Got college? Get cheaper car insurance, investigation findsReprints
Cue “Pomp and Circumstance.” Having a college degree, or any advanced degree, can help lower your car insurance rate more than a clean driving record, an investigation by WFTV news station in Orlando, Florida, revealed.
The report, which aired Tuesday, found “hidden factors” that affect car insurance rates, with bad credit and a lack of a college education topping the list.
"It's been the best-kept secret in the insurance industry, for sure," Jeff Blyskal, editor of Consumer Reports, told a reporter. "This can work against consumers, and they don't even know it."
For the experiment, the reporter plugged in the same vehicle, address and clean driving record into several insurance applications for one Florida driver who volunteered, altering only the credit scores and the education level. In one instance, the insurance premium was $250 less with “exceptional” credit and a master’s degree.
Two other driver-volunteers participated, finding they, too, would have their premiums reduced by $300 with further education and a better credit score.
"I would feel that's not fair,” said one driver with a good driving record.