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HomeCar Insurance ResourcesDoes Occupation Affect your Car Insurance Rate?

Your occupation can affect your car insurance rate if you are listed as a high-risk occupation with your insurance company. When your insurance provider is determining your annual premium, your occupation risk level is taken into consideration. Many people are unaware that your occupation can affect your car insurance rate and how important it is to advise insurance providers of any job changes. Failing to provide your insurance company with any information regarding your personal situation could result in voiding your policy.   

Car Insurance Occupation Categories


There are two occupation categories within the car insurance industry, these include high-risk occupations and low-risk occupations. 

Lowest Risk Occupations

Several insurance providers will offer low-risk job discounts. Low-risk occupation examples include scientists, teachers, accountants, clerks, and military officers as well as some other occupations.

Highest Risk Occupations

Some high-risk occupations according to car insurance providers are:

  • Police Officers
  • Journalists
  • Pub Landlord
  • Bar Owner
  • Market Trader

Does Unemployment Affect Car Insurance?

Yes, unemployment can affect your car insurance policy. When you are no longer driving to and from work on a daily basis it can greatly reduce your annual mileage, lowering your insurance premium. However many insurers may consider unemployed individuals as more of a risk of making an insurance claim. 

Do You Have to Tell Car Insurance if You Change Jobs?


Yes, you must advise your insurance provider of any changes that may affect your car insurance policy. 

Why Does Your Occupation Affect Your Car Insurance Rate?

Some insurers observe your occupation and assess the risk level according to what you do for a living. Certain occupations reduce the time a driver is on the road, therefore reducing the risk to insurers. Some occupations such as pilots, scientists, teachers, actors, and artists do not spend a lot of time on the road. Less time driving equals lower insurance premiums. In general, insurance companies view teachers and scientists as safer drivers and are less apt to drive in a risky manner. Some occupations require drivers to be on the road for several hours a day which would ultimately increase the risk to insurance providers. Many insurance providers compile data on occupational driving trends. This is another factor they use to assess an individual’s risk to the company. 

What Are Some Occupations That Insurers May Deem As A Higher Risk?


There are a few occupations that insurance providers may deem as high-risk when determining what your annual premium will be. Some of these occupations include:

  • Drivers
  • Professional Entertainers
  • Professional Athletes
  • Licensed Trade Professionals
  • Armed Forces Members
  • Scrap Metal Dealers
  • Off-Shore Workers

Using Your Personal Vehicle For Commercial Use

Some occupations require drivers to use their personal vehicles to fulfill their job responsibilities. Examples of these types of occupations include realtors, purchasing and sales agents, fast-food delivery drivers, scrap metal dealers, and many others. The frequency a driver is on the road can directly affect car insurance premiums. The more often a driver is on the road, the higher the risk the driver is to insurance companies, therefore premiums will be higher. When you are using your personal vehicle in the line of duty, you must always inform your insurance provider, failing to do so can invalidate your insurance policy. Insurance companies research and compare statistical data related to occupations to assess the likelihood of the driver becoming involved in an accident. Occupations that require drivers to be on the road more often will see higher car insurance premiums. Occupational assessments include location, travel patterns, statistics, and behavior. 

Occupational Factors That Can Impact Your Car Insurance

When insurers are assessing your occupational risk factors they take several employment factors into consideration. Some of these factors include:

  • Level of stress occupation places on an individual.
  • Amount of job-related travel.
  • Occupational safety training involves the safety of others.
  • Use of public transport as part of the occupation
  • Potential of possible distractions 

There are certain occupations that insurers consider a lower risk when assessing job-related risk factors pertaining to car insurance. These occupations include:

  • Pilots
  • Actors
  • Scientists
  • Police Officers
  • Nurses
  • Artists
  • School Teachers

Individuals employed in these fields are required to pay attention to detail, which is a huge factor for safe driving habits. However, there is several professions insurance providers view as high-risk professions such as:

  • Salesmen
  • Doctors
  • Executives
  • Lawyers
  • Builders
  • Architects
  • Social Workers
  • Business Owners

These types of professions typically involve high-stress situations and require individuals to work long hours which may affect their driving abilities. Due to sleep deprivation, doctors have almost the same accident rates as teen drivers. 

How Do Car Insurers Feel About Unemployed Individuals?

risk reward

There are different ways insurance companies assess unemployed individuals when pertaining to car insurance. Car insurance companies may view an unemployed individual as a higher risk of not maintaining their vehicles and not making insurance premium payments due to their financial situation. Unemployed individuals may pose a higher credit risk. Unemployed individuals may also be at a higher risk of making false insurance claims. However, depending on the insurance provider and the relationship you have with them, unemployment can sometimes work in your favor when it comes to insurance premiums. If you have always maintained a good driving record and paid your premiums on time showing your insurance provider you are a responsible individual, your premiums may be reduced to reflect the reduction in driving time on the road. Keep in mind it is not only what you do for a living or a fact of being unemployed that plays a role in determining what your annual premiums will be, many factors are taken into consideration by insurance providers when determining your premiums such as age, driving experience and history, where you live, the purpose for driving and other factors. 

Always Shop Around To Obtain The Best Car Insurance Rates and Coverage

Regardless of your circumstances surrounding the need for car insurance, it is always recommended to shop around to ensure you are receiving the best possible insurance rate and the appropriate coverage for your situation. Shopping online for car insurance is a fast, convenient and economical way to obtain many quotes.

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