They concluded that typically, poor drivers with good driving records are charged more than higher paid drivers (executives) with 1 $800 at-fault claim (doesn't seem so bad if that's all for the last 10 years?).
Both drive a
http://www.cbsnews.com/8301-505144_162- ... insurance/2002 Honda Civic 7,500 miles each year and buys only the minimum liability coverage ... In fact, drivers who had at-fault accidents, but had a spouse, a college degree, continuous insurance coverage and home ownership paid less -- sometimes dramatically less -- than a single receptionist with a high school education and a perfect driving record, according to a new survey by Consumer Federation of America.
While that's an interesting finding, what I found highly interesting is the fact that Geico is cheaper in (almost*) every city (for the exec, Geico is always cheaper), usually by a significant amount, than any of the other insurance companies surveyed. State Farm, Allstate, Farmers, GEICO and Progressive. *Receptionist rates from Geico in a few cities are a little higher ($20-60; although Chicago has 1 rate much lower) than 1 other company.
I've always used Geico (never had any more than a glass or roadside assistance claim (happy with those), so I can't say how good Geico is when you have a real claim) and thought my rates were reasonable. Recently, I tried shopping around, just a little, to see if my rates could be decreased (I didn't expect to find anything much lower, but I thought I should compare a bit). I was absolutely shocked at the high rates I was quoted. Had I seen this study, I don't think I would have bothered.
Link to study showing quoted costs across the 10 studies.
http://www.consumerfed.org/pdfs/PR.Auto ... .28.13.pdf
market. It compared premiums quoted to two 30-year old women who each had driven for 10 years, lived on the same street in the same middle-income zip code, and sought minimum liability coverage required by that state. But these two women differed in several important respects: One was a single receptionist with a high school education who rents, has been without insurance coverage 45 days, and has never had an accident or moving violation. And the other woman was a married executive with a Masters degree who owns a home, has had continuous insurance coverage, and has had an at-fault accident with $800 of damage within the past three years.
It seems that Geico was pretty forgiving of 1 at-fault accident in 10 years (which is reasonable) for someone continuously insured. I would have liked to have seen prices for the exec without the accident - I wonder how much they would decrease? (Probably a lot, based on my rates).