It may seem unfair that certain professions and certain jobs pay lower insurance premiums, but in the end it all comes down to statistics of claims. There are a number of professions that can automatically qualify you for discounts with certain carriers. Find out in this article why this is the case, which professions qualify and even better which insurers are likely to offer these discounts.
Why Insurers Favor Some and Not Others
The entire insurance industry is predicated on providing insurance to drivers at fair and competitive pricing based on historical data across a very broad range of metrics to limit their risk. When a portion of drivers account for a higher than average percentage of claims, it creates a situation where the insurer needs to charge more to cover the higher claim rate and costs.
Since every insurer tracks claims across all demographic data such as male, female, educated, uneducated, profession or job title, income, location and many more, there is a statistical model for them to compare claim rates and adjust auto insurance premiums accordingly. Sometimes the reason why one profession is cheaper than other is obvious like airline pilots or teachers, pilots drive a lot less than the average driver 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 job 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 claimed. They tend to pay for small accidents out of pocket keeping their claim rates lower than average.
Jobs that Typically get a Discount
Already mentioned above, airline pilots, teachers and medical doctors usually get cheaper insurance but there are many jobs that get discounts as well.
Sometimes you might not even realize that you are getting a discount because of your position. 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 your education level as well.
Other professions with known discounts include:
- Military personnel
- Police and Firemen
- Scientists and Engineers
- Lawyers and Judges
- Certified Public Accountants
- College Professors
Remember however that not all insurers offer discounts to every profession in every state. Some insurance companies do not offer any job-related discounts while others provide a long list of discounts. While the companies that do offer discounts may offer more in some locations than others due to regulations in each state.
Insurers with Job Discounts
In any search for cheaper car insurance, your best option will be to use an online quote aggregator like CheapAutoInsurance.net to ensure you are getting the best price. For example, make sure that the Country Financial with 10% discount for teachers is still not a higher price than Geico’s price for your situation. In the list below not all discounts are offered in all areas.
Country Financial – First responders get a 5% discount, full time teachers receive a 10% discount
Farmers Insurance – offers discounts on a wide range of professions if you meet eligibility criteria.
Geico – offers up to 15% discount to military members, up to 8% discounts for Federal employees and other discounts to employees for over 500 other organizations.
In the end, even if you get a 15% discount because of your profession, you need to get comparison quotes from CheapAutoInsurance.net to ensure it represents the best price available. In many cases, the best quote may not include these discounts but is still lower in price.