Though it’s probably not something you think about when you choose a career, your job can have an impact on your auto insurance rates. There are a number of factors related to your job that can change how much you pay for car insurance. Here are some of those items.
Daily Commute Patterns
One of the initial questions that your car insurance agent will ask you when you purchase your policy is how far you must commute daily to get to work and/or school. Car insurance rates can be impacted by your job if it requires a longer daily commute than a previous job. A portion of your car insurance premium is calculated based on the annual miles driven so a long daily commute (over fifty miles) can significantly increase your car insurance rate.
Car insurance companies do consider the type of job you have when calculating the level of risk to insure you as a driver. A 2006 comparison report of occupations by amount of annual premium provided insight into how jobs can affect your insurance rate. According to the report, scientists are considered less risk, because they are meticulous and pay attention to detail by nature, which typically translates into safer driving habits. In addition, bus drivers and other jobs in which the driver’s career could be restricted or eliminated for negative driving events will typically pay lower rates.
If your job requires you to travel for work related activities throughout the day, for example to conduct home visits or travel to multiple job sites, it can affect your car insurance rates as it increases daily mileage. Car insurance companies also know that people in stressful jobs that require car travel in excess of a normal commute, such as lawyers, judges, executives, sales or real estate agents, will spend more time in the car and in most cases will spend more time talking on a cell phone while driving, both of which can increase the risk of an accident, so these occupations may cost you more.
Transport of Materials or Passengers
Car insurance agents ask a series of questions when you purchase your policy to determine how you will use your car to be sure that you are getting accurate coverage. Your job can impact your car insurance rates if you are required to transport any work related materials and supplies or passengers in your personal vehicle because you will need to purchase additional coverage for damages in the event of accident. In some cases, discount insurance companies do not cover vehicles used for transport of business materials or passengers so be sure to check this with your company.
Employer Medical Benefits
One thing related to your job that can impact your car insurance rates that most people don’t consider is the amount of medical benefits provided by your employer. Car insurance coverage to pay for medical expenses in the event of an accident is separated into different categories. This means that if you have good medical coverage through your employer for yourself and your family, you may not need to purchase additional medical coverage for yourself through your insurance policy which will result in a lower annual premium.
Although how your job affects your car insurance rate is not a specific formula, understanding what factors insurance companies consider when calculating the risk to insure you as a driver can help explain the impact. The insurance industry is a risk based business and so insurance companies must consider all factors related to your job and personal life to determine the level of risk involved and therefore the amount of your premium.
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