How your education could impact your car insurance.
As we all know, insurers look at many factors when determining auto insurance premiums. You know that they look at your location, occupation, credit score, age, type of vehicle you drive, and driving history. But did you know that insurers will look at your level of education?
Car insurance companies will take a look at your level of education when deciding your auto insurance premium. Studies have found that drivers with advanced degrees are less likely to make a claim than drivers without advanced degrees. For example, all other factors being equal, a driver with a twelfth-grade education may pay higher auto insurance premiums than a driver with a bachelor’s degree, master’s degree or Ph.D.
However, the difference in premium can vary. Most studies show drivers can save anywhere from $300 to $600 per year just by having some type of post-secondary education. Savings vary based on your amount of education. Typically, a high school dropout will pay about $300 per year more for car insurance than someone with a twelfth-grade education. Generally, as you get more degrees, the savings start to decline. For example, someone with a Ph. D may only pay $50 less for car insurance than someone with a master’s degree.
It’s worth keeping mind that many car insurance companies offer good student discounts to high school and college students under 25. Generally, you must maintain a B+ average across all classes to receive anywhere from a 5 to 15 percent discount on car insurance. This is because researchers have found that good students tend to be good drivers.
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