Many motorists are unaware that their jobs could be costing them higher insurance premiums.
When applying for car insurance, providers ask car owners to list their occupation. From this, insurance providers use the information to determine the applicant’s car insurance premiums. Some jobs carry higher premiums than others. The method used to determine premiums, as viewed by most people, is not a logical process, unless you’re an insurance provider.
For example, footballers’ average auto insurance premiums run £1,978, which makes this job one of the highest when it comes to car insurance premiums. On the other hand, soccer players pay only 684pc more than the cheapest insured group.
If you list your occupation as a “sportsperson,” your premiums could average about £1,511, which is the second-highest group when it comes to car insurance premiums. In the same group, fast-food delivery drivers pay an average of £1,291, scrap dealers pay £1,286 and apprentices pay £1,243.
For comparison, the average car insurance premium generally runs about £469.
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Why the Large Difference in Premiums for Certain Occupations?
When insurance providers are reviewing a car insurance application, they will review many bits of information, including occupation. Your job may not be dangerous; however, if it causes you to be on the road more often and at high traffic times, then insurers will charge a higher premium for your car insurance.
Here are a couple of examples. Sports stars, such as those who play football, are known to prefer fast, expensive sports cars. This type of vehicle can cost quite a bit to repair, while fast drivers tend to have more accidents.
On the other hand, exam invigilators generally have the cheapest insurance, as they are known for owning cheaper cars and being excellent drivers. Consider that a cheaper car doesn’t cost as much to repair or replace, and excellent drivers tend to have fewer accidents.
While this methodology may seem a bit confusing to insurance buyers, it makes complete sense to auto insurance providers. In the chart below, compiled from GoCompare, you’ll find some additional examples of these confusing differences in occupations, along with the savings to be had just by changing the job title.
On top of the confusion, each insurer has their own database of claims. This database is not made available for the public.
Rachel Wait, of MoneySuperMarket, said, “Insurance companies keep massive amounts of information on claims they’ve paid in the past, which then influences the way they calculate a premium. As a result, some professions are seen as more of a risk.”
A spokesperson for the Association of British Insurers said that drivers should shop around because insurers formed different conclusions on how risky a profession was. “Your occupation, along with a wide range of other factors, including your age, type of vehicle and driving record, affect your premium,” the spokesperson said.
Save Money on Your Car Insurance Premium
Before we share this tip, we need to remind you, never lie or make false statements on your auto insurance application. The reason is if you’re found out, the insurance provider may invalidate your car insurance. This is dangerous for two reasons:
- Car insurance is a legal requirement to drive
- If you make a claim and your insurance is invalidated, you’ll have to pay out of pocket for car repairs, damage, and injuries.
With that said, it’s a good idea to use an insurance comparison site to help find the lowest quotes for your car insurance. Once you receive the quote, you’ll be asked for your occupation.
When running the quotes, try out different job titles that actually fit your occupation. For instance, you may be able to choose between “mechanic” or “vehicle technician.” If you’re a writer, you may choose between “journalist” or “writer.” Another example, choose between “bank clerk” or “cashier.” Try different occupations that truly fit your work and see which one offers the cheapest car insurance rate.
You can apply this same exercise for each quote you receive. While this may seem like a dreary exercise, it’s one that could possibly mean the difference between pay £469 or £1,200 for your car insurance.