Insurance, jokes

@hometyme (288)
United States
June 23, 2007 7:42pm CST
I just learned that one's education level can determine auto insurance rates. I know some millionaires with 12th grade educations and some billionaires with 4th grade educations. Does this mean thay these 'poor' people probably don't know how to drive well enough to get a good insurance rate? Maybe Bill Gates can't qualify for the best insurance rate? He dropped out of college, didn't he? Maybe I should also have put this in the jokes section.
1 person likes this
4 responses
@asahibza (388)
• Canada
24 Jun 07
This is a surprise to me. I don't know if education level has any impact on insurance rate. I wish it has. That way many people will be forced to study more. But it might be unfair also. I think I will have to find out and if it already been factored it into my insurance. So far as I know I don't remember any insurance company ever to have asked me my level of education.
1 person likes this
@hometyme (288)
• United States
24 Jun 07
According to more recent information, I think that not all of them consider education levels. Most of my close personal friends have been older than I am, and some of them of considerable wealth. One millionaire, bank board of director friend who, has only a high school education once said to me, "Not everyone is college material". I guess (s)he would be caught in the stereotype rating also. I told the interviewer that I thought it was discrimination against the poor.
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@soccermom (3200)
• United States
24 Jun 07
I am an insurance agent in Illinois, and I have to ask, where are you getting your information from? I have never heard of any major insurance company taking education into consideration when determining auto or home rates. Geico has gotten into a little bit of trouble I believe because of what you're talking about, but I think it was more based on race than anything, and besides that's Geico, which is considered a "substandard" company. Are you talking about Credit Based Insurance Scores? Many companies are starting to use those, but education level has nothing to do with it. Many insurance companies are using Insurance scores to determine rates because statistics show that people with poor payment history and poorer credit tend to have more claims, which drives up costs for all of us. I am not saying I agree with this practice, but the state legislatures do, and it is what I have to abide by. But as far as I know, education has nothing to do with it, I'd like to know where your info comes from.
@hometyme (288)
• United States
24 Jun 07
Today when I was requesting an insurance premium quotation via telephone in an interview with a well known company that I will not mention (for liability reasons), I was asked for my education level as well as for my wife's education level. I questioned the motive. I, too, was surprised. No, not credit based insurance scores. I knew about that. It was not Geico. I don't suppose you would say why Geico is considered substandard? I wish substandard companies could not exist. I don't need substandard service any more than you need excessive claims. I think the consumer should know. That's the reason for this post. I've been with the same company and agent for 30 years. It's getting hard to read the billing.
1 person likes this
@soccermom (3200)
• United States
25 Jun 07
So what was this companies excuse for asking you your level of education? The company I work for doesn't do that, and I work for a large company, although they do ask employment information, and we give the insured the option of not answering, honestly, half the time I don't even ask. Are they trying to keep track of some sort of demographics? Maybe put together a profile of the people they insure? If not, and they are basing your rates on your education level, I would say that is highly discriminatory and it would be in order to file a complaint with your state insurance director.
@soccermom (3200)
• United States
25 Jun 07
Sorry for the repost, but here is why I say Geico is "substandard", and they are not the only one. Here is what the general definition of substandard insurance companies are. They have no exclusive office, they operate primarily through call centers, websites and insurance brokers. Not all brokers are bad, but it's increasingly hard to find brokers that work with reputable companies. They lack face to face service, and lure people, most of them who would otherwise have a hard time getting insurance, with the idea of low rates and sub par coverage, and when they file one claim they cancel them, which results in the insured having an even more difficult time finding good affordable coverage since most companies will charge a higher rate to someone who has been cancelled by another company.
@abroji (3247)
• India
24 Jun 07
Here in India I think they don't any priority for educational qualifications. Not the LIC of India or any other private insurance companies. Thank you.
• United States
24 Jun 07
That is an interesting point...