Depending on the state you live in and your level of education you might qualify to pay less on your car insurance. You may wonder why insurance companies place so much value to factors like age,occupation, level of education among other factors. The reason for these requirements are insurance companies consider potential risks when they offer insurance. According to Penny Gusner, certain behaviors or risk factors are predictive of who is likely to have more accidents — and thus claims that auto insurance companies have to pay out.
The Federal Trade Commission studied credit-based insurance scores and car insurance and found that credit information was indeed an effective predictor of claims that consumers will file.
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