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Does Your Education Level Impact Your Car Insurance Rates?

    3 minute read

    It seems like almost every day, there’s at least one story in the news about education in America. One day it’s about underfunding of public schools, and the next it’s about overwhelming college debts. One week, experts stress the importance of a college degree in the job market … and the next week they bemoan how unprepared college graduates are for the workplace.

    Here’s another recent topic : people who are well educated often pay less for auto insurance.

    college graduates tend to pay less for auto insuranceIt’s true. A recent study conducted by the Consumer Federation of America found that some insurance companies charge anywhere from 12% to 45% less for auto coverage to customers with a college degree. In addition, drivers with graduate degrees or doctorates often pay less than their bachelor’s degree counterparts.

    Not surprisingly, there are some who are upset that better educated drivers get lower rates. The CFA’s executive director, Stephen Brobeck, claims that the higher rates for people in working class jobs place an additional strain on the finances, because jobs without a college degree tend to pay lower wages.

    So why exactly are auto insurers charging higher rates to less educated drivers? The answer is simple: because they tend to be riskier drivers. And statistics bear that out.

    Two states, Maryland and New Jersey, convened lawmakers to take a closer look at the practices of certain insurers — specifically, whether these firms were justified in differentiating premium amounts by education level. Both probes concluded that not only was this practice lawful, but also that the relationship between education and claims risk was actuarially sound. In plain English, this means that insurance companies had the numbers to back up the assertion that more-educated drivers tend to file fewer and less-costly auto insurance claims.Read More »Does Your Education Level Impact Your Car Insurance Rates?

    Coming Soon: Electronic License Plates

      3 minute read

      Over the last few decades, there have been numerous technological and electronic advancements made in passenger vehicles. Drivers tend to focus on the innovative creature comforts, like in-dash GPS, satellite radio, and hands-free mobile phone applications. But electronics also play a major part in the operation of today’s vehicles, from engines that are compatible with computer diagnostic equipment to electronic crash sensors in bumpers to technology that identifies stationary objects ahead and applies brakes faster than drivers can.

      Given these advancements, it’s a bit puzzling as to why the electronics trend has avoided one of the most common components of a vehicle: the license plate. Dull, unsophisticated license plates are still manufactured and affixed to vehicle exteriors; and they require periodic manual changes by drivers when they receive new plates. Consider this: the first license plates, whose basic design hasn’t changed much, appeared on cars in New York during the same year that the first radio transmission was successfully received.

      That may soon be changing with the introduction of the electronic license plate. And California may be the first state to issue them.

      Lawmakers in the Golden State have approved a measure which permits the rollout of electronic license plates by 2017. The technology already exists to manufacture these innovative plates, and California startup Smart Plate Mobile may be the company which begins supplying them to drivers.

      Read More »Coming Soon: Electronic License Plates

      Does It Pay to Be Loyal to Your Auto Insurance Company?

        3 minute read

        does it pay to be loyal to your insurance companyLoyalty. It’s ostensibly a virtue that should be cherished above most (or all?) other human qualities. In theory, a person who is loyal to something or someone should reap bountiful rewards for his or her dedication and steadfastness.

        But these days, there are many situations where this simply isn’t the case. You can have a checking account at a bank for years, but they might still deny you a car loan or mortgage. You could be a credit card holder with a certain company for a decade, but still see your interest rate jacked up if you miss a payment. And there are countless Americans who have been laid off from a company after working there 20 or 30 years or longer.

        In short, the respect and admiration for loyalty isn’t what it used to be. But here’s a little good news: loyalty does count for something in today’s auto insurance industry.

        Read More »Does It Pay to Be Loyal to Your Auto Insurance Company?

        Does California Offer Alternatives to Car Insurance?

          3 minute read

          You’ve heard it over and over again. For as long as you’ve lived in California, you’ve been exposed to the countless reminders and warnings about auto insurance. The fact that the law requires motorists to obtain this type of policy has been driven (no pun intended) into your head. So, to recap: you cannot drive without auto insurance coverage in California.

          Except… that’s not completely true.

          You Can Drive Without Auto Insurance in California

          pile of cashIf you want to get technical about it, there are ways that you can legally drive in the Golden State without having to purchase an auto insurance policy. In fact, California is one of several states that has a “loophole” of sorts when it comes to mandatory auto insurance.

          Why is this? Think about it: as heavily regulated as insurance companies are in California, they’re still private companies. And in most instances, you cannot force a private company to sell one of its products to a consumer. Plus, there are cases where an insurer might deem drivers too risky for auto insurance policies (for example, if they have dozens of moving violations, multiple accidents, and/or several DUIs on their record). That’s why these alternatives to car insurance were established — as sort of a “work-around” for people who cannot qualify for auto insurance in the marketplace.

          Read More »Does California Offer Alternatives to Car Insurance?