Why Do Some Occupations Pay More For Auto Insurance?
by James Robinson
Is it really true that some people can get a cheaper auto insurance rate simply based on their job? What is the relationship between your occupation and your auto insurance rates? Is it fair for auto insurance companies to charge higher premiums to those people who work in certain "higher risk" occupations? These are all important questions for everyone to ask, especially those who are working as many people do not realize that their occupation is one of the factors that many insurance companies use to determine their auto insurance rates.
The world of occupations is a very broad one. Not only do occupations label who you are and what you do for a living, but now they have a lot to do with how much you are going to pay in the insurance business. Life insurance is a major example of this type of occupational division. High risk occupations such as construction workers, miners and some other professions in which the person is at risk of death and injury result in more expensive premiums compared to those in which the person is sitting behind a desk the whole day. Many people do not think that this is the job of auto insurance, but it is my job to let them know they are highly mistaken. There are certain occupations that draw a major degree of attention to auto insurance companies, while some others do now really represent a high risk for auto insurance companies. Below you will be able to see where your occupation ranks and whether it works in your advantage or against you at the time of trying to get auto insurance.
Based on the 2006 occupation report given by Comparisonmarket the following are the 63 occupations starting with the cheapest one to get auto insurance for and ending with the most expensive one.
01 Scientist $870.20
02 Retired $917.63
03 Currently not working $934.10
04 Pilot/Navigator $965.94
05 Disabled $968.14
06 Actor/Performer/Artist $971.10
07 Librarian/Historian $1,008.86
08 Farmer $1,015.62
09 Student $1,028.96
10 Public Official $1,068.83
11 Design Services $1,070.87
12 Waiter/Bartender/Host $1,071.25
13 Engineer $1,087.56
14 Athlete $1,088.29
15 Homemaker $1,091.73
16 Instructor/Coach/TA $1,098.86
17 Breeder/Groomer/Trainer $1,102.83
18 Clerk/Cashier $1,105.93
19 Computer/Math/Research $1,110.15
20 Chef/Baker $1,114.89
21 Teacher/Dean/Educ Degree $1,121.15
22 Machine Operator $1,126.34
23 Architect $1,130.71
24 Machinist/Toolmaker $1,131.33
25 Marketing/Advertising $1,135.33
26 Cleaning/Janitorial $1,136.02
27 Mechanic $1,138.33
28 Repair/Maintenance $1,142.89
29 Null $1,146.46
30 Military Officer $1,147.96
31 Tradesman/Manufacturer $1,150.80
32 Customer Service $1,151.92
33 Other - Prof w/Coll Degree $1,156.33
34 Construction/Skilled Worker $1,159.93
35 Technician $1,160.09
36 Other - No College Degree $1,181.74
37 Bank/Clerical/Office Staff $1,190.75
38 Nanny/Caretaker $1,193.97
39 Military E5+ $1,196.27
40 Admin. Asst./Secretary $1,209.26
41 Clergy $1,209.72
42 Driver $1,209.94
43 Health Care Worker $1,212.75
44 Finance/Ins Prof w/Degree $1,213.17
45 Barber/Beautician $1,214.47
46 Sales/Real Estate $1,215.04
47 Government GS1-GS5 $1,215.50
48 Self Employed $1,217.59
49 Professional Worker $1,219.49
50 Security/Prison Worker $1,227.74
51 Administrator $1,229.80
52 Supervisor/Asst. Manager $1,231.67
53 Manager/Director $1,240.14
54 Government GS6 or higher $1,262.45
55 Police/Fire - other $1,264.62
56 Medical Doctor/Dentist $1,277.63
57 Military E1 to E4 $1,294.69
58 CPA/Comptroller $1,301.36
59 Police/Fire - Lt/Cptn/Chief $1,314.88
60 Nurse $1,316.40
61 Attorney/Lawyer/Judge $1,370.39
62 Executive $1,375.38
63 Business Owner $1,405.11
There is a good explanation for each of the following occupations and why they rank in the top or the bottom of the table. Let's start with the top and why scientists, retired people and pilots or navigators rank up there. When you are a scientist your significant research is done in the home or at a company that pays you to be meticulous and find valuable information. This people often take those careful practices that they learn from work and use them on the road. Scientists are thought to be careful individuals that think things twice and always pay full attention at the actions that they are doing. For this reason they tend to be better drivers out there than many other occupations and because of these reasons they average premium is right at $870 a month.
After this comes the retired person with a premium of about $917 a month. Retired people don't do much throughout the day and many of them stay at home watching TV or doing things to their house. Sometimes they decide to go out and drive to the grocery store and other places, the places they travel to however; are short distances, hence there is a lower probability that these people will get into an automobile accident when they do drive. It is good to note that many retired people do drive a lot, but these is an average of all the retired people and since there are a lot of what we call "baby boomers" in our population, the majority of retired people follow the pattern described above.
Pilots and Navigators are fourth on the list with an average premium of $965, which is relatively low in comparison to other professions. Auto insurance companies see this people are responsible individuals that are good at what they do. These people usually have the lives of other human being in their hands and that usually translates to the road. When these people drive they are thought to do it cautiously and defensively and many of them usually take the same actions that they do at work, making them great at driving and very defensive behind the wheel.
On the other side of the table we see attorneys, lawyers and judges with an average monthly premium of $1,370. A big reason for the change can be due to the fact that these people purchase more expensive vehicles than the three occupations we have discussed above. Since most of these people are still making payments on the car or they are leasing it, they find themselves with a full coverage policy, which can be very expensive. Their cars are usually harder to fix and they require more expensive parts and labor, for this reason insurance companies try to make up for the "risk" by giving them more expensive policies.
Second to last we see executives who pay about $1,375 for auto insurance a month. There people also purchase expensive cars that are harder and more expensive to fix, but you have to add another detail. Executives are constantly on the phone with people all around the country and the world. For this reason they are more likely to be paying attention to their cell phones while driving, which has been proven to be one of the major causes of accidents in the United States. Because of this little thing called cell phone, executives face one of the most expensive monthly premiums of any occupation.
Last but not least we find ourselves with the most expensive occupation to insure by an auto insurance company, the business owners. With an average monthly premium of a staggering $1,405, the business owners have the highest rate out of any profession. The reason for this is that these people live a very stressful life. Trying to keep their main source of a job operating correctly can take a toll on this people and the more stress you drive under; the higher your chances of making mistakes out on the road. Add to this that they spend countless hours on the road and that some of them use their cars for business purposes; and you will be facing the most expensive premium out there.
As you can see your occupation has a lot to do with the way that you are perceived to an automobile company. Unfortunately for people that fall in one of the expensive categories and that are good drivers, they will always be seen as part of the group in which they work. Occupations have a lot to do with who you are and what you are seen like, and now you can see that your profession goes farther than that because is not being use to determine your automobile rates!
Jul 3, 2008
Why Do Some Occupations Pay More For Auto Insurance?
