How does my job affect my insurance

Your job and your insurance

Something as simple as your job title can have a real impact on how much you pay for car insurance. Based on years of experience in the industry, insurers have built up an image of what each person in a profession looks like from an insurance point of view.

This image, along with a whole host of other risk factors determine how likely you are to make a claim and therefore how much your insurance premium will be.

Your insurer will look at the job you’ve entered on your insurance application and will use their past experience along with how often you use your vehicle and unfortunately, the stereotypical person within your profession to calculate the cost.

This is why it’s incredibly important to be as accurate as possible when applying for insurance.

The stereotype of your profession

It’s unlikely that your insurance company is going to know who you as an individual, so they group drivers into a number of different areas to get a picture of your risk. This means that you’re likely to be stereotyped by your job role.

For jobs that insurers think of as ‘safe professions’ such as nurses and magistrates, being associated with your profession can save you hundreds of pounds on your insurance.

If however, your job doesn’t have the best reputation when it comes to driving, footballers, DJ’s and journalists, for example, you are likely to pay more for your insurance based on the assumption that you are more likely to make a claim.

It’s not only the reputation of other drivers in your industry that can affect your premiums; the locations associated with your profession can also cause the cost to rise. Drivers in jobs with unsociable hours are more likely to park their car in high-risk areas overnight meaning they are at risk of being vandalised or stolen.

Even if you don’t have a job, you’re still likely to be stereotyped. Drivers who are retired are seen as more experienced and therefore less of a risk which means they will probably pay less for their temporary car insurance for unemployed people or students.

Now while you should never be dishonest or lie when applying for insurance, tweaking your job title could save you money on your insurance.

You could change your job title from an assistant to an advisor to save some money, but If you say you’re a teacher when you’re actually a motor racing driver, that’s fraud and not only could your insurer not pay out on any claims but you could risk fines and police action.

How often you use your vehicle

One of the most important factors insurers consider is how often you will be using your vehicle. The more you use your car, the more likely you are to have an accident just by being on the road more often.

If long journeys or constant driving are common within your role, expect to pay more than those within a regular 9-5 job.

Builders, carpenters, electricians, salesmen and even those with a long commute could face a higher insurance premium because of how much they use their vehicle for their job.

Tradesmen are also more likely to see an increased premium because they use expensive tools which are likely to be a target for thieves. Try parking your van off the road, in a garage to reduce the cost.

Temporary car insurance

No matter what your job is, the best way to save money on your car insurance is to only pay for insurance that you actually need.

If you’re going to be borrowing a car for work or need to use a work vehicle for a few weeks, purchasing annual insurance is often expensive and impractical.

For short-term driving, the quickest and easiest way to save money is with a temporary insurance policy. If you want comprehensive cover from just one hour up to 28 days, it’s the flexible solution, regardless of your job.