Not Having A College Degree Can Impact Your Car Insurance Rates
Many drivers today are struggling to come up with enough money each month to pay for their car insurance premiums. Now, people who have not earned a college degree might have to pay even more for their insurance coverage.
Many car insurance companies assign drivers very different premium rates based on their occupation and education level. For example, one driver in Miami had to pay $1,700 for insurance coverage while a similar driver with a driving record and no college education had to pay more than $3,400 for insurance coverage.
A survey found that using the same information for drivers but differing educations and educations during the insurance quote process creates huge disparities. In today’s economy, many drivers, especially those that are under the age of 25 are questioning whether or not they should go to college. The cost of college tuition keeps going up and many recent graduates cannot afford to pay their student loans because of the job market.
Education and occupation are allowed to be asked of drivers during the car insurance quote process. Some people in the car insurance industry have stated that the amount of education that a driver has can play a part in how well they can drive. The more responsible a person can show that they are; the lower their premiums will be.
Auto insurance companies can use various types of information to determine the risk that a driver has on them to insure. For example, if a person has no college education then they might have a lower credit score than someone who has a doctorate degree.
A driver’s credit history is used in most states to help determine the risk that they have. The lower a person’s credit score, the less responsible they appear to be to insurance companies. Right now, insurance companies are fighting to try and get more of a market share of consumers. This means that drivers who have clean driving records and have a college degree can capitalize on lower insurance rates.
Insurers want to reduce their risk by offering incentives to target groups such as those with college diplomas and professional careers. It is a good idea for drivers to consider getting college diplomas because it will help them save money on their car insurance premiums for many years to come. On average, people can save from $20 to more than a few thousand dollars each year just by going to school.