When it comes to car insurance rates, your occupation can have a significant impact. Insurance companies will consider your job when determining your risk profile, which then influences your insurance premiums. Certain professions are seen as lower risk and tend to get the cheapest car insurance rates. So what jobs tend to have the cheapest car insurance? Here’s a look at some of the best occupations for lower auto insurance premiums.
Jobs with Lower Insurance Rates
In general, jobs that require higher education levels and professional skills tend to qualify for cheaper car insurance. Here are some of the top jobs to consider if you want lower premiums:
- Scientists and researchers
- Engineers
- Lawyers
- Accountants
- Professors and teachers
- Doctors and physicians
- Nurses
- Architects
- Computer programmers and IT professionals
- Therapists and social workers
- Office administrators
- Artists and designers
Insurance companies assume these professionals tend to be more responsible, educated, and exhibit lower risk-taking behaviors. Additionally, many of these occupations require graduate or post-graduate degrees, which insurers correlate with financial stability and cautious driving habits.
Why do these jobs get cheaper rates?
There are a few key reasons why the jobs above tend to receive lower car insurance rates:
- Higher income levels – Jobs like doctors, lawyers, and engineers have higher average salaries. Insurers believe higher incomes mean you can more easily afford insurance premiums and out-of-pocket repair costs in the event of an accident.
- Advanced education – Many of these occupations require graduate or professional degrees. Insurance companies believe higher levels of education leads to more responsible behavior, including cautious driving.
- Office-settings – Jobs based in offices or hospitals mean you likely commute less than average. Less time on the road means lower accident risk.
- Older drivers – Many of these professions require years of schooling and experience. This correlates with older drivers, who statistically have fewer accidents.
Additionally, those with professional careers may be more motivated to maintain a good driving record. A DUI or multiple traffic violations can negatively impact their career. This further incentivizes safe driving habits.
How much can you save?
Just how much can having a favorable occupation save you on car insurance? Here are some averages to give you an idea:
| Occupation | Average Annual Premium |
|---|---|
| Teacher | $1,200 |
| Engineer | $1,100 |
| Scientist | $1,050 |
| Lawyer | $1,000 |
| Doctor | $950 |
| Nurse | $1,150 |
| Architect | $1,050 |
As you can see, certain professions like doctors and lawyers save hundreds of dollars per year compared to the average annual premium of around $1,400. While not everyone can be a doctor or lawyer, choosing a stable professional career path can benefit you when it comes to car insurance rates.
Other factors impacting car insurance rates
While your occupation has an influence, it’s important to note there are other big factors determining your insurance premiums including:
- Driving and credit history – Insurers closely examine your past auto accidents, traffic violations, and credit scores.
- Location – Where you live significantly impacts rates, with urban areas costing more.
- Car make and model – Premiums are higher for sports cars and luxury vehicles deemed high-risk.
- Coverage limits – Higher liability and collision coverage limits mean higher overall premiums.
- Age and gender – Young drivers and males generally pay more for coverage.
- Marital status – Married couples often receive discounts for being perceived as more stable.
- Annual mileage – The more miles you drive, the greater your risk exposure.
While you have little control over some factors like age and location, focusing on maintaining a clean driving record, choosing an affordable vehicle, and limiting mileage can also help lower your rates. Comparing quotes between insurers is important as well, as premiums can vary widely between companies.
Tips for lowering car insurance costs
Beyond pursuing a favorable occupation, here are some other tips to lower your car insurance costs:
- Ask about discounts – Inquire about possible discounts for good driving, good credit, multiple policies, and safety features.
- Raise deductibles – Opting for higher deductibles like $500 or $1,000 can substantially reduce premiums.
- Drop unnecessary coverage – Re-evaluate components like rental reimbursement or roadside assistance if you don’t need them.
- Improve credit – Maintaining good credit scores not only helps qualify for financing, but insurers also correlate credit health with responsible driving.
- Take a defensive driving course – Completing an approved driving safety course can make you eligible for discounted rates.
- Limit monthly payment options – Paying premiums in-full rather than month-to-month saves on financing fees.
- Shop around – Compare quotes from at least 3-5 different insurance providers to find the best rate.
Taking steps like these can lead to significant savings on your auto insurance premiums each year.
Frequently Asked Questions
Do insurance companies offer discounts for certain occupations?
Yes, many insurers offer special occupational discounts. For example, teachers, firefighters, police officers, and nurses may receive a 5-15% discount. Ask your provider about any professional or affinity group discounts available.
How much impact does my job really have on car insurance rates?
While not the only factor, your career can have a notable impact. Those with favorable professions may save hundreds per year compared to higher risk jobs. However, driving history and location also play a big role in determining premiums.
Can I lie about my occupation to get cheaper insurance?
No, you should never provide false information on an insurance application. This is considered fraud and can invalidate your policy. Insurers may also uncover your actual occupation through employment verification.
If I change jobs, do I need to notify my auto insurer?
Yes, you should inform your provider if you change employers, especially if it is to a significantly higher or lower risk occupation. This allows your insurer to re-evaluate your rates based on your new job.
The Bottom Line
Your career can have a clear impact on what you pay for car insurance coverage. Jobs requiring advanced education and professional skillsets often qualify for the cheapest rates. Besides your occupation, maintain good driving habits, choose affordable coverage limits, and compare rates regularly to find the best auto insurance deal.