The Role of Occupation in Determining Auto Insurance Rates
What if where you worked affected how much you had to pay for your automobile coverage?
No matter where you work, chances are you worry about paying too much for your car insurance. When you speak to those who pay less than you, though, you might start asking the big question: “Does my job affect car insurance rates?”
As usual, the answer is more complex than you might think. Ready to discover if there is an occupation effect on auto insurance rates, or maybe you just want to lower your monthly premium? Keep reading to learn all about the role of occupation in determining car policy rates.
Dissecting the Link Between Careers and Auto Insurance Rates
Are you asking yourself, “Does my job affect car insurance rates?” It may sound like one of the common auto insurance myths, but the short answer to this question is “yes.” There are many different factors that carriers look at when determining your monthly premium. The exact job title you hold is one of those factors.
Fortunately, it is a relatively small factor, so there is a relatively minor occupation effect on auto policy rates. However, that means there are technically different coverage rates by occupation, and you can potentially lower your own monthly bill by knowing more about why carriers focus on your job title in the first place.
Why Insurers Eye Your Job Title
Insurers mostly care about your job title because they are worried you might have a high-risk occupation. Certain jobs have higher rates of DUIs and at-fault accidents, so those working in these fields may pay more for coverage. Conversely, some jobs are lower risk, and those in these professions may qualify for special discounts on their monthly insurance premium.
Behind the Wheel of Rate Determination
Now you know that higher car coverage rates may be caused by working in a high-risk occupation. That leads to some obvious questions, though. For example, if there is a difference in car insurance by profession, what jobs lead to higher premiums and which ones lead to lower premiums?
Below, you will discover the answers to these questions. You will also learn about when to tell your carrier that you have switched jobs in order to potentially maximize the monthly savings on your premium.
Revving Up Premiums: High-Risk Occupations
Examples of high-risk occupations that drive up car insurance rates include waiters, bartenders, chefs, and rideshare drivers. People in these professions are likely to be driving at odd hours with very little sleep. Other occupations include doctors, lawyers, and executives, who are also likely to drive at strange hours and get into accidents.
Coasting on Discounts: Low-Risk Job Categories
It may not seem fair that there are different insurance rates by occupation, but this can work in your favor. Certain industries have lower premiums, including construction, manufacturing, engineering, and agriculture. When in doubt, be sure to ask your existing carrier how your title affects your premium and whether you qualify for any special discounts.
When to Signal Your Insurer About a Job Shift
You should tell your carrier you have switched jobs once you have passed any probationary period. Remember, because the carrier prices car insurance by profession differently, letting them know about a new job once you are settled in could help you potentially start saving money each month.
Full Throttle on Facts: Unemployment and Insurance Costs
Because occupations can drive car insurance costs up, you may be wondering if being unemployed means paying less each month. And the truth is that it depends. In general, unemployed drivers do pay a little less than the national average premium cost of $135, so it is fair to say that a lack of a job can help these drivers save money.
However, some of the safer occupations (including mechanics and teachers) may pay less than the national average. And while being unemployed can drive your coverage costs down, it does not guarantee the lowest possible premium.
Military and Essential Workers in the Insurance Landscape
Unfortunately, military service members tend to pay more for their car premiums than most other professions. That does not mean, however, that carriers are unpatriotic. In this case, the carriers are simply looking at who the average service member is and how that impacts their driving record.
For example, over half of insured service members are under 30, and more than 80% are men. Younger people — and younger men, in particular — pay more on premiums, so this double whammy drives soldiers’ premiums higher than they otherwise would be.
However, many insurers also offer great discounts for service members, so be sure and ask your agent.
Insuring Full-Time Students: Strategies for Saving as a Scholar
Is car insurance cheaper for students than for the employed? Generally, the answer is “no” because students tend to be younger. Therefore, carriers are likelier to charge them a higher premium.
Of course, some students are older, and some students may have an occupation that drives down their own rate. In general, though, coverage for students is likely to be more expensive.
Get a Rate That Works for You – Explore Auto Insurance
Does my job affect car insurance rates? Now you know the answer is “yes,” and you even know which occupations are likelier to pay a higher premium each month. However, do you know who can help you save no matter where you work?
At InsureOne, we specialize in saving drivers like you money on premiums each month. When you are ready to get the rates and customer service you truly deserve, come get a quote online. You can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to find an InsureOne office near you.