Reply #27: You're right - the answer is Statistics -

[lynne]

- and I wonder if the education connection may have more to do with occupation than anything else. Auto apps ask for occupation and occupation directly ties into vehicle use. A blue-collar worker may be driving from one job site to another during the day, increasing his exposure and risk. A white collar worker will be driving to his office and parking his vehicle for his work day and will have less opportunity to have an accident than the blue-collar risk who is on the road several times a day. Occupation relates directly to both vehicle use and to education, which may be where this comes into play.

Financial scores are used for both auto and home underwriting as those with higher scores likely have newer vehicles and homes (older houses and cars have more losses) and they statistically file fewer claims. Those with higher financial scores are also considered more desirable as they have a tendency to pay premiums on time.