Your Job Affects Auto Insurance Premiums

You might have always wondered if your job had anything to do with your auto insurance premium. The short answer is yes. Comparison Market's 2006 Occupation Report reveals how occupations often correlate with auto premiums. This happens because insurance companies rate all jobs on a risk scale, and since some of those jobs are a higher risk than others, so are premiums. Below, we’ll take a look at some of those jobs and inherent risks.

Occupation Affects Insurance Premiums

The correlation that insurers find between your occupation and an insurance claim involves driving habits. The risk factor associated with your job takes into account things such as how the car is used in relation to the work, where it’s likely to be parked, times when it will be driven, and how much stress you’ll be under when you’re operating it, all of which affect the likelihood of an accident or theft.

Let’s use an example. A newspaper delivery person driving all day is most likely a higher risk than the personal banker sitting at his desk all day. Similarly, a woman with an outside sales job must drive frequently and has a higher premium than the woman who lives downtown and walks to work even if she drives the same car and has a similar driving record. One could also expect higher rates for a real estate agent or an attorney; high stress and heavy driving equal higher premiums.

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How Insurance Premiums Differ by Profession

Here are some interesting numbers from a 2006 occupation report. At the lowest on the auto insurance risk scale are scientists, pilots, navigators, actors, and artists who pay an average of $935.76 per year in premiums. At the opposite end of the scale are attorneys, lawyers, judges, executives, and business owners who spend the most at an average of $1,383.63 per year in premiums.

Why? It’s a matter of lifestyle and driving habits. Those attorneys and executives and business owners all have extremely stressful jobs, for which they spend greater time behind the wheel and talk more frequently on their cell phones than the average driver, both of which boost the risk of an accident. At the other end, scientists are viewed as being very meticulous and detailed-oriented people, which often translates to good habits on the road. Artists and actors statistically both live and work downtown, and thus spend very little time driving their cars.

If your occupation increases your premiums, don’t panic. There are other ways to offset the high risk factor of your profession, such as a good credit report, a good driving record, or even an advance payment plan. The truth is no single factor determines your premium alone.

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