How Much Does Your Job Title Impact Your Auto Insurance Price?

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Multiple variables, such as the policyholder’s age, location, and occupation, influence the auto insurance price. This in-depth correlation analysis between employment and insurance premiums determines which professions have the least and most costly auto insurance rates. Read full article to know how changing your job titles could lower auto insurance price.

Assuming you have good credit, why does your employment affect your auto insurance price?

Your occupation and work status are two of the many aspects that insurers look at when determining your car insurance quote. Insurers use past claim information to predict which occupations pose the most significant risk when issuing auto insurance quotes; if you happen to be employed in one of these high-risk occupations, you may expect to pay more for your policy.

The auto insurance price may be influenced by various factors related to your occupation, some of which we include below.

  • Some professions, such as those in the trades, necessitate car use and may require the driver to log a significant number of kilometers every day. This would raise the potential for a claim and the associated premium. Furthermore, many jobs require employees to transport costly items or equipment a thief could target.
  • Having a job that requires you to be awake at odd hours (like the entertainment business) might raise your premiums, as can leaving your car unattended in a dangerous area late at night. One prominent example would be cars parked in front of bars and nightclubs.

Who Can Get Auto Insurance Discounts?

Discounts for safe driving, good grades in school, becoming a homeowner, and not having any accidents are standard perks offered by insurance companies. Most people are unaware that persons with special education or employment experience may be eligible for further discounts, and they may be pleasantly surprised to learn this.

When requesting a car insurance quote, most people probably wouldn’t consider the listed occupation. Yes, depending on the low cost car insurance company you choose, your work title could affect the cost of your automobile insurance rate. The premium you pay for insurance from some firms could be reduced if you qualify because of your line of work.

One corporation may charge its CEO less than its receptionist because the CEO is considered more safety-conscious and attentive behind the wheel. If another insurance company believes the CEO will be on the road more frequently, they may charge them more. Perhaps your perspective will shift after reading this.

The cost of your car insurance may go down if you change your job title

If you want to see how different job titles affect your automobile insurance rates, keep in mind that the occupation you list must accurately reflect your actual work. For instance, you may discover that hiring a “proofreader” is safer than hiring an “editor.” It’s possible that a “legal secretary” would earn less than a “law clerk,” but a “cafe worker” could be preferable to a “kitchen worker.”

However, if you deviate too far from your actual occupation, you may be guilty of fraud, lose your vehicle insurance, and perhaps go to jail.

Should you notify your insurance company if you have a new job?

If you switch careers, you must notify your insurance company. Your occupation is another potential risk factor in determining your auto insurance price, your geographic location, and the vehicle you drive.

The insurance policy may become null and void if you fail to notify the company.

Would being unemployed make a difference in the cost of auto insurance?

Your affordable auto insurance premiums might go up if you were unemployed.

According to a study by the BBC, unemployed drivers face insurance rate increases of up to 63%.

According to the Association of British Insurers, actuarial research supports the argument that unemployment is a risk factor for insurers.

Some of the following theories may explain higher risk perception:

The unemployed are less likely to take care of their automobiles, which could lead to an increase in claims, and yet they are more likely to use their cars to get around while they search for work.

Discounts May Be Available to You Based On Your Profession

Some professions qualify for insurance reductions. Medical physicians, lab technicians, nurses, dental technicians, x-ray technicians, hospital administrators, veterinarians,  dentists, pharmacists, and occupational and physical therapists all receive a 6% discount from the insurance company Selective.

Certified educators are another group that can benefit from this price cut. Professionals in this category include classroom educators, librarians, guidance counselors, principals, college professors, and athletic directors.


If you were to get a quote for the same person from a different insurance company but changed nothing else about them save their level of education or profession, you would likely see a significant variation in premiums.

Even though Progressive does not offer a discount based on your line of work, you will still be asked to disclose your most considerable level of education and your profession when requesting a quote. Your answers to these questions determine your premium; obviously, a higher education level will result in a lower auto insurance price.