Car Insurance Secret: Being A Good Driver Won’t Guarantee You A Better Rate

It turns out your driving record is just one factor of several that determine your rate.

Insurance companies have told us for years that good drivers get discounts. You hear that in radio and TV commercials all the time.

Then you may be stunned by a new report claiming that some good drivers are paying higher premiums than drivers who’ve had accidents.

Driving Record Just One Factor

The Consumer Federation of America says some of the largest auto insurers “frequently charge higher premiums to safe drivers, than to those responsible for accidents.”

Why?

The report explains that accident history is just one factor that goes into your insurance premium and claims lower-income drivers often pay more.

Your credit score can also have an impact with many insurance companies in 2017.  A driver with a 600 credit score could be charged more than one with an 800 score.

Doesn’t That Stink?

Take a look at this scenario:

The Consumer Federation says a 30-year-old single woman who rents an apartment and has no degree would pay a higher premium than a married woman with a degree and who owns a house, even though the married woman had a chargeable accident on her record.

You might say: “Doesn’t that stink?”

The Consumer Federation says many insurers now use your job and education, your credit score, and even whether you own or rent,  to predict your chance of an accident. Married people with good credit, who own homes, are less “risky” in their eyes.

Sponsored Content

Latest Stories

Advertisement