More Bang For Your Buck: Safe drivers may pay more for insurance

If you have an auto accident, or multiple accidents, your rates often increase. That makes sense, but imagine if you find out that someone who has had several chargeable accidents is paying less than you.

Insurance companies have told us for years that good drivers get discounts. You hear that in radio and TV commercials all the time. You may be stunned by a new report claiming that some good drivers are paying a higher premium than drivers who have had accidents.

Driving Record Just One Factor

In a new report, the Consumer Federation of America says some of the largest auto insurers "frequently charge higher premiums to safe drivers, than to those responsible for accidents."

Why? The report explains that accident history is just one factor that goes into your insurance premium, and claims lower income drivers often pay more.

Doesn't That Stink?

Take a look at this scenario:

The Consumer Federation says a 30-year-old single woman who rents an apartment and has no degree, would pay a higher premium than a married woman with a degree who owns a house, even though the married woman had a chargeable accident on her record.    

The Consumer Federation says many insurers now use your job and education, even whether you own or rent, to predict your chance of an accident. It's no longer just your record.

If you suspect you may be paying too much, contact your agent. Or use an online insurance comparison site, like or, to see what other companies will offer you.

As always, don't waste your money.

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