Does having a degree help you save on car coverage?
If you are looking for auto insurance in Lancaster, California, it’s important to understand that your rates are dependent on a variety of personal factors. For instance, insurers will base your rates on things like your age, gender, driving record, and location. Surprisingly, some insurers also take seemingly unrelated factors into account, such as your education level. But how does academic achievement affect car insurance costs? Here’s what you need to know.
- How Your Education Level Affects Your Auto Insurance
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. 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.
It’s also important to remember that many car insurance companies offer discounts to students and alumni. For instance, many insurance companies offer college and high school students can access good student discounts. If students maintain the minimum GPA, then the company will offer them lower car insurance premiums. Additionally, many alumni groups offer car insurance discounts to graduates, as well.
- Is This Practice Common?
Many states have tried to prevent insurance companies from basing auto insurance 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 level of education to determine auto insurance rates.
This is how your education level can potentially affect the cost of your auto insurance in Lancaster, California. Do you have additional questions about your car coverage? If so, then contact the experts at John E. Peakes Insurance Agency for assistance today.