Safe drivers may pay more for insurance

Insurance companies have told us for years that good drivers get discounts. You hear that in radio and TV commercials all the time.

Then you may be stunned by a new report claiming that some good drivers are paying higher premiums than drivers who've 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 and who owns a house, even though the married woman had a chargeable accident on her record.    

You might say: "Doesn't that stink?"

The Consumer Federation says many insurers now use your job and education, and 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 Insure.com or Insweb.com, to see what other companies will offer you.

As always, don't waste your money.