How Education Affects Car Insurance Rates

How You Drive Is Only the Beginning

As most people are aware, there are a number of factors that impact what you pay for auto insurance. And this goes way beyond how you actually drive. You can never have been in an accident and still pay double what someone else who has never been in an accident pays.

Where you live is a huge factor, both what state you live in and then down to the specific ZIP code. For example, the average amount people pay in the state with the cheapest auto insurance, Vermont, is $1,303, and the amount people pay in the most expensive state, Florida, is $3,687. That’s a 182% increase! 

Similarly, we all know age is a major factor, with 16-year-old drivers experiencing rates 254% more than the average 30-year-old. Credit score is perhaps a more surprising rating factor, which many people don’t realize can affect their insurance pricing significantly — there’s a 109% difference on average between a Poor credit score and an Excellent one. 

But today, we’re looking at a rating factor that doesn’t have a hugely dramatic effect on overall prices. It’s not likely to make or break your monthly payment, but it is interesting because you might not realize it’s a factor at all: education level.

Wrapping up

When it comes to education level, the difference in amount you will pay for car insurance is minimal. And car insurance costs are likely not your biggest reason for seeking higher learning.

Research shows that people with Bachelor's degrees earn significantly more than those without ($900,000 over a lifetime for men, and $630,000 for women), so the reason to seek out higher education has greater financial implications than paying a few dollars extra for auto insurance each month.^[2]

Still, it's good to be aware of all the rating factors that may be impacting your auto insurance. This is why it's a smart idea to compare car insurance rates regularly to make sure you're not overpaying. If you've gotten older, improved your credit score by even a single tier, or graduated with a degree, you might just be able to save. 

Methodology

The Zebra’s 2025 Auto Insurance Trends Report analyzes over 32 million car insurance rates to examine how dozens of trends and risk factors affect insurance pricing nationwide.

The auto insurance rates displayed throughout this page come from The Zebra’s Dynamic Insurance Rating Tool. This proprietary insurance premium estimator uses the most recent rate filings across the United States at the ZIP code level to provide the most recent and up-to-date rate data. This data comes from Quadrant Information Services, which sources the most recent and approved rate filings across insurance companies in every state from S&P Global.

Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage at these levels:

• $50,000 per person/$100,000 per incident for bodily injury liability
• $50,000 per incident for property damage liability
• $500 deductibles for collision and comprehensive coverage

To provide insight to consumers on how specific personal factors (like age, location and coverage level) can affect your premium, this base profile is then adjusted for different factors commonly used by insurance companies.