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(Transportation-News.com, June 05, 2013 ) Johannesburg, South Africa -- While it may sound discriminatory and even be controversial, insurance companies, especially automotive insurers, take into account the education level of a policyholder, which could result in a higher premium for a high school dropout or even with simply a high school diploma than someone who had a higher education degree such as a Bachelor’s or Master’s.
Insurance companies do this because they take into account where the risk may be in insuring a person, and rates drivers accordingly. Studies and actuaries have shown the risk factors and certain behaviors are predictive of who is most likely to have more accidents, and thus where auto insurance companies will have to pay out.
For instance, it’s been proven that teenage drivers are most likely to get into an accident, which is why young adults, usually between the ages of 16 and 25, have to pay higher premiums for car insurance. Their immaturity on the road causes them to be less aware of other cars and the actions they do while driving than more mature drivers, making them susceptible to an accident.
The Federal Trade Commission also says that the insurance companies look at a policyholder’s credit rating for credit-based insurance. Credit scores were an effective predictor of what a person would pay. In states that allow credit-based factors in auto insurance companies, car insurance companies can use a person’s credit score to predict future claims, and thus use it in their calculation of your final premium.
State laws vary on how rates can be set, and auto insurance companies themselves weigh different factors differently. While education may be important to one, it may mean very little to another.
About Car Insurance
Car Insurance Quotes Online (http://www.car-insurance.org.za/) is an internet resource for finding the best coverage for your vehicle while not making you take out a second mortgage for a reasonable policy. Head on over to Car Insurance Quotes Online and fill out minimal information to get a quote from several reputable car insurance South Africa companies.
Car-Insurance.org.za
Customer Service
4157669098
info@car-insurance.org.za
Source: EmailWire.Com 
Source: EmailWire.com
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