9 Investigates how your job can cause higher car insurance premiums

ORLANDO, Fla. — Eyewitness News sent reporter Nancy Alvarez to apply for car insurance with other drivers. Alvarez submitted the same exact information as the volunteers: age, sex, city, car make and model plus driving history. The only difference in the application was the level of education and job.

Alvarez said she was a psychiatrist with a PhD and the volunteers told the truth. In the end, Alvarez always got the better rate.

Geico's 6-month premium for the psychiatrist was $441.90. While for Bill, the manager at Disney, it was $523; that’s almost 20 percent more.

A second volunteer, Matt, graduated from a vocational school and works as an assistant. Geico quoted him $609.

“That (is) kinda outrageous,” said Matt.

Angie, a third volunteer who is a full-time student, also ended up paying almost $200 more for a 6-month premium.

Insurance companies are not allowed to use race or income to set rates, but consumer advocates argue the companies are inadvertently doing just that by using jobs and education as factors.

Consumer advocates said the results could come at a cost to minorities or low-income families.

Eyewitness News found out Allstate and State Farm do not use job description and education on their applications; Progressive and Geico do.

Lynne McChristian, with Insurance Information Institute told Eyewitness News insurance rates aren't set on who crashes more, but who is more likely to file a claim.

The spokesperson said someone with a high salary is more inclined to pay out of pocket for a minor crash than someone living paycheck to paycheck.

Three states have banned this practice. Florida has not because insurance companies argue it creates healthy competition.

The insurance information institute said because different companies use different factors to set rates, it pays to shop around.

Contact Nancy Alvarez for more on this story.

Cox Media Group