Does my education level impact the rates I pay for car insurance?

UPDATED: May 5, 2014

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UPDATED: May 5, 2014Fact Checked

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Asked May 5, 2014

1 Answer

Whether you are a new driver still attending high school or an adult attending university courses, your educational performance can have a large impact on your auto insurance rates. Once you graduate, the degree you receive will have an impact on your insurance rates for the rest of your life.

Students who maintain a 3.0 grade average are eligible for auto insurance discounts. This discount applies to high school grades as well as college grades. To qualify, you will need to present the insurance company with proof of your grade standing, such as legal school records, report cards or SAT scores, among other things. Contact your insurance company to find out what they require as proof of scholarly achievement.

Once you graduate college, your degree can be a source of an auto insurance discount from then on. As long as you graduate with a Bachelor's degree or higher, you are entitled to a discount on car insurance. This is because insurance companies regard the wherewithal to stick with higher education until you get a good diploma as a sign of personal responsibility that will be carried over to your driving habits. It is not that higher education makes you a better driver simply that sticking with the program is interpreted as a sign that you are more dependable than someone who never attends college at all.

Finally, insurance companies are required by law to provide discounts for people who take and pass a voluntary driver improvement course. As with your school grades, you will need to show proof of completion to the insurance company, but the law stipulates that insurance companies must provide a discount for 3 to 5 years based on completion of such courses. The course cannot be ordered by a court of law or the DMV, but must be entirely voluntary.

Answered May 5, 2014 by Anonymous

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