Does Occupation Affect Car Insurance?
Although it may seem like it may have little to do with operating a motor vehicle, a motorist's occupation could have an effect on the price paid for automobile policies, both positively and negatively. Individuals of certain employment may be given a lower rate on auto insurance policies, and some people may have to pay a little extra for coverage, not because of their type of education, but due the distance between their place of work and home.Insurers charge policyholders based on risk associated with providing coverage, and certain individuals may qualify for what may be referred to as a low-risk occupation discount. According to studies and reports there are particular occupations that have a history of being involved in less accidents than others, and a person with such a profession may be able to find a company willing to offer auto insurance discounts as a result.
Many studies have shown that engineers are involved in the lowest number of accidents and may be to obtain more affordable car insurance due to the reduced risk that they pose to insurers. In addition, other occupations may lead to lower premiums such as being an educator, accountant or a current or retired member of the military. However, these discounts are not very common among carriers, but motorists are advised to ask while shopping around to help ensure that the best rate is found for coverage.
On the other hand, a person's job can have a negative effect on what is paid for automobile policies, not because of the type of occupation, but because of the distance between home and work. One of the rating factors that is commonly used among auto insurance companies is a policyholder's annual mileage; therefore, if a person must commute 100 miles per day to and from work, they could easily exceed 24,000 miles per year. If this is the case, a person will likely not qualify for a low-mileage discount and is likely to pay more than a person who averages 12,000 miles a year. The reasoning used behind this is quite cut and dry; if a person spends twice the amount of time on the road than another person, they are twice as likely to be involved in a traffic related incident.
Individuals who use their own automobiles to conduct business may also need double check their policies to ensure they are covered while operating their vehicle during business hours. For example, a pizza delivery person is usually not insured by a basic personal auto insurance policy and would not be compensated for a loss that took place while working; typically, a motorist would need to add additional coverage to insure against such losses. Unfortunately, there are many consumers who are unaware of these facts and use their vehicles for work and unknowingly drive uninsured. When taking on such a job, it may be wise to discuss coverage options with their insurer or agent.