“What do you do for a living?” This question, which typically comes up in casual conversation, can immediately provide insight into the type of person you might be — your interests, passions and skillset.
A car insurance company asks for the same reason and assesses your potential risk factors. Based on what you do in your daily 9-to-5 can either increase your premium rate or provide you with car insurance discounts and a more affordable monthly payment.
- Car insurance providers consider occupation, education levels and risk when determining premiums and other individual factors.
- Drivers deemed more responsible and educated likely will pay lower premiums.
- Discounts can help lower car insurance rates.
How does your occupation affect your car insurance?
When shopping for liability or full coverage car insurance, you’ll be asked for personal information such as age, employment and driving history. Car insurance companies use this information to determine potential risky driver behaviors and hike rates. Typically, the higher the driver risk, the costlier the premium.
For example, bartenders and servers may see an increased premium because they work late hours and serve alcohol. An insurance company could assess these professions as high risk because of potential distracted or impaired driving after work.
Occupations for cheap car insurance include lower-risk jobs like teachers and nurses. These professions require higher education levels and typically receive insurance discounts. Plus, folks in these occupations are less likely to take risks on the road.
Determining if your occupation is considered high-risk can help you estimate what you might pay for auto insurance. Shopping around is essential, as rates vary from company to company. You may find a better price through friend and family recommendations, too. These can help you find an affordable option if your occupation is higher risk.
Occupations that pay the least for car insurance
Those years of late-night studying continue to pay off even after you’ve obtained your degree. Regarding car insurance premiums, drivers with higher education levels are considered more responsible, accountable and safer.
When determining premiums, insurance companies look at factors such as age, credit score and driving history. They also consider data such as the number of claims by occupation and education level. Your quote is a culmination of these factors.
The following are some of the best occupations for car insurance, according to CarInsurance.com research:
- Medical professionals
- First responders
- Federal and government workers
- Military members
Occupations that pay the most for car insurance
The spike in the gig industry in recent years has led to more delivery and rideshare drivers providing goods and services to neighborhoods across the United States. With services still in high demand — the online food delivery market was valued at $190 billion in 2021 — these drivers will likely see an increase in mileage, gas costs and car insurance premiums.
Finding affordable insurance can be a challenge for those with occupations requiring a lot of driving. Not only do insurance companies view their occupation as high risk, but regular car insurance is limited in business operations. For example, ridesharing drivers for Lyft or Uber will require additional insurance like rideshare car insurance coverage.
Additionally, jobs where workers may be considered to have fewer responsibilities or less education — bartenders, DJs, servers, cashiers and barbers — might face higher premiums based on their risk factors. Athletes and actors frequently travel on the road, which may also increase their premiums.
The following occupations are some of the most expensive when it comes to car insurance, according to CarInsurance.com research:
- Rideshare drivers
- Delivery drivers
- Car valets
- Delivery couriers
- Service industry workers
Driver discounts can save you money
Despite your risk level, there are still ways to save on car insurance. Most companies offer a variety of discounts that you might qualify for. According to the Insurance Information Institute, you can also opt for a higher deductible — the amount you pay before your policy kicks in — to lower your monthly cost by 15%-40% or more.
Remember, if you go this route, it’s best to have savings if you have to pay for your deductible.
Other common discounts
- Anti-theft devices
- Defensive driving and driver’s education courses (depending on the state)
- Low annual mileage
- More than one car (multi-car)
- Students with good grades
- Good driver/safe driver
- Married discount
- Combined auto and homeowners coverage (bundling)
- No accidents or moving violations in three years
- Good credit (depending on the state)
- Long-standing customer (loyalty)
Additionally, educators, medical professionals, first responders, federal and government workers, and military members can receive some of the highest insurance discounts, ranging from 10%-13% per month on average.
Final thoughts: Best occupation for car insurance
Your occupation and educational background are factors car insurance companies consider when determining premiums. If you drive frequently during your job or have a higher risk of being distracted or impaired after work, you likely will see an increase in your premium amount.
You can also see higher costs if you didn’t obtain a four-year college degree. This is because car insurance companies often see fewer claims from teachers, nurses, and military members and consider individuals with higher levels of education more responsible drivers.
However, finding cheap car insurance is possible, even as a delivery driver. Shop around and get at least three quotes from different insurance companies and ask about discounts you may qualify for to find the best premium for your budget.
Resources & Methodology
- Complete Coverage Group. “Can your job title really affect your car insurance.” Accessed May 2023.
- Hansen & Ryan, Inc. “Can your job title impact your car insurance.” Accessed May 2023.
- Insurance Information Institute. “Nine ways to lower your auto insurance costs.” Accessed May 2023.
- Grand Review Research. “Global Online Food Delivery Market Size & Share Report.” Accessed May 2023.