It may seem unfair that certain professions pay lower automobile insurance premiums, but in the end it all comes down to statistics of claims. There are a number of jobs that can automatically qualify you for discounts with certain carriers. Find out in this article why this is the case, which occupations qualify and even better which companies are likely to give them.
Why Insurers Favor Some and Not Others
The entire industry is predicated on providing fair and competitive policies to drivers based on historical data across a very broad range of metrics to limit their risks. When a portion of them account for a higher than average percentage of claims, it creates a situation where carriers have to charge more to cover the increased costs.
Since every underwriter tracks claims across all demographic data such as male, female, educated, uneducated, occupation title, income, location and many more, there is a statistical model for them to compare payouts and adjust auto insurance premiums accordingly. Sometimes the reason why one employment is cheaper than other is obvious like airline pilots or teachers. Pilots drive a lot less than the average and teachers are more often patient and thoughtful drivers and live closer to their workplace than others.
In other instances, it might not seem as clear. Doctors is one of the career classifications that typically get lower premiums, yet is often referred to as erratic drivers that get into more accidents. However, as a group, because their incomes are significantly higher than average Americans most minor accidents are never recorded. They tend to pay for small accidents out of pocket keeping their claim rates better than average.
Jobs that Typically get a Discount
Already mentioned above, airline pilots, teachers and medical doctors usually get cheaper vehicle insurance but there are many others. Some may not even be advertised at all but applied nonetheless. Sometimes you might not even realize that you position is helping you out here as well. They get considered quietly thinking that you will look at the bottom line anyway, as most do.
Reports released from the New York Public Interest Research Group and the Consumer Federation of America both show that preferential pricing is given to executives, managers and higher educated individuals. If your profession requires that you have a college degree, more than likely you could be paying less than an entry-level position in the same industry based on the education level as well.
Other professions with known discounts include:
- Military personnel
- Police and Firemen
- Nurses
- Scientists and Engineers
- Lawyers and Judges
- Librarians
- Architects
- Certified Public Accountants
- College Professors
- Dentists
Remember however that not all insurers present special deals to every line of work in every state. Many of them do not offer any job-related savings while few provide a long list of them. And the companies that do have them may offer more in some locations than others due to regulations in each state.
Companies with Job Discounts
In any search for cheaper car insurance, the easiest option will be to use an online quote aggregator to ensure you are getting the best price. For example, make sure that the Country Financial with 10% less is still not higher than a price you could have gotten from any other competitor.
Here is the list, but they are not across the board and equally spread in all areas. There may be larges savings in some areas and none in others.
Country Financial – First responders pay 5%, full time teachers 10% less.
Farmers – entertain a wide range of careers if you meet eligibility criteria.
Geico – offers up to 15% rate cut to military members, up to 8% for Federal employees and other deals to employees of over 500 organizations.
In the end, even if you get a 15% saving, you need to get comparison quotes to make sure it is the best available. In many cases, the best quote may not include these cuts but it can still be lower in price. Every underwriter has a unique way of applying savings and surcharges, depending on risk profile of the applicant.
So, don’t be shy and let them calculate it for you down to the last dollar. That is how you will know who is the best and how much more premiums can go down. Don’t assume any of these providers are going to be the most affordable because they have extra considerations for your line of work.