How Does My Job Affect My Car Insurance Rate?

When it comes to determining how much you pay for auto insurance, there are many factors that insurance companies take into consideration, from your credit score to your marital status, but did you know that your occupation also plays a role in calculating your car insurance rate?

Let’s look an example to help explain why this occurs. Suppose two policyholders, Steve and Bill, only differ in their occupations – same age, same gender, same marital status and residing in the same neighborhood. However, on one hand, Steve is a criminal defense attorney who works with clients facing serious charges. On the other hand, Bill is a librarian, who helps mostly young students with research papers and older adults trying to find a book they read years ago. While Steve must grapple with the fact that his clients’ fate can depend on his work, the most emotionally challenging aspect of Bill’s job is likely enforcing fines for overdue books.

Although this difference in occupation may not seem to directly relate to auto insurance, which of these two drivers would you rather have behind you in rush-hour traffic? Stressed-out Steve or laid-back Bill? You would probably prefer to have the less stressed driver behind you, and similarly, insurance companies prefer to insure drivers with lower-stress, since people under higher amounts of stress are more likely to be anxious or angry while driving. In other words, people with high-stress jobs tend to have worse driving habits and higher accident rates.

In addition to behavior behind the wheel, another factor insurance companies take into consideration in regard to occupation is the amount of time drivers spend on the road. In the aforementioned example, Steve who likely drives back and forth from meetings and the courthouse, probably spends much more time on the road than Bill, which translates to higher odds of colliding with another car.

Is My Job Likely to Boost My Insurance Rate?

Although car insurance companies consider lawyers, along with other business people, to be the occupations with the highest stress levels, other high-stress jobs that could affect car insurance rates include:

·         Physicians and nurses

·         Military personnel

·         Police and firefighters

·         Social workers

·         Real estate agents

·         Architects

What Types of Jobs Are Associated with The Lowest Car Insurance Rates?

Considering that insurance companies prefer drivers with low-risk jobs, there are certain types of occupations that may score you savings on your auto insurance, especially jobs that require precision. This is because insurance companies view people with these types of jobs as more likely to be prudent and careful. Several of these types of jobs are:

·         Pilots

·         Scientists

·         Engineers

·         Artists

And there’s one group of people that doesn’t suffer any job stress: retired people.

Similar to the many other variables involved in calculating car insurance costs, there are exceptions to these relationships between occupation and premium. For instance, some companies will give physicians lower rates because they view them as less likely to report a claim in the event of a fender bender, as they may not have the time.

Although you likely aren’t going to change your job just to get a better car insurance rate, you may wish to discuss your situation with an independent insurance agent if you believe your circumstances differ from other drivers who share your occupation. A lawyer who works from home in a field of law that never requires litigation, for instance, may want to explain his/her situation to an insurance agent to determine whether these details could cut costs.

At Hunkins & Eaton Insurance Agency in Lisbon and Littleton, N.H., our agents take the time to assess your specific situation and match you with the insurance company and coverage that best suits your needs. As independent agents, we work with many different companies, allowing us to find the right coverage at the most competitive price for each of our policyholders. For additional information about how your job affects your car insurance rate, or to get a free quote for auto insurance in Littleton, N.H. or the surrounding area, please call us today at 603-444-3975 or visit us online at www.hunkins-eaton.com.

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