The connection between your occupation and car insurance rate
Insurance is mainly based on the theory of calculated risk. Car insurance companies will consider all relevant aspect of a person’s life when they determine the rates. They usually go far beyond just driving history, gender, age, and driving habits, and might ask about small details like your occupation and your education level.
When you compare car insurance companies, you will likely find that various companies might factor your education level and/or your occupation into your insurance rates.
1. Occupation & Car Insurance Premiums
The occupation could impact your car insurance rates. In terms of statistics, some specific careers are associated with higher risk of accidents, whilst other careers are associated with much lower risk.
Occupations With High Risk Of Accidents
Those drivers having the following jobs are usually subject to much higher rates:
• Real estate brokers
• Business owners / executives
• Salesman / saleswoman
As these jobs usually involve higher stress levels, overtime, and lack of sleeps, the risk of accidents could be higher than the average among those drivers who have these occupations.
Many of the jobs above require the involved driver to move between client meetings and appointments during the day.
Occupation With Low Risk Of Accidents
The jobs accompanied with the low risk of accidents, in terms of statistics, include:
• Nurses or first responders
As these occupations are reckoned significantly stable and require a detail-oriented type of personality, they seem to be associated with lower risk of accidents.
For example, teachers have been largely shown to possess better driving records than those in other professions, and many car insurance companies sell their car insurance just to teachers due to the little chance of insuring these drivers.
Obviously, not all drivers in the list of “high-risk occupations” are high risk ones, and not all drivers in the low-risk occupation list have spotless driving records. However, the main point here is, with all of other factors that auto insurance companies count for upon determining the car insurance rates, the average risk.
Hence, it is very worth your time to shop with comparison in order to obtain the best car insurnace policy.
2. Other Factors
When it comes to determining car insurance rates, other factors also play a significant role. For instance, doctors might be more likely to be involved in accidents, yet their ability of paying for the damages without filing an insurance claim might also mean that they will not cope with higher rates. Nevertheless, this depends on car insurance companies.
Additionally, some people with high risk jobs using public transportation to transfer might get lower insurance rates than other drivers in the same occupation but transferring in his personal vehicle.
3. Auto Insurance Premiums And Education
If you have a higher level of education, chances are you will be more likely to have lower insurance rates. This is withdrawn from statistical average.
People with a graduate degree will be less likely to be involved in accidents.
So, by listing one of your family member who has a high level of education as a primary policyholder, you will be able to save money upon applying for a single auto insurance policy.
Read more: 3 factors that car insurance companies use to determine your insurance rate
4. Discriminatory or Fair?
Once you realize that your education level and occupation might factor in your auto insurance rates, you might find yourself questioning if this is really a fair practice.
If car insurance companies should be allowed to charge various rates to people based only on schooling and profession or not?
In fact, this has been a criteria practice for many years; those car insurance companies will argue that it is totally based on the numbers: some specific professions statistically show higher risk to their companies than others, whilst higher levels of education seem to prevent lower risk.
Nevertheless, many argue that using occupation as well as education as main factors is discriminatory. That is why California even bans the use of educational level and occupation to the determination of auto insurance rates.
You had better check with your auto insurance company in order to see if they are using your educational level or occupation to calculate your premium. Besides, compare the rates online in order to find the cheapest car insurance policy which suits your demands.