Does Your Degree Affect Your Auto Insurance Premiums?


There are many factors that affect how much a driver will end up paying for their auto insurance. Some of them are obvious, like the driver’s driving record. But there are also some things that most people wouldn’t necessarily assume would affect the price of their auto insurance.

An example is the level of education.

Specifically, people with a bachelor’s degree generally end up paying less for their auto insurance than drivers with only a high school diploma. And the cost difference may surprise you.

What is the impact of a degree on auto insurance costs?

According to data from The Ascent, the national average auto insurance premium for drivers with a bachelor’s degree is $ 2,168 per year. That’s $ 478 cheaper than the overall national average for all drivers, which is $ 2,646.

This gap may seem large, but it is paltry compared to the specific cost difference that a driver with a four-year degree will pay versus someone with only a high school diploma. The national average auto insurance premium for a motorist with a high school diploma is $ 5,988. That’s $ 3,820 more than what someone with a bachelor’s degree would pay, more than double the cost.

There are a lot of potential explanations for this. One reason is that many teens and young drivers don’t yet have a bachelor’s degree but still need car insurance.

Insurers have also determined that people with only high school diplomas tend to have a higher overall collision risk, and the price of insurance is based on the likelihood of an accident occurring.

What can drivers do to reduce costs?

It may seem unfair to those without a degree that they are forced to pay higher auto insurance rates, but unfortunately there is little that an individual driver can do to change the settings that insurers take. taken into account when setting prices.

However, every driver can take steps to keep their premiums as low as possible, regardless of their level of education. These include things like:

It doesn’t make sense for a motorist to try and get a college degree just to lower their auto insurance premiums. But for those who have not had a higher education, it is even more important to take these other steps to try to find an insurer who does not place as much importance on education in the risk assessment.

By taking the time to find the right insurance provider, drivers with less than high school education can still find affordable auto insurance rates to protect their personal finances when they’re on the road.

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