Insurance companies base premiums on calculated risks. That’s why they look at factors such as your driving history and driving habits, as well as statistics regarding the circumstances you live under: geography, gender, as well as your occupation and education.
Although this practice is sometimes controversial, insurance companies do look at statistics to check which jobs are associated with higher and lower risks of car accidents. Professions that imply higher stress levels, lack of sleep or other health issues can result in higher premiums. As such, doctors, lawyers, business owners and salespeople are often estimated to be higher risk professions, and may be charged higher auto insurance premiums.
On the lower end of the risk spectrum are scientists, teachers, or accountants since these professions are deemed to be stable, detail-oriented and associated with good mental health. Moreover, teachers have been shown to have better driving records and are therefore estimated to be low-risk drivers.
However, not every driver with a low risk occupation is a low risk driver, and not every driver with a high risk occupation is a high risk driver. That’s why other factors such as income and driving history may play a more important role when it comes to premiums. Moreover, insurance companies may also look at your education when determining insurance rates. Again, this is based on statistical averages which show that people with 4-years of higher education are less likely to have car accidents. This is why it’s smart for married couples who apply for a single auto insurance premium to list the person with the higher level of education as the main policyholder.
There have been lots of discussions over whether or not this practice is discriminatory, and whether insurance companies should be allowed to look at education and occupation as a basis to calculate your premium.
Insurance companies on the other hand argue that they need to look at job- and education-related statistics to calculate their risks in insuring individuals. It’s important to keep in mind though that jobs and education are not the primary factors to determine insurance rates, but that your driving history, driving habits, age, marital status, and gender also play a role in your auto insurance premiums.
