Many companies charge more for car insurance the less education you have. A recent news story from Orlando’s WFTV, “Car Insurance Secret Could Cost You Hundreds,” says that your level of education and the type of job you have are very important when determining car insurance rates. If you have Dairyland auto insurance in Florida or another state, check with them to see if they charge more based on your education or job type. Not all companies do it, but if yours does, you could pay up to $1,000 a year more than someone with all other aspects the same as you.
The article’s example is of a woman who has a high school diploma as her highest education and is working a blue collar job in a cafeteria. She pays $100 per month to insure her 2001 Honda Civic even with a bare minimum policy and a clean driving record. She worries that if she drops her insurance, she will have her license suspended. The news station located someone with a similar age, driving record, sex, and location as the first driver. The second driver however, had a PHD and a very high paying white collar job. She was able to get insurance quotes as low as $50 per month.
The insurance industry says that charging more for drivers with less education and lower paying jobs is justified because they tend to be higher risk. But Florida’s insurance commissioner disagrees and has asked the state’s legislature to ban this controversial practice. Look for a cheaper car insurance company that doesn’t charge more based on your education or type of job.
