Jul 06

Jon Zimmerman

Higher Income Drivers More Likely To Speed? Will Their Auto Insurance Costs Rise?

by Jon Zimmerman

According to a PEMCO Northwest Insurance poll released last month, Washington drivers who have household income of more than $75,000 a year are more likely than those of household income below $75,000 to speed and talk on a cell phone. Among those drivers who are more likely to speed, the poll found that these drivers are under-55 males who earn at least $75,000 with one or more children at home. The least likely speeders? Empty-nester females over the age of 55 who earn less than $75,000, as well as single drivers without children. But here's what the poll doesn't show: whether the more likely speeders are actually more likely to get pulled over and cited for a speeding ticket or another traffic offense. A conclusion in the poll is that one would think that drivers with children would slow down and obey the speed limit, "helping to ensure they'll be around to raise their kids." However, the poll says nothing about whether parents are more likely to be involved in fatal collisions or that the absence of fatal collisions will help parents be around to raise their kids any more than quitting smoking or abstaining from trans-fats. What is more probable is that PEMCO and other insurance companies will use this and other similar data as an excuse to raise insurance rates for certain groups of people. It could be that under-55 male drivers with higher income, especially those who receive a speeding ticket, will see a remarkable rise in their insurance rates. Those drivers concerned about insurance rates would be wise to fight their tickets.


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