Does My Job Affect My Car Insurance Rates?

Does My Job Affect My Car Insurance Rates

Does my job affect my car insurance rates? Occupation is just one of the factors that can affect one’s car insurance premiums. When shopping for a good auto insurance policy, it is important to sit down with you local independent auto insurance agent to discuss your own personal job and how it may affect your auto insurance premiums.

Insurance companies calculate their premium costs based on risk factors. Age, driving record, car safety: these are all things that go into consideration. But on the same notion, insurance companies view certain occupations as having a higher risk of a cost to them than others.

If you work as a librarian, or in a cubicle answering phones for a majority of the day then your risk level is low and you will likely not have to worry about your job affecting your auto insurance premium. On the reverse end, if you work as an electrician who continuously has to climb high cell phone towers, or maybe you work as a firefighter or doctor, dealing with high stress situations and hazardous situations, then your auto insurance premiums will reflect that.

The job itself does not have to directly cause you to drive more. The insurance company views more stressful and dangerous jobs as a high-risk profession because the they see it as a greater possibility of an car accident occurring as a result of driving under stress, at night or under pressure. An office worker is not likely to have a stressful call at home that demands him to be at work within five minutes, but as a surgeon that five minutes could be the difference between life and death for someone. This is why a doctor may pay more than a businessman.

This is a generality as underwriting opinions vary wildly from company to company.

How is insurance pricing set? >

Does My High Stress Job Affect My Car Insurance Rates

High stress is one factor that insurance companies consider when looking at an occupation. Another factor is how much someone drives in his or her job.  A news reporter or a taxi driver for example, drives a lot.  As a result they put their selves at a greater risk of an accident than someone who does not drive as much. These kinds of occupations will cause an increase in auto insurance premiums.

High stress jobs where you likely are working long hours on little to no sleep put people at a greater risk of an accident. Statistics show that doctors have car accidents nearly as much as teenage drivers.  Some think this is due to distracted thoughts about patients while driving. Based on the data insurance companies collect, high-risk professions that may have higher auto insurance premiums include doctors, architects, attorneys, lawyers, judges, social workers, businessmen, business owners and others.

When applying for auto insurance, make sure you ask for the independent auto insurance agent’s advice when accurately describing your occupation. This may help you avoid the risk of paying higher insurance premiums. The more accurate you are the more helpful the independent insurance agent can be.  Insurance companies will always default to a negative assumption when faced with incomplete information.

An independent agent could offer quotes from various companies who might have completely different opinions about your profession as it relates to predicted driving loss experience.

Other Enhanced Insurance articles related to Car Insurance Premiums:

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How Much Car Insurance Do I Need?

How Do I Buy Car Insurance?

Cancellations vs. Non-renewals

Car Insurance Discounts

Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.

While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.

Jim operates an insurance agent network called Insurance Partners, aggregating agents in the Midwest for over 25 years. He was National Agent of the Year for Metropolitan in 1993 and Midwest Agent of the Year for Travelers in 2011. He served as a founding board member of the Surplus Lines Association of Minnesota.

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