($870 vs. $599), 40% more in Hartford ($1299 vs. $926), 33% more in Oakland ($922 vs. $693), 23% more in Louisville ($2200 vs. $1791), 21% more in Chicago ($1013 vs. $840), and 20% more in Baltimore ($1971 vs. $1647). Happily, other companies, including State Farm, Allstate, Nationwide, USAA and Travelers do not use education or work status to calculate insurance rates. As unsettling as you may find the information, the companies would probably point to statistics to support their policy, and it is likely that car insurance companies in other countries and other parts of the world follow the same policy.

Source: http://www.digitaljournal.com/article/355417

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