Can Your Job Title Impact Your Car Insurance?
Getting a car insurance quote can be overwhelming. You receive numerous advertisements from a variety of companies by mail, email and let’s not forget those hilarious commercials. Each carrier offers a unique incentive. They also give you so many options with varying limits and coverages. Let’s not forget the laundry list of questions they ask in order to produce a quote. While those answers may seem trivial they can drastically affect your premiums. Besides your type of vehicle insurance carriers look at so many personal factors including your credit score, daily commute, buying habits, marital status, education level, and even your job title.
Who Qualifies for Discounts on Auto Insurance?
Auto insurance carriers often provide discounts for things such as defensive driving, good student, homeowner, or accident-free discounts. Many people don’t know, and would probably be surprised to learn that certain occupations or education levels could also receive additional discounts. Most people probably wouldn’t even think twice about the job title they are putting down when getting a quote for car insurance. Yes, your job title may impact the premium you pay on your auto insurance policy, depending on which insurance carrier you select. Some carriers may provide discounts while with others may charge a higher premium based on your job level. For example, with one carrier the CEO of a company may pay less than the receptionist because they are viewed as more responsible and will pay attention on the road. While another carrier may charge the CEO more since they expect them to be on the road more increasing the likelihood of an accident. After reading this you may have a different outlook.
How Do Insurance Companies Determine Premiums?
Many factors go into consideration when an insurance company determines your premium.
Your job title and education level both play a role. Someone with a lower education level or an entry-level position is viewed as a higher liability, therefore, charged a higher premium. Essentially this rule means the less money you make, the more you will pay in auto insurance premium. This may seem unfair, but individuals with a higher education level are viewed to be more responsible consequently leading to a more responsible driver. Insurance companies invest a lot of money into actuaries whose job is to crunch numbers to predict the risk of certain locations and people. Their data shows a driver’s occupation is directly related to how likely they are to get into a car accident. So not only can your education level impact your auto insurance premium but certain occupations can also increase your premium.
For example, a DJ is viewed as a high-risk occupation because they are most likely to be on the road late at night and are likely to be carrying expensive equipment in their vehicle. But, just as there are occupations that are considered high risk, there are also those that are considered low risk.
Here are some examples:
- Teachers
- Doctors/Nurses
- Lawyers
- Accountant
These professions are considered low risk because their job requires attention to detail, therefore they are seen as having good driving habits.
Your Occupation Can Earn You Discounts
Some insurance carriers provide discounts for certain occupations. For example, the carrier Selective provides an additional 6% discount to all certified medical professionals,
including but not limited to doctors, nurses, lab technicians, x-ray technicians, dental technicians, hospital administrators, dentists, veterinarians, pharmacists, and occupational and physical therapists. Another group that is also eligible for this discount is certified educational professionals. This includes teachers, librarians, guidance counselors, principals, college professors, and athletic directors.
Other insurance carriers don’t necessarily provide a discount per se, but if you were to quote identical individuals only changing the education level or occupation, you will likely see the difference in the premium. Another example would be Progressive they do not provide a specific discount for occupation but, within the quotes, you do have to input your highest education level and your occupation. These questions ultimately determine your premium and, if you have a college degree, you will likely come out with a better premium than someone who has a high school diploma.
How Does Unemployment Affect Your Car Insurance Quote?
If you find yourself unemployed, you will find that it will likely impact your insurance premium. Insurance carriers view an unemployed individual as an increased risk because the individual is now expected to be on the road more, running errands, dropping resumes, and driving to interviews. Being out on the road more increases the chances of an individual being involved in a car accident. Additionally, statistics show that an unemployed person is more likely to file a claim. Those unemployed long term are more likely to consider filing a fraudulent claim. Insurance companies also take into consideration whether or not an unemployed person will be able to maintain their vehicle due to their potential financial hardship.
With all that said, we have seen retirees benefit on their auto insurance premium because they are considered low risk. Retirees are no longer forced to drive daily in all weather conditions to work; they now have the choice not to drive if they feel the conditions are not safe. They are also less likely to be driving during rush hours with heavy traffic flow and many other vehicles. Retirees are more likely to be driving less, therefore, decreasing the risk of a potential auto accident and benefiting from lower premium cost.
When it’s all said and done, insurance companies have many ways of determining your
insurance premium. Your education level, occupation, and whether you are a retiree or unemployed are all factors. Because each insurance carrier is different and may determine different premiums for you, it’s always best to shop around; this way you know which carriers are your best options.
The best way to easily shop around different insurance carriers is to utilize a local insurance agency like Hanson & Ryan. It’s always best to be upfront and honest with all the information the insurance company is requiring as false information can be fraudulent. Let us help you navigate the confusing and time-consuming process of shopping auto insurance, call us today!
