How Your Job Title Affects Your Car Insurance Rate

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Written by Eric Schad Edited by Nick Versaw

Updated June 15, 2023

Insurance companies use several factors to calculate your car insurance premiums. Interestingly, what you do for a living can have a significant impact on what you pay. Learn more about how your occupation affects the price of your car insurance and ways you can potentially lower your insurance bill each month.

How a Job Title Affects Your Car Insurance Pricing

Your car insurance costs vary based on aspects like credit score, driving history, age, and several other components. Insurers gather this information to determine the risk of insuring you and the likelihood of you filing a claim. The higher your risk, the more expensive your car insurance policy is; the lower the risk, the greater your odds of finding cheaper car insurance.

In terms of job title, car insurance prices can vary dramatically based on that perceived risk. People with historically more dangerous jobs may have higher rates than those with safer occupations. Some occupations, such as bar staff, musicians, or actors, may also have an increased risk of poor driving or less responsible behavior. These individuals may work late and be exposed to alcohol and parties — potentially leading to high-risk driving behavior.

Conversely, job titles can cause car insurance to decrease in certain instances. The medical industry and civil service jobs usually pay less for insurance. So if you’re a doctor, pharmacist, police officer, or firefighter, you may find lower premiums.

What if I’m Unemployed?

If you’re gathering car insurance quotes and are unemployed, you’ll likely see higher premiums than employed. Loss of a job doesn’t impact your current policy pricing, but it could have an impact when you’re shopping around.

Unemployed drivers are often seen as a higher risk in the insurance industry to default on payments. In addition, unemployed individuals who can’t pay bills or incur more debt could see their credit scores fall — another determinant of car insurance pricing.

What if I’m Self-Employed?

Unless you use your vehicle for business purposes, you’re unlikely to see any difference in your car insurance rate compared to employees. The risk doesn’t change — at least in the eyes of car insurance companies.

However, you will need to purchase a separate commercial policy from your personal policy if you use a vehicle for your business. Distinguishing between personal and business use is crucial for getting the right protection and policy from an insurance provider. But like shopping for personal car insurance, you can almost always find the cheapest car insurance using an insurance marketplace (like Compare.com).

What if I’m Retired?

Being retired isn’t the same as being unemployed. It’s an important distinction that car insurance companies make. As a result, you’re unlikely to pay more for car insurance if you’re a retiree.

Age and annual mileage are much higher concerns for car insurance companies. Most retirees drive less and exhibit less risky driving behavior, lowering their insurance costs. They’re also more likely to bundle multiple products, such as home and life insurance, lowering their premiums by as much as 25%.

Job Title, Education Level, and Car Insurance Pricing

There’s also a strong correlation between education level and auto insurance rates. Occupations requiring more education — such as doctors and lawyers — will generally pay less for insurance than those who work jobs requiring only a high school diploma or associate’s degree.

This is based on the idea that those who achieve higher education are generally more responsible and low-risk by comparison. It’s a generalization, but one that’s been part of insurance premium formulations for years.

What Should I Expect to Pay for Car Insurance Based on My Job Title?

Although every car insurance company has different rates for each job title, these stats can give you insight into what you might pay. 

Here are some occupations from real insurance customers and the amount they pay on average for monthly car insurance. We’ve sorted them from lowest to highest for liability-only insurance.

On average, nurses and teachers pay the least for insurance, while servers and salespeople pay the most, interestingly.

How Can I Lower My Car Insurance Without Switching Jobs?

If your occupation is one of the more expensive job titles, don’t fret. You may have an initially higher rate, but you can do a few things to lower it. Short of quitting your job, here are some ideas to decrease your premium as a policyholder.

Get a Change of Job Title

If you believe your job title is affecting your car insurance, you may want to ask your employer to change the title of the job itself. A title change can put you into a different worker category, which could save you money. The idea is to make your job title as specific as possible and leave the choice out of the hands of the insurance company.

Use Remote Work to Your Advantage

If you work 100% remotely or have a hybrid work arrangement, you have less time behind the wheel. A decrease in annual mileage below the 13,500-mile national average can have a significant effect on your car insurance premiums. 

Drivers with mileage below 7,500 miles per year have a good chance of getting a discount on their car insurance. To secure a low mileage discount, put in the correct amount of annual miles when you shop for quotes, and always put “remote” in your job title.

Look for Job-Based Membership Discounts

Also known as affinity discounts, memberships to job-based, alumni, and professional organizations can save you between 3-20% on your car insurance. Every car insurance company has different organizations that they partner with for these discounts. To see how much you can save, call your insurer or talk to your HR department about any discounts. You may uncover a sizable chunk of change to put in your pocket.

Stay Safe

The interesting relationship between job title and car insurance is that it doesn’t consider whether you’re a bad or good driver. It’s another factor in determining car insurance premiums, along with your driving record.

People with higher-risk job titles should take all necessary steps to maintain a clean driving history. A claim, ticket, or accident can increase your car insurance rates more than a “risky” job title. Plus, you can take advantage of a safe driver discount, which can cut your premium by up to 30%.

Combine Multiple Policies

Whether you’re single or married or have young drivers in the home, combining multiple policies can help you save on your car insurance premiums. Whether you’re bundling home and auto or just need policies for you, your spouse, and your teen driver, auto insurance companies often provide multi-policy discounts between 15-25%.

Make Getting Car Insurance Quotes Your New Job

OK, so you don’t get paid for getting car insurance quotes. But with the amount you save, it could feel like you just got money back in your pocket with little effort. Do yourself a favor and shop for quotes every six months to a year to unlock the best rates possible. You’ll be glad you did.

Eric Schad Insurance Writer

Eric Schad has been an expert content writer for nearly a decade. Before getting behind the keyboard, he worked in the finance and music industries. With eight years of writing experience in the automotive and insurance industries, he enjoys communicating information that makes shopping for car insurance a breeze. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.