When people look for auto insurance, they typically know that their age, gender, driving history, and the car may affect the rates they pay. However, many are surprised to find that their occupation may also play a role in determining car insurance rates.
So how do they determine auto insurance based on your job? Well, companies love to look at probability statistics. Basically, they analyze and combine every demographic component to predict the chances of you getting into a car accident, and one of these factors is your occupation.
They go through historical data
By poring through their history of claims, insurers can find that people in specific occupational fields tend to file fewer claims than people in other fields, which may be due to a variety of reasons like behavior, travel patterns, and location.
Some auto insurance firms consider these factors in the rating process but do not openly advertise it. Others, like Country Financial and Farmers Insurance, promote a flat, percentage discount rate for consumers with specific occupations or educational degrees.
Jeff Muniz, a spokesperson for Country Financial, says that discounts are given to occupations like teachers and first responders because “People in these occupations represent a lower level of risk, and the discount is designed to reflect this.”
Some occupations with the low car insurance rates include:
So why do these jobs have low insurance rates? In terms of scientists, they pay less for auto insurance because they are seen as detail-oriented people, which in turn leads to great driving habits. For insurers, people with great attention to detail usually translate to safer drivers.
The same things go for pilots, whose jobs often obligate them to focus all their attention on the safety of others, a skill which is beneficial and usually transferable to their driving skills. Also, their driving record can often play a role in their professional life because their careers can be put in danger from a car accident or a DUI. As a result, insurers can often depend on pilots to be extra careful not to get into any car accidents.
Actors, on the other hand, pay low insurance rates because their jobs often are located in urban areas, where there is a higher probability that they commute by bus or train to arrive at their workplace instead of driving. This limits their driving time as well as lower their chance of getting into an accident. According to a report created by Insurance.com, these occupations pay at an average of $935.76 per year for car insurance.
Now that we have explored occupations with low car insurance premiums, let’s take a look at professions with high car insurance rates:
- Real estate brokers
- Social workers
- Business owners
High Insurance rates!
People with these jobs typically pay the highest insurance rates at an average of $1,383.63/yr. Why such a significant difference? Well, executives and lawyers generally have jobs that cause a large amount of stress, which frequently requires them to spend a more significant amount of their time in their cars, talking on their cell phones than the typical driver. In addition to the stress, people with these occupations typically work long hours.
Did you know that the rate of car accidents for doctors is only marginally below the rate for teenagers? This is generally because doctors are many times sleep-deprived, which can, in turn, play a large role in their concentration when driving. Workers in this category are also more prone to be self-employed or tend to drive more often due to client meetings.
So basically, when determining what occupations are the most accident-prone, insurers typically look at these factors:
- Stress level
- Occupation training involves the safety of others
- Job-Related Travel
- Potential for distractions, i.e., cell phone
- Use of public transportation for job
Not all firms use the same factors
Despite all this, by no means should you lie about or change your occupation. Even though your occupation may typically lead to larger or smaller insurance rates, not all insurance firms use these factors in the same way. There are several things you can do to prove to insurance companies that you are a safe driver.
If you are already in a situation where you do not drive often, you should contact your insurance company immediately about getting a discount. What’s important is to take advantage of online tools like our car insurance comparison tool in the right sidebar to find that company that best suits your needs.