How occupation affects auto insurance rates

Insurance is always based upon the calculated and anticipated risk. And the auto insurance companies look into deep on several factors before giving you an insurance coverage. They go beyond your age, driving record, gender etc. They see each and every aspect of your life including your profession. Yes! Your profession is also a factor that decides the amount of auto insurance premium and the kind of coverage that the company decides for you.

Occupations and car insurance rates:

Your occupation can surely impact your car insurance rates. Here is the description of the high risk and low-risk occupations.

High-risk occupations:

  • Doctors
  • Lawyers
  • Real estate brokers
  • Business owners and executives
  • Architects
  • Salespeople


Why these professions are high-risk professions? The reason is that these occupations include lack of sleep, more street work, and more hectic routines, these jobs also include a lot of traveling by the driver and too many hectic schedules. Thus their chances of falling into accidents increase. And the insurance company always decides your premiums on the basis of the anticipated ratio of accidents, If the anticipated ratio of the accident is high, then you have to pay higher car insurance rates. Similar happens with these occupations. This is how occupation affects auto insurance rates.

Low-risk occupations:

  • Scientists
  • Nurses and the first respondent
  • Pilots
  • Accountants
  • Teachers
  • Artist

These are low-risk professions because these are stable and have oriented personalities. They don’t involve too much hectic routine, thus their chances of falling into accidents are minimum. So these are taken as low-risk professions and you will pay lower premium rates for these professions.

a man driving the car

For example, teachers are considered as good drivers as they have safe driving. But it is not necessary that a high-risk occupation person will have more accidents and the low-risk occupation man will have a lower number of accidents in the future. This is just the criteria for determining the rates of auto insurance by the companies.

There are other factors too that are taken into consideration. For example, a doctor is a high-risk occupation but his ability to pay for damages is more than others. Similarly, the other high-risk occupation person will have lower chances of accidents if they travel in public transportation as compared to that of their own vehicle.

Education and car insurance rates:

How occupation affects auto insurance rates? Well, your education also matters a lot in this regard. The more educated man tends to have lower auto insurance rates. While the less educated man is supposed to pay higher car insurance rates. Someone with a 4 years beholder degree is less likely to have an accident. So he is subject to face lower car insurance rates. If you and your spouse are applying for a single car insurance policy, then the more educated among you can show his/her academic qualifications for getting lower car insurance rates Texas. This is how your education benefits you for your car insurance policies.

Is this fair or not?

When you see that your occupation and education is affecting your car insurance rates, then you must think that whether it is fair or not?

Well, this practice is a fair one as it has been practicing since many past years and the world statistics show that it is a good practice. These statistics show that the high-risk professions usually fall into more accidents and the low-risk occupations show the lesser number of accidents. This practice has valid results in many of the states of the world. Thus it is taken as a fine practice, not a discriminatory practice.

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