There are a lot of factors that affect the cost of your car insurance premiums, and a new study suggests education level and work status are among those factors.
A recent report suggests that GEICO, Progressive, Liberty Mutual, and Farmers, among others, will charge customers a higher price based on education level. For example, high school graduates with no college experience will receive a higher premium.
The study also finds that anyone, even with a college degree, will be charged more for “blue collar” work status.
According to the report:
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).
Not all vehicle insurance companies rip-off high school graduates who decided against college. The study found that sresponsible insurers include State Farm, Allstate, USAA, and Travelers.
If you use one of the insurance companies listed above, they will likely not tell you about educational and work status pricing. The report suggests shopping around to determine if better rates are available.
Other factors that can affect your car insurance premiums include prior tickets, DUIs, type of vehicle, year of vehicle, prior accidents, and the reason you drive your vehicle (personal/work). Age and sex of the driver can also lead to lower or higher car insurance premiums.
The study doesn’t explain why the insurance companies are charging a higher premium for non-college grads and non-white collar workers.
Do you think it’s fair to charge higher premiums to non-college degree earners and blue collar workers?