Should Your Job and Education Decide Your Auto Insurance Premiums?

Question:

I think this is a form of discrimination, just because someone has a BA doesnt mean that he is a better driver or should get a break on their premiums. I have been driving for over 25 years and have had only 1 minor accident and 1 speeding ticket. I dont even have a certificate of any kind, but I think I have a pretty good driving record, but yet I have to pay a bundle in insurance. I believe that your insurance should be based on your driving record, not on your education. What do you think?

Answer:
Well- it isn't that the premium (base rate) is lower for those who have a bachelor's degree. It's that they give a DISCOUNT for certain degrees. This means that the insurance company filed w/ the state dept. for the credit they give for certain degrees. Usually this is based on statistics. If the facts show that those who have a degree in Science or Engineering have less accidents- then so be it. Good for them (I don't have a degree either). I am happy that they can get a better rate for that.
If you are in CA and have more than 1pt on your record in the past 3 years, then you no longer qualify for the "good driver discount" (Per CA prop103). This is usally about 30%. As soon as one pt. falls off- you should get that credit back. FYI.
Good luck to you.

I think you need a new insurance company, the company I'm insured with does not base premiums based on education level.

In fact, I've never heard of that before.

i have found most ppl with a degree are stupider when it comes to stuff like that. shoot, ppl in my office can't even use their phone, copy machine or fax machine!

for insurance companies to discriminate on the basis of education is not cool. i know in CA it is based on your DMV record, they don't know anything about your education history. i have never heard of that.

I agree. What kind of insurance are you using though? Most insurances base it on a number of factors including: driving record, age, type of vehicle, statistics of accidents on the vehicle or its type, and give some breaks for certain other areas like "good student" or whatnot. I'd shop around a bit, if you feel like you're getting railed on your premiums today and have been a good driver for many years.

Jobs and education can matter when trying to predict auto insurance premiums. Educational levels, accidents, violations, sex, where you live are all nothing more than ways for the insurance company to predict your tendancy to have more than the average number of accidents. Insurance is the only business in the world where the price is developed before the company knows what it will cost so they must predict. Some things are more predicitive than others. As an example, kids in high school who get good grades tend to have better driveing records than other kids. Does not mean they are better or worse people, just that it has proven to be a predictor. But it is only a predictor, so in any group, the prediction is true or not true for any particular person but as a group, it is true. Cool eh? I've been doing my homework. It is discriminatory, so is saying you have to be 16 to get a driver's license. some adults should not have a license some 14 year olds are more mature than some adults. But, as a group, kids have more accidents than adults so they get charged more. That is discrimination. OK so I've board you, but hey, you asked!

Should Your Job and Education Decide Your Auto Insurance Premiums?

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