In Canada, as in many countries, the occupation you list on your car insurance application can impact your premium. Insurers use statistical data to determine the risk associated with various professions. It’s important to note that exact rankings might vary between different insurers and over time, but historically, certain trends have been observed.
Jobs that might lead to higher premiums:
- Delivery Drivers: The more you drive and the more time-sensitive those drives are, the higher the risk of an accident.
- Taxi Drivers: They’re on the road frequently, often in high-traffic situations.
- Journalists: They often have irregular hours and may rush to breaking news stories.
- Doctors: High-stress professions can sometimes lead to more accidents. Doctors, especially younger ones, might also work long shifts leading to potential fatigue on the road.
- Sales Professionals: Their job often requires a lot of travel, which can increase the risk of accidents.
- Entertainers and Athletes: Some insurers may deem these professions riskier due to potential erratic schedules and lifestyles.
Jobs that might lead to lower premiums:
- Teachers and Professors: Often have stable hours and are deemed to be more cautious drivers by some insurance companies.
- Engineers: This profession is often associated with a meticulous nature and lower accident rates.
- Scientists: Similar to engineers, scientists may be seen as methodical and cautious.
- Accountants: They often have regular, predictable hours and their professional nature might be associated with careful driving.
- Nurses: While they work long hours like doctors, statistical data might show they get into fewer accidents. However, this could vary based on the specific insurance company’s data.
- Retirees: Even though this isn’t a job per se, retirees often get discounts because they tend to drive less and are not commuting during peak hours.
Other factors, such as your driving record, where you live, the type of car you drive, and how much you drive, will also significantly impact your insurance premium. Also, it’s crucial to always be honest when listing your occupation. Misrepresenting information on an insurance application can lead to denied claims or even policy cancellation.
Best industry for car insurance
Typically, insurers use historical data to analyze the likelihood of claims being made by people from different professions. Those with lower claims rates often receive better insurance rates. Here are some industries or professions that often see favorable rates:
- Education: As mentioned earlier, teachers and professors are often seen as low-risk by insurers. They usually have stable working hours and are perceived to be responsible drivers.
- Science and Engineering: Engineers and scientists are often seen as meticulous and cautious, leading to lower rates.
- First Responders: Firefighters, police officers, and paramedics might be offered lower rates by some insurers due to the responsible nature of their professions.
- Healthcare: Nurses and certain healthcare professionals (excluding doctors, who might have higher rates due to long and irregular hours) might receive favorable rates.
- Civil Servants: Government employees might also get discounts or preferred rates with some insurers.
- Pilots: While they maneuver planes in the sky, pilots are often perceived to be disciplined and cautious, leading to lower car insurance rates.
- Retirees: Again, though not a profession, retirees often have lower rates because they aren’t commuting or driving as frequently as the working population.
- Clerical/Office Workers: Due to regular hours and a potentially low-stress environment, they might have slightly better rates.
Car insurance occupation categories
Here are some general occupation categories that Canadian insurance companies might use:
- Professional: This can include jobs like doctors, lawyers, engineers, accountants, and architects.
- Technical and Supervisory: Could be jobs like computer technicians, lab technicians, or supervisory roles in various industries.
- Clerical and Administrative: Secretaries, administrative assistants, data entry clerks, etc.
- Sales and Service: Retail workers, customer service reps, salespeople.
- Skilled Trades: Electricians, plumbers, mechanics, builders, etc.
- Managers and Officials: Those in management roles across various sectors.
- Retirees: While not an occupation, retirees are often grouped into their own category.
- Students: Full-time students, whether in high school, college, or university.
- Homemakers: Individuals primarily responsible for running or managing their family’s home.
- Unemployed: Individuals who are not currently employed.
- Transportation: Taxi drivers, truck drivers, delivery drivers, etc.
- Education: Teachers, professors, and other educational roles.
- Healthcare: Nurses, therapists, lab workers, and other non-doctor healthcare roles.
- Public Sector & First Responders: Police officers, firefighters, paramedics, and other public sector workers.
- Business Owners: Those who own or co-own a business.
- Arts and Media: Journalists, artists, entertainers, etc.