Report: NY automobile insurance coverage firms charge high school graduates far more than school graduates

A new report from the New York Public Curiosity Investigation Group (NYPIRG) says many big insurance coverage companies in New York State gave diverse estimates for the exact same client primarily based on the level of education and work they listed on the application. NYPIRG says on average, Geico and Progressive charged a financial institution teller with a substantial college education 19% more than a bank executive with a school degree. NYPIRG says Liberty Mutual charged consumers with only a higher school schooling 25% more than university graduates.

The practice is legal in New York State but numerous individuals view it as unfair. Roberta Williams from Syracuse stated the notion of charging individuals a lot more for insurance because they did not go to school is ridiculous.

“What does your education have to do with your potential to drive? Most truck drivers and skilled drivers never have large ranges of schooling and they are the very best drivers,” said Williams.

NYPIRG says insurers are putting an additional burden on lower revenue New Yorkers who can least afford to spend higher rates.

“What we’;re saying is automobile insurance charges must be primarily based on how you drive, not who you are,” mentioned Julia White from NYPIRG’;s Syracuse office.

In a statement to CNYCentral, assistant general counsel Jim Whittle from The American Insurance Association said “the use of factors this kind of as continuity of coverage, area of the automobile, credit-based insurance scoring, driver expertise, schooling and occupation helps insurers to a lot more accurately value threat.” 

Not all organizations use all offered information. State Farm and many smaller sized insurers do not change charges primarily based on training or occupation. Tim Dodge from the Independent Insurance Agents and Brokers of New York says it is a great reminder for buyers to store close to.

“It points out the rewards of obtaining numerous estimates every time you are buying for auto insurance coverage because different firms are going to seem at different factors,” says Dodge.

Roberta Williams stated insurers should be prohibited from charging drivers far more simply because they did not pick to go to school.

“Perhaps I’;ll make out properly with it. I have a doctorate – but which is not wonderful. It has nothing to do with somebody’;s potential to drive” stated Williams.

NYPIRG is asking New York State regulators to reconsider allowing insurance coverage firms to use schooling and occupation as variables for identifying car insurance costs.

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