How Your Occupation Affects Your Car Insurance Rates

Did you know that your occupation could affect your car insurance rates? If you didn’t, you aren’t alone. The fact that your occupation can affect your rates is not widely known. It can be difficult to understand how different occupations can make a difference when it comes to auto insurance.

When you enter any insurance site for a quote, you are immediately asked for your zip code. At this point, hundreds of filters are just waiting for your information. How often you drive, what type of car you drive, past accidents and yes, even your occupation, will determine the rate the website spits back at you.

Here are a few examples of how your occupation will come into play:

If you are self-employed, you may or may not find that your premiums increase. The fact that you are self-employed itself makes little difference; it’s what you do for a living that will make your premiums go up or down. For instance, if your business is done almost solely from your home office, your insurance rates may go down. If, however, your business involves traveling, making deliveries or running frequent errands, your premiums will probably go up.

Remember that if you are driving for your business, your business is liable for any resultant damage that occurs from an accident. Because of this, it is very important to be honest with your personal insurance carrier. He or she may suggest that you consider purchasing commercial car insurance. If you use your car for business more often than you use it for personal reasons, a commercial policy may be in your best interest.

Delivery Drivers
If you work for a restaurant, flower shop or delivery service, and use your own car, your premiums will be higher than average. According to insurance companies, these people spend a better than average amount of time driving their vehicles and are under a high amount of stress to get to their destination on time.

Likewise, those with high-stress jobs are considered at higher risk for accidents. Because the determination has been made that people in these types of occupations are more likely to be involved in an accident, the premiums for people in these occupations are higher.

Who gets the lower rates?
Now that you know who can expect to receive higher insurance premiums, you may be interested to know who will receive lower premiums. This list includes: the unemployed, the retired, pilots, scientists, librarians and the disabled. People in these groups receive lower premiums for one of two reasons: they drive less or they are involved in low-stress jobs, as determined by insurance companies.

Knowing this information can quickly lead one to feel as though the insurance industry is being judgmental and discriminatory. If you feel this way, you’re part of a large group of disgruntled consumers. Unfortunately, this type of broad stroke coverage has been deemed legal. As long as rates are being charged based on clear, statistical evidence, insurers are able to get around discrimination laws.

What can you do?
Unfortunately, unless you want to change occupations strictly to save a few hundred dollars a year, there isn’t much that you can do. Do remember, though, that you aren’t tied into your current insurance company. You are free to switch policies, and companies, at any time. Visit different sites and look for quotes from various agencies.

If you work from home, keep a mileage log. While you may be stuck paying “average” premiums at first, providing your agent with a mileage log may cause your premiums to drop when it comes time to sign your new policy. You can also contact your insurance agent and ask for any discounts that you may qualify for to offset the cost of your premiums.

It’s important that you know the different factors that affect your car insurance rates. If you think you are paying too much, shop around. You may just find a better rate with another company.

Author Sandy Landsford is an accountant and blogs for, a site where you can get cheap car insurance. Get a quote today!

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