You might not think that the kind of work you do would have an impact on your car insurance premiums, but your occupation can play a role in how much you pay. All insurance, including car insurance, is about calculated risk. Car insurers take all aspects of your life into account when setting rates - not just your driving record and experience behind the wheel but seemingly unrelated factors like credit score, income level, and occupation as well. In this article, Executive Vice President at United Car Care Rory Angold shares how occupations influence premiums.
Through the years, car insurance companies have found that certain occupations are statistically correlated with higher accident rates. Insurance companies keep detailed data on claim history and insurance costs, and they use those statistics to set future rates.
If you fall into one of those high-risk job categories, you could find yourself paying more for car insurance than drivers in jobs considered less of a risk. The highest risk occupations may not be what you think; they include doctors, lawyers, architects, salespeople, business owners, and real estate brokers.
Some of the high-risk occupations make sense. Salespeople and real estate agents both spend a great deal of time on the road, and that can increase the likelihood of an accident. Doctors may drive at odd hours as they travel back and forth to answer emergency calls or pull all-night shifts at the hospital. Other high-risk occupations are harder to figure out, but statistics still show that workers in those job categories are more likely to get into an accident.
Working in a high-risk occupation can raise your rates, but falling into a lower risk category could put more money in your pocket. Occupations considered low-risk by car insurers include scientist, accountant, teacher, nurse, pilot, and artist.
Some of the jobs on the low-risk list might seem counterintuitive. After all, nurses put in long hours just like doctors, and pilots spend a lot of time traveling to and from far-off airports. Even so, studies have borne out the fact that they suffer fewer accidents, and their premiums are lower as a result.
Changing your occupation for lower car insurance rates might not make sense, but understanding the various criteria car insurers use to set premiums helps you be a more informed consumer. If you fall into one of the high-risk occupations, seeking out an insurance company that places less weight on what you do for a living and more on how you drive can save you money without sacrificing the coverage or protection you need.
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