Occupation is one of the determining factors of your auto insurance premium. Insurance companies determine auto insurance premiums based on several factors including age, gender, marital status, the area you live in, the type of vehicle you’re driving, driving record, driving experience, credit rating, education, mileage counts, car safety features and occupation. Since auto insurance premiums are determined by the level of risk the insurance company undertakes to provide coverage against losses including car damages and medical expenses, the riskier your profession the highest the risk your insurer accepts to compensate your losses for an adequate premium.
Assessing If You Have a High-Risk Occupation
If you work as a receptionist and you spend most of your time at your desk talking on the phone with customers, you are not posing a major risk to your insurance company. You work indoors, at an average job at the office, without hazardous tasks. Therefore, your insurance premium will be equally average. On the contrary, if you work at the circus taming wild animals, your job is considered high-risk and automatically your insurance premium will be considerably higher. Some insurance companies may even deny you with insurance coverage because the accepted risk to insure you is extremely high.
To assess if you have a high-risk profession you should evaluate the possibility of sustaining car damages as a result of driving under stress, at night, under time pressure or with an increased likelihood of having consumed alcohol because of your job. For instance, if you are a taxi driver, you are on the road more hours than an average driver, adding more miles on your vehicle, driving at night, driving under time pressure or driving in peak hours. If you work at a bar, you are more likely to have consumed alcohol and drive your car. All these factors pose a higher risk for getting involved in a car accident and therefore your auto insurance premium will be higher than that of an administrative assistant.
Occupations with High Auto Insurance Premiums
The following jobs are considered high-risk professions because they involve working long hours, are highly stressful and/or they include a lot of driving to client meetings. All these factors increase the risk of driving tired or under time pressure as well as the miles put on the vehicle. In fact, the rate of car accidents sustained by doctors is slightly lower than the rate of car accidents for teen drivers. This shows that being a doctor is a high-risk profession because doctors work long hours and are often sleep deprived.
Based on above factors, occupations that are considered high-risk professions and have high auto insurance premiums are doctors, architects, attorneys, lawyers, judges, social workers, businessmen, business owners, executives, real estate agents, real estate brokers.
Occupations with Low Auto Insurance Premiums
Unlike doctors and business owners, scientists and actors are considered to have low-risk occupations and therefore safer driving habits. In addition, retired people or people who work from home can also have lower auto insurance premiums because they put less miles on their vehicles, drive less hours during the day and are less likely to get involved in a car accident
Based on the above factors, occupations that are considered low-risk professions and have low auto insurance premiums are pilots, scientists, actors and artists.
How Can You Make Your Occupation Work In Your Favor?
When applying for auto insurance coverage you should accurately describe your occupation to avoid the risk of paying a higher auto insurance premium. To make your occupation work in your favor when it comes to auto insurance, you need to include an accurate description of your occupation, especially if you have distinct roles in your job. For instance, if you are both an editor and a publisher, make sure to include both titles in your application. Or, if you are a student but you also work as a medical intern, you need to state both occupations to get quotes for both.
In conclusion, auto insurance coverage is assessed based on a careful analysis of several factors, including your occupation. The riskier your occupation, the higher your auto insurance premium as the risk of getting involved in a car accident is higher.