You may feel like you’re a safe driver, regardless of your job, but because insurers don’t know you, all they have to do is hard data showing that people in certain occupations are more likely to file a claim . or make more expensive claims. that’s fine if you’re in a “secure” job, less so if you’re not.
but what can you do?
How do auto insurers calculate their quotes?
Your title, trade, profession or occupation can be crucial when getting an auto insurance quote. It doesn’t matter if you use your car for work. what you do for a living gives the insurer a lot of information about you and how you might drive.
Your job isn’t the only factor. Other factors that influence your auto insurance premium include:
There are many other ranking factors used by different insurers, but don’t underestimate the importance they place on your occupation.
what is the link between work, driving and auto insurance?
There is no qualifying list of car insurance occupations in the UK. each insurer makes its own decision based on its prior claims experience and its appetite for certain risks. but what you do for a living tells the insurer a lot about you.
Insurers store all the details of past claims in huge databases, which are used to define various elements of risk, such as which jobs, driving choices, and cars lead to more insurance payouts. Certain jobs, especially if combined with certain types or models of cars, are shown to lead to higher claims.
Delivery drivers and construction workers often pay more for their auto insurance because they tend to drive a lot and are often in a hurry. A personal assistant or secretary, on the other hand, is generally considered lower risk and their premiums are cheaper.
Knowing someone’s job and occupation allows insurers to infer other things about that person. We all do this in our daily lives. As long as we base assumptions on evidence and not bias, we can often be right. insurers are no different.
what are the auto insurance occupancy categories?
There is no longer an official list of auto insurance job titles. Anyone who started paying for insurance more than two decades ago may remember that insurance rates were calculated by reference to a printed card.
That way, I could see what jobs insurers loved and hated.
jobs that insurers liked would be at standard rates and anything else would attract a higher charge. a high official, for example, charged standard rates. a circus acrobat attracted more, perhaps because they drove at night, after shows and when they were tired.
what is the best job to buy car insurance now?
Nowadays, calculating the risks of each job, trade and profession is more complex. In some cases, insurers dislike certain occupations so much that they refuse to quote or offer a higher price that discourages applications.
There could be all sorts of reasons for this. insurers like to spread their risks. they may have hit their target for that job, zip code, or car type, so adjust your prices to avoid having a concentration of customers with similar risk profiles.
Insurers don’t want to insure every car on a street. If a truck hits cars, or a water pipe bursts and damages cars on both sides of the street, or a vandal scratches the keys off a row of cars, an insurer that covered all the cars would pay out a fortune all at once.
Insurers make the same decisions about certain types of work and workers. they may not want to insure anyone with a particular job, or they may feel that they are already insured enough for a type of occupation, so they should be discouraged by higher prices.