Does your job affect auto insurance rates? (Everything You Should Know in 2024)
A job does affect auto insurance rates since drivers with long commutes pay around $7/mo more for their coverage. Below, we'll overview how distance from work affects insurance rates, how employment status affects car insurance, and what occupations offer cheap car insurance coverage.
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Brandon Frady
Licensed Insurance Producer
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Producer
UPDATED: Nov 1, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 1, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Does occupation affect car insurance rates? A job affects auto insurance rates since insurance companies consider annual mileage and even the stress level of your job, which affects driving habits.
However, insurers consider many other factors, such as age, driving record, and gender. Read on if you’re interested in learning how your job can affect your insurance and how to get cheap auto insurance rates for your occupation.
You can also enter your ZIP code into our free quote tool above to compare occupation car insurance rates from top providers near you.
- Occupation impacts car insurance due to vehicle usage and stress level
- Annual mileage will impact how much you pay for car insurance
- Insurers offer various occupational discounts for cheaper rates
How Your Occupation Affects Auto Insurance Rates
Does employment status affect car insurance? Insurance companies will ask for your car insurance occupation when you’re applying for coverage. They might even ask about the highest level of education that you’ve completed.
Both of the answers that you give can increase or lower your auto insurance premiums. In fact, the best auto insurance companies have found that there’s a direct correlation between education and claims.
So how does a job affect car insurance? Both your occupation and education are used together to determine how much you’ll pay.
Professionals in skilled positions and executives who have completed college tend to pay less for insurance than entry-level or blue-collar workers who have only a high school diploma. The table below shows car insurance by profession.
Average Rates for the 20 Most Common Occupations
| Occupation | Average Rates |
|---|---|
| Retail Salesperson | $1,200 |
| Cashier | $1,150 |
| Office Clerk | $1,250 |
| Food Prep Worker | $1,180 |
| Registered Nurse | $1,300 |
| Customer Service Rep | $1,210 |
| Laborer | $1,270 |
| Stock Clerk | $1,240 |
| Janitor | $1,220 |
| Bookkeeper | $1,260 |
| Maintenance Worker | 1230 |
| Teacher | $1,320 |
| Truck Driver | $1,280 |
| Sales Rep | $1,290 |
| Nursing Assistant | $1,240 |
| Construction Worker | $1,310 |
| Security Guard | $1,200 |
| Personal Care Aide | $1,220 |
| Secretary | $1,250 |
| Software Developer | $1,400 |
The Consumer Federation of America has done an analysis to show that most major insurers charge their clients with less education and a lower status job higher rates.
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Best Jobs for Cheap Car Insurance
Does your job affect car insurance? Insurance premiums are calculated by analyzing the risk class, including car insurance employment status. In the industry, state officials in charge of regulating the insurance industry prohibit the use of factors that are discriminatory in nature and that have no relation to risk.
Some of those factors include the policyholders:
- Income
- National origin
- Religion
So, how does income affect car insurance? While income can’t be considered when calculating your rates, the title that you hold can. What you do on a regular basis can affect how likely you are to be exposed to an accident and how likely you are to file a claim.
So, what is the best occupation for cheap car insurance? Teachers, nurses, pilot, and police offices have the cheapest profession for car insurance.
Read More:
- Cheap Auto Insurance for Teachers
- Best Auto Insurance for Nurses
- Best Auto Insurance for Law Enforcement
These low risk car insurance occupations pay less than other professionals because they must pay attention to details and are less likely to get into an accident.
Car insurance high risk occupations include doctors, athletes, and photographers who tend to pay higher rates because they work in more chaotic environments (Read More: Best Auto Insurance for Doctors).
Some Professionals May Have to Buy Business Auto Insurance
If you’re driving your personal vehicle to conduct business, there’s a chance that you won’t qualify for a personal policy.
It’s important that you can distinguish between personal car insurance policies and business car insurance policies if you drive a vehicle with commercial equipment or if you drive your vehicle for business purposes.
In most cases, if you drive your personal car to job sites or to deliver consumer goods, you can buy personal car insurance. If your car is in your business name or your employees drive it around, you'll need business insurance.Michael Vereecke Commercial Lines Coverage Specialist
You also need a commercial auto insurance policy if there’s any permanent commercial equipment installed in the car. Keep this in mind as you’re shopping around.
Your job can directly affect your premiums, but the indirect effect could be even worse. If you go from being unemployed to employed, you need to make changes to your policy so that your policy is rated right. How you use your vehicle can have a dramatic effect on your rates because users can leave you more exposed to loss.
Individuals who work from home, are retired, or are unemployed will be rated as pleasure drivers. This is the lowest rated usage classification because you’re not driving during peak hours when there are traffic jams. Commuters and business drivers pay higher rates because they go to and from offices during high-traffic times.
If you commute to and from work, how much your rates will go up depends on a few different factors. First, the insurance company will ask you how many days per week you work. Next, the company will ask you how many miles you drive to and from work daily.
These answers will be used to determine how many commuting miles you’re driving annually.
How Annual Mileage Affects Rates
Does annual mileage affect auto insurance rates? Your commuting miles and your annual miles are two different numbers. If you have a long commute, especially if you live in one of the areas with the most expensive commutes, it could affect your chances of qualifying for mileage discounts. Insurance companies have their own car insurance occupation ratings that carry different rates.
You can fall into average, high, or low mileage groups. To be considered a low mileage driver you need to drive less than 5,000 miles per year.
Auto insurance policyholders who drive between 5,000 and 12,000 miles per year typically pay average rates. Drivers who exceed the average of 12,000 miles per year will pay a high mileage surcharge. Carpooling can keep your mileage down.
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Car Insurance and Occupation: Understanding The Relationship
A top question readers ask is, “Does your occupation affect car insurance?” Car insurance rates by occupation vary, and some of the effects are more direct than others. You should always compare auto insurance rates whenever you’re trying to find a good deal.
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To find the cheapest jobs for car insurance, enter your ZIP code into our free quote comparison tool to instantly buy cheap insurance from the top providers near you.
Frequently Asked Questions
Does employment affect car insurance?
So, does being employed affect car insurance? Yes, occupation impacts car insurance for retired or unemployed drivers. Insurance companies consider factors such as your occupation, education level, and driving habits when determining your premiums.
Does being unemployed affect your car insurance?
Does being unemployed affect car insurance? Unemployment status doesn’t affect your car insurance rates. However, you can find cheap auto insurance when unemployed from Erie, Geico, and State Farm.
Read More:
Which occupations carry less risk?
You may also be wondering, “What occupation makes car insurance cheaper?” Some occupations are considered to carry less risk than others when it comes to auto insurance.
You can find the cheapest occupation for car insurance with jobs that involve attention to detail and have a lower likelihood of accidents, such as accountants, teachers, or engineers, part of several car insurance occupation categories.
Do some professionals need business auto insurance?
Yes, if you use your personal vehicle for business purposes, you may need to consider purchasing a business auto insurance policy. This is especially true if your vehicle is in your business name or if you regularly drive your vehicle to job sites or deliver consumer goods.
Does my job affect my insurance rates indirectly?
Yes, your occupation and car insurance rates can indirectly affect each other. Factors such as whether you are employed, unemployed, or retired can influence your rates. Individuals who work from home, are retired, or unemployed are often classified as pleasure drivers and may have lower insurance rates.
Does commuting increase car insurance?
Yes, your annual mileage can affect your insurance rates. Insurance companies consider both commuting miles and annual miles when determining premiums. If you have a long commute or high annual mileage, you may be at a higher risk of accidents and may not qualify for low-mileage auto insurance discounts.
Does your income affect auto insurance?
Your income shouldn’t have a direct impact on your car insurance premiums. However, low-income drivers may be more likely to purchase less coverage to save (Read More: Best Auto Insurance for Low-Income Drivers).
What occupation lowers car insurance?
Which occupation is cheapest for car insurance? Usually, the cheapest job for car insurance are jobs that don’t require much driving or have fewer risks. Some occupations for cheap car insurance include teachers, nurses, and accountants.
Why does occupation affect car insurance?
Why do car insurance companies ask for occupation? Occupation affects car insurance rates because some jobs are considered high risk due to irregular work or travel hours.
Why does car insurance need to know your occupation?
So, how does your job affect car insurance? Most insurers believe your job offers a glimpse into whether you’re a high-risk driver. For example, a truck driver might see higher rates because of the time they spend on the road.
Does being a student affect car insurance?
While being a student won’t directly affect your rates, young drivers usually have higher rates due to driving inexperience. Fortunately, many top providers offer discounts specifically for students, such as a good student auto insurance discount.
How does distance from work affect insurance rates?
If you’re wondering, “Does commuting increase car insurance rates?” the answer is yes. The longer you drive when commuting to work, the higher your rates will be.
Does retiring affect your car insurance?
We often get the question, “Is car insurance cheaper if you are retired?” It can affect your car insurance if retirement leads to reduced commute, which could lower premiums. However, some older drivers get charged higher rates due risks associated with age-related declines in vision and reaction time.
Is car insurance cheaper for student or employed worker?
How does employment status affect car insurance for students? Due to their job, car insurance rates for employed workers are usually lower.
What affects car insurance rates the most?
A top question readers ask is, “How does occupation affect car insurance?” Age, driving history, vehicle type, occupation, credit score, and annual mileage all get considered by best auto insurance companies when setting rates.
What determines the rate of your car insurance?
So, what factors affect car insurance rates? Insurers consider multiple variables, including your driving history, vehicle type, location, and coverage levels. Additionally, your profession plays a role, as insurers assess whether your job increases your risk of accidents or vehicle damage.
Will your profession affect your auto and life insurance premiums?
Yes, your profession can impact both auto and life insurance premiums. Jobs that involve a lot of driving or higher risk activities may lead to higher premiums, while lower-risk occupations, such as desk jobs, may result in lower rates.
Why does car insurance ask where you work?
Insurance companies ask about your job to better assess your risk level. If your work requires long commutes or driving in high-risk areas, it can increase the likelihood of an accident, affecting your premiums.
What are 4 factors that influence your auto insurance rates?
Several key factors affect auto insurance rates, including your profession. Insurance companies evaluate your overall risk, and your job can be part of that calculation. Here are four common factors that affect your rates:
- Driving Record: A history of accidents or violations can lead to higher premiums.
- Location: Living or working in high-traffic or high-crime areas may increase your rates.
- Occupation: Jobs requiring frequent driving or those in high-risk environments can raise your premiums.
- Vehicle Use: Using your car for business or commuting long distances impacts your insurance costs.
These factors, combined with others like age and vehicle type, help insurers determine your risk level and ultimately your premium.
What is the best occupation for car insurance?
Generally, car insurers view teachers, engineers, scientists, nurses, and government employees as low-risk, stable policyholders to insure.
Wondering what the lowest risk occupation for car insurance is? Enter your ZIP code into our free comparison tool below to compare the best occupation for car insurance quotes near you.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Brandon Frady
Licensed Insurance Producer
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.