Some auto insurers give higher quotes to people with lower-paying jobs and less education.
It’s no secret that switching auto insurers can save you money—if you know what you’re doing. Your education and employment are key factors that determine your rates for some insurers.
So, if you have a well-paying job and a high level of education, those insurers are clearly better for you. But if you work a blue-collar job and are less educated, you need to choose your insurers more wisely to avoid higher rates.
Many large auto insurers ask about your education level and job title when you sign up. They may seem like harmless questions, especially since many of these companies disguise these questions as opportunities to get discounts.
What they don’t tell you is that you’ll be penalized for having a lower-paying job or less education than other consumers.
What information do car insurance companies use to determine your rates?
It’s common sense that auto insurers use your driving behavior to determine your rates. Past accidents, speeding tickets, the car you own, and the mileage on it all come into play. But insurance adjusters also use biographical information to determine rates, like age and gender. They also consider other factors, like whether your own a home and your credit history.
In fact, socioeconomic factors sometimes outweigh driving history when it comes to your car insurance premiums.