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Posted: Monday, 12 August 2013 4:55AM

Controversial study shows why some pay higher auto insurance



How exactly are your auto insurance rates determined and what's a better predictor of your risk behind the wheel?

The Consumer Federation of America says in their new analysis that blue collar workers and those with just a high school education are paying a lot more in some cases.

The CFA says a supervisor or manager with a college degree, working at the same place, pays less with many major insurance companies.

Click here for more from the Consumer Federation of America.

Louisiana Insurance Commissioner Jim Donelon says it is legal here, but he doesn't think it's commonly used. "What is much more prevalent, and has been around for more than a decade, is the use of credit scores, and that's equally controversial."

It's not your driving record that insurance companies want to look at Donelon says, "The industry would push back and say: Credit score and to a lesser degree, education and income, is a statistically accurate predictor of the likelihood of a claim ending up in litigation."

Click here for the insurance industry's response to the CFA report.

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