Does My Job Affect My Car Insurance Rate?

Auto insurance providers consider your job if it may represent an increased risk of car damage and insurance claims. Actuarial data has shown that drivers with certain professions are more likely to commit violations such as at-fault accidents or DUIs. In addition, drivers whose job requires them to be on the road more are at a higher risk of incidents.

In some cases, a job may require an add-on, such as rideshare coverage, or a full-fledged commercial auto insurance policy, which an insurer needs to know so it can provide you with the necessary coverage.

On the flip side, some insurers also offer occupation discounts for certain professions — like teachers, military personnel, nurses and engineers — which are associated with lower-than-average claim rates. USAA and Horace Mann have lower rates across the board to military personnel and teachers, respectively. Some companies also partner with professional organizations, such as teachers unions, to offer favorable rates to members.

The bottom line is that insurers use your job title to infer details about your driving habits, vehicle usage, financial stability and likelihood of filing a claim, all of which contribute to the rate they charge you.

Certain jobs are more likely than others to affect your car insurance premium, whether positively or negatively.

The following jobs are considered higher risk and may increase your car insurance rate:

• Delivery driver
• Rideshare driver
• Chef/bartender
• Sales rep
• Construction worker

These jobs pose a higher risk due to increased time spent driving in general and/or driving at more dangerous times of the night.

Meanwhile, the following jobs may lower your car insurance rate:

• Educator
• Health care provider
• Engineer
• Scientist
• Accountant

People in these professions generally have lower mileage and are seen as more cautious, risk averse and less likely to file claims, all of which contribute to lower rates.

The way insurers calculate risk and the discounts they offer vary by company, so there is no definitive list of jobs that are guaranteed to increase or decrease your premium. However, drivers in these positions are more likely to pay slightly more or less based solely on their job.

Here’s how to make sure you’re saving as much as possible, particularly if you work in a lower-risk profession:

• Ask about occupation discounts. Several insurance companies, including GEICO and Liberty Mutual, provide discounts to drivers in certain professions. It’s always worth asking your insurer if you might be eligible.
• Look for affinity discounts. In addition to occupation discounts, many insurers have affinity discounts, which are available to members of professional associations or unions. These may include teachers unions, alumni associations and military organizations.
• Shop around. Every insurance company calculates risk differently, so it’s wise to shop around with different providers, particularly if you think your job might be contributing to a higher rate. Some companies may offer you a lower premium than others based on the same information.

Although your occupation may play a role in your auto insurance rate, many factors affect your car insurance premium far more. However, it’s still possible to find affordable coverage if you work in a higher-risk profession, and a lower-risk job does not guarantee great rates. Here are some of the many factors insurance companies consider when determining your rate.

Driving Record

Your driving record is one of the most important factors in determining how much you pay for car insurance. Driving safely and avoiding violations will help you get the lowest possible rates and will qualify you for savings like safe-driver discounts. If you have one or more violations on your record from the past several years, you can expect to pay more — sometimes significantly more — on average. A serious violation, such as a DUI, will typically increase your rate more than a relatively minor one, like a speeding ticket. Consider getting quotes from the car insurance providers that insure high-risk drivers.

Location

Where you live plays a role in your rate, as every geographic location has its own risk factors, including population density (which leads to a higher risk of accidents), natural disasters and theft rates. In general, drivers in large cities pay the most for car insurance.

Vehicle Type

Your car make and model affect your auto insurance rate. This information tells insurers about your risk profile because some vehicles are linked to an increased risk of accidents, and others may cost more to repair.

Coverage Levels

Your coverage levels have a large influence on your premium. The higher your liability limits and the more add-on coverages you have, the higher your rate will be.

Age 

Auto insurance for young drivers is much more expensive than auto insurance for other age groups because young drivers pose a higher risk to insurers. Rates tend to plateau in your late 20s, with drivers in their 30s through 50s paying the least, on average. Rates can start to increase again slightly as a driver gets past 60. Hawaii and Massachusetts are the only states that ban insurers from using age as a rating factor.

Credit History

Unless you live in California, Hawaii, Massachusetts or Michigan, your credit record will factor into your insurance rates. Auto insurers use credit information to calculate a credit-based insurance score, which can have a major impact on your premiums. Those with poor credit pay an average of 80 percent more than those with excellent credit. Learn more about how credit scores affect auto insurance.

When you request an auto insurance quote, insurance companies use proprietary rating methods to calculate how much of a risk you pose. This directly translates to how much they charge you for coverage. Every company uses its own method based on the personal details they collect from you, which can include information about your job.

Insurance companies care about your job because it can provide useful information about your risk profile. For example, some jobs require a lot of driving and, therefore, directly put you at a higher risk of accidents. Other jobs affect your risk more indirectly — for example, teachers are considered more cautious and risk averse, which leads to a lower risk of claims.

That said, other factors usually matter more than your job to car insurers. Keeping a clean driving record and maintaining good credit will go a long way toward keeping your rates affordable.