Your profession not only puts food on the table but could also lead to savings on your car insurance premiums. That’s because insurance companies analyze claims data and have discovered that individuals in specific occupations tend to file fewer claims than others. Consequently, many insurers consider your educational background and job when determining your car insurance rates.
While some companies include these factors in their rating process without publicizing it, others openly advertise flat or percentage-rate discounts for customers with certain educational degrees or occupations. Insurers perceive these policyholders as lower risks and, consequently, offer lower rates.
Discounts on car insurance vary depending on the company and the state. Some insurers provide discounts for specific occupations in certain states but not others. Additionally, the scope of occupations eligible for discounts varies among insurers, as does the size of the discount. Learn about nine professions that can qualify for car insurance discounts.
- Car insurance companies consider drivers in certain occupations less risky, charging them a lower rate than other professions.
- Civil servants, doctors, engineers, farmers, firefighters, police officers, lawyers, scientists and teachers are among the professions that can save you at least 10% on auto insurance.
- Geico, State Farm, Nationwide and Travelers offer professional discounts to drivers.
What professions qualify for car insurance discounts?
Truth is, certain livelihoods will trigger a car insurance premium discount. Dennis Shirshikov, adjunct professor of economics at City University of New York, explains why.
“Occupational discounts and car insurance are a reflection of data-driven risk assessment models that insurance companies use,” he says. “Certain professions are associated with traits like reliability, stability and a lower likelihood of filing claims. That makes policyholders in these jobs less risky from an insurer’s perspective.”
Andy Chang, founder and CEO of The Credit Review, a financial services website, seconds those sentiments.
“Insurance companies approach their pricing based on vast actuarial data, including a differentiation by occupations in determining risk profiles,” Chang says. “Their rationale is simple: Certain professions present lower risks, which can trigger discounts since the likelihood of them filing a claim is significantly lower.”
CarInsurance.com recently gathered data on occupational discounts and found that particular vocations qualified for bigger discounts than others. These occupations include civil servants, doctors, engineers, farmers, firefighters, police officers, lawyers, scientists and teachers.
| Profession | Average Annual Cost |
|---|---|
| Civil Servant | $1,677 |
| Doctor | $1,699 |
| Engineer | $1,673 |
| Farmer | $1,674 |
| Fire Fighter | $1,656 |
| Law Enforcement | $1,688 |
| Lawyer | $1,677 |
| Scientist | $1,649 |
| Teacher | $1,678 |
Let’s break down the cheap car insurance occupation list and discounts for each.
Civil servant
Civil servants are people employed by the government in a range of administrative, executive or professional positions at local, state or federal levels. Their primary role involves serving the public by executing government policies, enforcing laws and delivering vital services to citizens. These individuals can work across various sectors like education, healthcare, law enforcement, social services and transportation.
Our research found that civil servants typically pay $1,677 a year for car insurance, representing a 12% discount and a $218 savings compared to an average before-discount premium of $1,895.
Doctor
“Professions like physicians are often associated with meticulousness and detail orientation, which can translate to safer driving habits,” Chang says.
We discovered that physicians garner a 10% discount on auto insurance costs, paying an average of $1,699 annually, which translates to a $196 decrease versus an average before-discount premium.
Engineer
Yet another job that can yield considerable savings on car insurance is an engineer.
“We’ve found that engineers, due to their meticulous attention to detail and systematic approach to problem-solving, tend to exhibit safer driving behaviors – making them less prone to accidents,” says John Crist, founder of Prestizia Insurance, a Dallas-based insurance agency.
Engineer insurance discounts can add up. Engineers commonly pay $1,673 for vehicle insurance premiums annually, a 12% savings ($222) over the before-discount average annual rate of $1,895.
Farmer
Likewise, the folks responsible for growing our food often qualify for car insurance premium reductions. Farmers, on average, pay 12% less: $1,674 for a 12-month policy, which equates to $221 less than the average before-discount bill.
Firefighter
The professional trained to save lives and property during a blaze is certainly deserving of our appreciation. Car insurance companies agree, providing firefighter car insurance discount opportunities. Firefighters can save 13%, or $239 average savings annually, which means they pay, on average, $1,656 annually for auto insurance.
“These are professions that demand a high level of discipline, quick decision-making under pressure, and a deep understanding of safety protocols,” Shirshikov says. “Insurers may view these traits as translatable to driving behaviors, thereby reducing their perceived risk.”
Law enforcement officer
Similarly, police officers and law enforcement officers are held in high regard by insurance carriers.
“Significant insurance discounts for police officers could be attributed to factors like their disciplined lifestyles, rigorous training and adherence to rules, making them safer drivers,” attorney and personal finance expert Jonathan Feniak says.
Cops can save $207 a year – or 11%, on average – and car insurance, typically $1,688 as opposed to $1,895 before the discount is applied.
Lawyer
Attorneys are trained to pay close attention to the facts and details. Perhaps this diligence carries over to their behaviors behind the wheel, making them a safer bet to insurers.
That would explain why lawyers often receive a 12% discount on vehicle insurance premiums. The average attorney policy costs $1,677 – a $218 savings – versus what they would pay before a discount ($1,895).
Scientist
Whether you look into a microscope for a living, conduct research in the lab, record significant observations in the field, or otherwise, being a scientist has its advantages. One of them is paying less for car insurance.
As with firefighters, scientists benefit from a 13% savings on car insurance just due to their profession. The average annual policy costs them $1,649 – $246 less than the before-discount price.
Teacher
Educators have a challenging job trying to keep students attentive and passing on knowledge engagingly. Fortunately, insurers have their back when it comes to a car insurance discount for teachers.
“Teachers, who are often seen as pillars of the community, tend to have stable routines and are perceived to be more cautious. That could translate to lower risks on the roads,” Shirshikov says.
If you are a teacher, expect to pay around $1,678, on average, for auto insurance every year. That represents an 11% discount or an average annual savings of $217.
Why do car insurance providers ask for occupation?
Many carriers inquire about your occupation when you apply for car insurance.
“The practice of asking about occupation can vary significantly among insurance providers,” Shirshikov says. “While some may automatically ask as part of their risk assessment and quote generation process, others may not. This can potentially be due to differing underwriting criteria or the simplicity of the initial quote process.”
If the insurance agent doesn’t ask about your profession, it’s no cause for concern.
“Not all agents or providers will ask for your occupation upfront, primarily because the emphasis is often on driving history and vehicle type,” Crist says. “However, it’s smart for applicants to mention their profession. This proactive approach can uncover potential discounts that might not have been automatically applied otherwise.”
Auto insurance companies that offer occupational discounts
Many carriers provide discounts based on profession. CarInsurance.com found that two carriers in particular offer savings in average annual premiums in most states: Geico and Progressive. Other carriers offering discounts include AAA, Allstate, Amica, American Family, Auto-Owners, Country Financial, Erie, Grange Mutual, Mercury, Nationwide, Shelter, State Farm, Travelers and USAA.
“Companies like Geico, Farmers, Nationwide, USAA and Allstate, for instance, routinely offer occupational discounts. These can start at 5% and up, depending on the carrier and the job category,” Chang says.
Select your profession to see insurance discounts, and click on the numbers in the 'State Availability' column to see the list of states where the companies offer discounts.
Do I have to tell my insurer if I change jobs?
The pros agree: It’s a good idea to update your insurance carrier if you switch occupations, although this is not required.
“Inform your insurance company if you change jobs, especially if you are moving to or from a profession known for occupational discounts,” Crist says. “This ensures your policy will reflect your current situation accurately and that you are benefiting from any possible savings or need to adjust your coverage based on new risk assessments.”
Learn more about which jobs have the cheapest car insurance
Is car insurance expensive if you are unemployed?
Thankfully, carriers will not increase your car insurance rates if you lose your job. That’s because they don’t factor in employment status, verify employment or require pay stubs when calculating premiums for vehicle policies.
But that doesn’t mean car insurance won’t feel costly if you are unemployed: If you are not earning income, every bill that comes in the mail can seem more expensive without any price change.
“It’s worth noting that while your employment status doesn’t directly affect your insurance rates, other associated factors could,” Chang says. “For example, if unemployment changes your driving frequency or distance, such as no longer commuting to a job, this change in driving behavior could impact your insurance premiums. It’s always best to keep your insurer informed about substantial changes to your driving patterns.”
Find out what type of insurance covers car payments if you lose your job
The bottom line
If you are a teacher, police officer, firefighter, civil servant, physician, farmer, engineer, attorney, or scientist, the good news is that you should qualify for a car insurance discount. But verify this by bringing it to your insurer’s attention, even if they don’t ask about your profession.
If you don’t belong to one of these vocations, asking your carrier if your chosen profession will trigger a discount can’t hurt. Also, if you switch jobs, consider updating your insurance carrier, particularly if the new profession is known for receiving occupational discounts or if there is a significant change in your driving habits and associated risk factors.
This step is crucial to ensure your coverage remains appropriate for your new situation and that you receive any new discounts for which you may now be eligible.
Resources and Methodology
Methodology
CarInsurance.com editors in 2024 collected rates from Quadrant Information Services for a 40-year-old male driving a 2021 Honda Accord LX with a good insurance score and no violation on record for a full coverage insurance policy with limits 100/300/50 and $500 comprehensive and collision deductibles. We analyzed 2,677,890 records, 4,686 ZIP codes and 1,252 cities nationwide.
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