How Does One's Occupation Affect Their Yearly Car Insurance Premium?

There are several different variables that are taken into consideration by insurance companies when they give you a car or life insurance quote. Some of them one has no control over, such as their age. Other factors such as one's occupation is something that is under everyone's control, and can lead either to a higher or lower car insurance premium. So how and why does one's occupation affect the amount one pays for their car insurance?

How one's occupation affects their insurance
One's occupation can have a direct affect on the amount of one's yearly car insurance premium because that amount one pays is directly based on the level of risk to the company of making a payout. Those who are more likely to get a payout will be the ones who pay more, while others who are less likely to receive an insurance payout will pay less. Be it car insurance or life insurance, one pays for a benefit that they do not necessarily want to happen (who wants to be in a car accident or to pass away?). Those who are in a field that puts them at higher risk of getting into a car accident or have dangerous jobs that could result in the loss of their life will pay more for their care insurance and life insurance policies.

Occupations that have higher insurance rates
A few occupations that could put one into higher risk of getting into a car accident are executives, salespeople, and small business owners. These people tend to be both in their car and on their cell phones more than people in other occupations, and will typically be doing both at the same time. It is no secret that any distraction while driving can lead to an accident, and because of this they will end up paying more for their insurance. Life insurance works in a similar way. People who have occupations and lifestyles that put them at a greater risk of injury and death will pay more than those who do not juggle knives or teach skydiving for a living.

Occupations that have lower insurance rates
Likewise people whose professions either count on them to pay more attention, or keep them off of the road can lead to lower car insurance premiums. For example a pilot will typically have a lower car insurance rate because they are a professional whose line of work depends on their navigating expertise. If a pilot were to get a DUI they would not only be likely to lose their job, they would most certainly lose their piloting license and ability to get another job altogether. The unemployed and the elderly are more likely to have a reduction in their auto insurance premium because they do not have to commute to work every day and are thus less likely to be involved in a car accident.

It's not completely out of one's control
The next time one applies for a job, one thing that they should consider is how their new job will affect not only their car insurance, but life insurance as well. The ultimate choice of accepting or rejecting a job offer shouldn't be based off of whether it will cause their car insurance premium to go up or down, however it should be taken into account when factoring in the amount of pay you will receive - especially if one is living on a budget. Two jobs that are offering identical pay packages may come with different hidden costs when it comes time to renew your auto or life insurance policies. By knowing and understanding how car insurance companies calculate your annual premium, you can make a well informed decision.