New Study Shows Cheapest Car Insurance Goes to Consumers With Higher Levels of Education
Los Angeles, CA (PRWEB) July 25, 2013 -- A study published by the Consumer Federation of America (CFA) has revealed that consumers with lower levels of education pay more for their auto insurance.
The CFA discovered that major insurance companies charge high school graduates and blue-collar workers higher rates for car insurance when compared to college-educated counterparts. The national consumer survey revealed that education and occupation are factors used to set auto insurance rates, despite a large majority rejecting the use of this data for this purpose.
The CFA surveyed a selection of vehicle insurance quotes in a ten highly populated urban areas including Atlanta, GA, Houston, TX, Phoenix, AZ and Seattle, WA. The study took place from May to June 2013 and considered the various rates of ten difference insurance companies. The CFA received online quotes from the insurers’ websites for a 30 year old female driver with 10 years of driving history with no accidents or no moving violations an insurance that has lapsed for 15 days. In the instances where the hypothetical applicant was college educated, she received a quote that was 45 percent lower than when the hypothetical applicant had only a high school diploma.
Specifically, the CFA found that Geico and Progressive, two major insurance carriers, take education and occupation into significant weighting when determining rates for vehicle insurance. Of the two, Progressive gives “somewhat greater weight to education than to occupation.” In addition, Liberty, American Family and Farmers are also highlighted as being insurers that also take education levels into consideration when providing an auto insurance quote to a consumer.
Car insurance quote referral site AutoInsurance-Quote.net commented on the study in the following statement that was released to the press.
“The CFA study has exposed some car insurance companies for unfairly overcharging consumers with lower incomes. Very distressingly, the survey also revealed that consumers living in poorer urban communities in Hartford, CA, Baltimore, MD and Chicago are being charged more than $2,500 for minimum coverage. AutoInsurance-Quote.net is committed to helping consumers to source fairly calculated lower income options within their ZIP code and state for the best car insurance rates. We feature insurance companies that use egalitarian criteria only.”
Visit: http://www.AutoInsurance-Quote.net
Sam Malka, AutoInsurance-Quote.net, http://www.autoinsurance-quote.net/, (786) 319-9951, [email protected]
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