There is a vast quantity of factors that play a role in determining the price of a car insurance plan. Auto insurance companies rely on a number of factors to determine how big of a risk a driver is. Car insurance companies make money by charging more for their policies than they expect to lose, so determining the risk of each driver is important. If a car insurance provider has reason to assume that you’ll potentially cost them a lot of money, they’re going to charge you more. Conversely, if they decide that you’re unlikely to be involved in costly accidents, you’ll probably receive a pretty low rate for your auto insurance.
Some of the factors that car insurance companies use, such as your driving record, and the cost of your car, are fairly obvious. Others, however, are a bit less predictable. One such factor is your level of education, specifically with regards to whether or not you have a high school diploma. If you have a high school diploma and want to purchase cheap car insurance, we’ve got you covered with all the information you need.
In this article, Part 1 explains how having a high school diploma can affect your car insurance rates, while Part 2 offers advice on how to find cheap car insurance plans if you have graduated from high school.
Part 1 of 2: How a high school diploma can impact your insurance
Some studies have suggested that drivers who have received a high school diploma are safer behind the wheel, and less likely to be involved in a serious accident. As a result, many car insurance providers take education level into account when determining your quote, and give more affordable rates to those who have graduated from high school.
Part 2 of 2: Finding cheap car insurance if you have a high school diploma
If you have a high school diploma, you’ll want to take advantage of it when purchasing a car insurance plan. Any aspect of your life that can lower your auto insurance premiums should be utilized.
Only about half of auto insurance companies use education as a factor when calculating car insurance premiums. In order to find the cheapest auto insurance package, you’ll need to find a car insurance provider that takes education level into consideration.
To do so, contact the auto companies that you would consider purchasing a plan from. Ask them whether or not they take education level into consideration. The companies that do will likely be able to offer you a cheaper car insurance package, so you should focus on getting quotes from these providers. If you have a higher education degree, you can also ask if it will have an impact on your car insurance prices.
The act of using education levels as a determining factor for car insurance rates is not without controversy. Many people think this is an unfair way of charging young or uneducated people more money for their premiums, when these demographics are already at a financial disadvantage. Others believe that the education correlation only exists because it’s highly populated with teenage drivers, and age is already a consideration for every car insurance provider.
Because of this, some states have attempted to ban the practice of using education level to help determine car insurance rates. So far, those efforts have not been successful, but it continues to be something that is talked about and fought for. The controversy is part of the reason why so many auto insurance providers don’t use education level as one of their metrics in calculating rates.
That said, you should take advantage of any opportunity to get cheap car insurance. If you have a high school diploma, find a car insurance company that accounts for education level, and capitalize on the cheapest car insurance that you can find.