Why Does Your Occupation Affect Car Insurance?

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Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.

An insurance company has a set criterion that is used in order to assess the risk of a potential policy and give the consumer a price that is supposed to correspond accordingly. With this said, there are several factors that are taken into consideration by the system in order to ensure that every driver is provided with the most suitable policy for their insurance needs.

Drivers should expect to provide the registration of the vehicle they would like to insure, its value and the estimated number of miles that will be driven each year, as well as well as their address, date of birth and how long they have held their licence. All of this information, plus further questions about any eligibility for insurance discounts and whether or not the driver has any endorsements on their licence, plays an important role in determining the risk of providing a policy.

In fact, insurance companies will also ask drivers to describe their job role as closely as possible as part of their cover, typically from a drop-down menu. This can be seen as a slightly confusing aspect of obtaining insurance because, on the surface, you’d think that a  driver’s profession would make very little difference in regards to their safety behind the wheel. However, that is not the case.

A lot of the data that is inputted by a driver during an insurance quote is compared to local and national statistics in order to determine the risk to the insurer, and this is why some postcodes are more expensive than others. In fact, this principle applies to occupation too and explains why some professions will raise a driver’s premium whilst others will lower it. For instance, if the data suggests that teachers, for example, make more at-fault claims per year then teachers will receive a more expensive quote. This means that disclosing your occupation to an insurance company does not only mean that they are looking at your driving habits, if you commute in your car to get to work or whether or not you travel with expensive equipment – it is also based on statistical data alone.

Luckily, it is still possible to obtain a good deal as many drivers will be able to find multiple job titles that match their occupations, and this allows them to compare quotes and see whether or not the premium differs. With this said, lying about your profession is never acceptable as it can invalidate your insurance and may result in a voided policy, making it harder and more costly to get cover in the future. In addition to this, it is important to inform your insurance company of any distinctive changes to your occupation if they occur during an existing policy, such as leaving the nursing profession in favour of joining the fitness industry.

By providing an accurate description of your occupation, you can ensure that your policy remains valid at all times. To find out more information, or to compare car insurance quotes get in contact with a member of the Quote Goat team today!

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